Bangladesh posts worse revenue-to-GDP ratio than Uganda: NBR chairman

Bangla Press Desk:   Although Bangladesh increases its revenue every year, the amount remains very low compared to its GDP. In Uganda, revenue accounts for 12.5 percent of GDP. “We often make jokes about Uganda, but in terms of revenue collection relative to GDP, our position lags behind theirs. We have no alternative but to increase revenue,” said National Board of Revenue (NBR) Chairman Abdur Rahman Khan on Tuesday.

He made the remarks at a press conference at the National Revenue Bhaban, marking VAT Week. The chairman urged authorities to study areas where revenue collection remains weak and to strengthen tax collection from both VAT and income tax.

“If we fail to raise revenue, the country will fall into debt. Just as a family’s debt rises when income does not, the same applies to the state. We want to collect taxes without coercion, but we must bring non-compliant taxpayers under the system,” he added.

VAT Week will run from 10 to 15 December, with the theme, ‘Register on time, pay VAT correctly’. The NBR plans a special registration campaign from 10 December to 31 December to enrol 100,000 new businesses under VAT.

Currently, 644,000 entities are VAT-registered, and last fiscal year, 38 percent of NBR’s total revenue came from VAT. Many businesses still remain outside the registration system.

Answering questions on the revenue target of Tk5.5 trillion this fiscal year, the chairman said, “Meeting revenue targets always challenges NBR. As targets rise, so do the challenges.

We are intensifying efforts, especially to curb tax evasion. Our intelligence units have already uncovered many cases, and we will continue this work.”

He added that digitalising revenue collection would increase efficiency and reduce evasion. “We have made online income tax filing mandatory, and VAT refunds are now processed online,” he said.

BP/SP