Economists Urge Shift to Direct Taxes as VAT Burden Grows for Bangladesh’s Poor and Middle Class

• VAT has become the largest source of government revenue in Bangladesh, surpassing import tariffs and income tax.
• The shift toward indirect taxes like VAT has increased the financial burden on consumers, especially low
• and middle-income households.
• Economists and experts urge a move toward more direct taxes to create a fairer, more balanced tax system.
• A more balanced tax structure could reduce poverty and income inequality in Bangladesh.
• With LDC graduation approaching, reliance on VAT is expected to increase unless direct tax collection improves.

Source: thedailystar.net

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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