National Board of Revenue chairman Md Abdur Rahman Khan on Sunday underscored the importance of increasing Bangladesh鈥檚 tax-to-GDP ratio, which he described as critically low compared to neighbouring countries.
鈥極ur tax-to-GDP ratio is currently just 7.3 per cent, whereas it stands at 12 per cent in India, 17.5 per cent in Nepal, 12.3 per cent in Bhutan and 7.5 per cent in Pakistan,鈥� he highlighted during his first meeting with senior NBR officials at his office at Sher-e-Bangla Nagar. 鈥榃e must prioritise enhancing our tax collection efforts,鈥� he said.
He pointed out that the government鈥檚 budget was largely based on revenue collection targets, which he suggested were often set unrealistically high. 鈥楾he NBR is given very high targets in the budget, which are not always set with professional considerations,鈥� he noted.
This approach, according to the NBR chairman, has led to the government consistently formulating deficit budgets, which in turn increases national borrowing. 鈥榃e need to generate sufficient revenue to avoid further increases in national debt,鈥� he emphasised.
He also pointed out that 67 per cent of the government鈥檚 revenue currently comes from indirect taxes. 鈥榃e need to shift our focus toward enhancing direct tax collection, which requires competence and intense hard work,鈥� he said.
He acknowledged that the expansion of the tax net has been limited, with only 5.2 per cent of the population registered as taxpayers, compared to 23.08 per cent in India.
In a bid to improve the tax administration and support foreign direct investment, he announced the formation of three task forces to amend the customs law, tax law, and VAT law. 鈥楢 business-friendly tax administration is crucial for attracting FDI,鈥� he said, adding, 鈥楶olicy consistency is also vital鈥攆requent changes in tax policies can undermine investor confidence.鈥�
Khan stressed the importance of enhancing taxpayer services through comprehensive automation, which he believed should be both effective and sustainable. He also warned NBR officials to strictly adhere to rules and regulations. 鈥楩ollow the rules with zero deviation, or face consequences,鈥� he cautioned.
Reflecting on recent national events, he made a poignant remark about his personal philosophy: 鈥業 want to make it clear that I have no interest in living like a cockroach; I want to live like a dinosaur.鈥�
The chairman urged the NBR to meet its revenue targets through diligent work and careful planning. 鈥榃e must strive to achieve our goals with due diligence and proper planning, backed by intense hard work,鈥� he said.
