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World Bank Report: Bangladesh has the potential to collect three times more

  • Bangladesh has the potential to collect three times more value-added tax (VAT) by reducing policy and compliance gaps
  • The updated Income Tax Act (2023) can increase income tax collection by expanding the tax base
  • Domestic revenue mobilisation needs to be strengthened to support the country’s development strategy
  • Administrative reforms can modernize processes and enhance transparency
  • Policy reform is needed to transition from trade-based taxes to income and consumption taxes
  • Bangladesh is highly reliant on trade-related taxes and is preparing to graduate from LDC status in 2026
  • The country is committed to reducing protectionist tariffs to promote international trade
  • There is an opportunity to move towards a tax structure consistent with an upper middle-income country by reducing reliance on indirect taxes and expanding direct taxes.

Source: observerbd.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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