Bangladesh unveils plan to raise tax-to-GDP ratio to 10.5% by FY35
The interim goal is to cross a 10-per cent tax-to-GDP ratio by 2032. Future Five-Year Plans will align with these benchmarks.
The 10-year reform blueprint aims at overhauling the tax system, expand compliance and modernise revenue administration.
Under a new Medium- and Long-Term Revenue Strategy of the National Board of Revenue, Bangladesh recently unveiled a plan to raise its tax-to-GDP ratio to 10.5 per cent by FY35.
The strategy has six prime goals: full automation of NBR processes, higher tax-to-GDP ratio, stronger voluntary compliance, narrowing the revenue gap, uniform enforcement of laws and improved integrity and transparency.
The strategy has six prime goals: full automation of NBR processes, higher tax-to-GDP ratio, stronger voluntary compliance, narrowing the revenue gap, uniform enforcement of laws and improved integrity and transparency.
Bangladesh’s current tax-to-GDP ratio is 7.3 per cent, among the lowest in South Asia.
Automation is key to the strategy, integrating projects like the Customs Modernisation Strategic Action Plan, Asycuda World and online filing systems. Officials expect the complex rollout to stretch into the long-term phase of the plan.
The strategy seeks to consolidate and expand reform initiatives of the past two decades.
The strategy recommends simplifying tax rules, improving taxpayer services, enforcing penalties consistently and rewarding compliant taxpayers.
Fibre2Fashion News Desk (DS)
