Bangladesh Faces VAT Shortfall, Corruption, and Declining Tax-to-GDP Ratio, Urgent Reforms Needed

• NBR missed VAT collection target in FY23 by 188,081 crore despite exemptions
• Bangladesh’s tax-to-GDP ratio decreased from 7.4% in FY24 to 6.6% in FY25
• 72% of surveyed businessmen report widespread corruption among tax officials
• 82% of businesses find current tax rates unfair
• CPD study suggests aiming for a tax-to-GDP ratio of at least 15%
• Pakistan’s tax-to-GDP ratio is over 12%, highlighting Bangladesh’s lower rate
• Survey conducted among 123 companies in Dhaka and Chittagong
• Lack of accountability from tax officials cited by nearly four out of five businessmen
• CPD faced challenges and harassment in obtaining data from NBR
• High-income countries have an average tax-to-GDP ratio above 15%

Source: dhakatribune.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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