Bangladesh NBR admits to low tax:GDP ratio, lower revenue collection

16 Mar '25

1 min read

Bangladesh NBR admits to low tax:GDP ratio, lower revenue collection

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Acknowledging the low tax-to-GDP ratio in Bangladesh and lower revenue collection, National Board of Revenue chairman Mohammad Abdur Rahman Khan recently said there is no way to become complacent over the current ratio.
NBR is not collecting revenue as per the target, and a prime reason for that is the culture of tax exemption for a long time, he noted.
The poor are paying taxes, he said.

Acknowledging the low tax-to-gross domestic product (GDP) ratio in Bangladesh and lower revenue collection, National Board of Revenue (NBR) chairman Mohammad Abdur Rahman Khan recently said there is no way to become complacent over the current ratio.

NBR is not collecting revenue as per the target, he admitted at a discussion meeting titled ‘Income Tax Law 2023: Reforms and Perspective’ in Dhaka.

“There are so many reasons behind that, one of the big reasons is that we are in the culture of tax exemption for a long time and we have to get out from that culture gradually,” he was quoted as saying by domestic media outlets.

Bangladesh still generates two-thirds of its total revenue from indirect taxes, he said, observing that the poor are paying taxes. If the authorities can properly collect income tax, then the tax-GDP ratio will improve, he said.

On the separation of the policy wing from the revenue collection wing, Khan said the concerned law will be passed by the advisory council soon.

Fibre2Fashion News Desk (DS)

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