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Bangladesh can raise Tk 60,000 crore in the short-term by gradually phasing out certain tax exemptions over three to four years, Ahsan H Mansur, executive director of Policy Research Institute (PRI) has said.
"This could be implemented immediately, while other reform measures will take more time to design and implement," he told a discussion titled “Bangladesh's Domestic Resource Mobilisation: Imperatives and a Roadmap” organised by PRI in the capital on Tuesday.
Also speaking on the occasion, Dhaka Chamber of Commerce and Industry President Ashraf Ahmed emphasised making tax collection easier through automation and reducing direct contact between taxpayers and tax officials. He also advocated for giving small industries more time to grow before being taxed.
Mansur said, "Currently, the country's tax-GDP ratio is 7.6 per cent, which is the lowest in South Asia. It is close to Somalia or Democratic Republic of Congo.”
"If no reforms are made, this rate will decrease further in the coming years. And it is not possible to reach high income countries with less than 10% tax-GDP ratio."
Disagreeing with the statement, the NBR chairman said, "Everyone enthusiastically says that the tax-GDP ratio in the country is disappointing. But I don't see it that way. It is not right to compare it with that of Somalia or Congo. If you compare with those countries, you have to compare all the parameters."
He also said, "The important thing is to look at the source of revenue of those who have a high tax-GDP ratio. For example, the tax-GDP ratio of Maldives is high. Their main source of revenue is the tourism sector. But we do not have such a source."
Messenger/Disha
