The report, titled “Tax Policy for Development: A Reform Agenda for Restructuring the Tax System,” observes that the existing tax system is unnecessarily complex and inefficient, characterized by a narrow tax base, excessive reliance on manual administration, and heavy dependence on indirect taxation. It underscored that durable and credible revenue mobilization cannot be achieved through administrative action alone unless it is firmly grounded in a coherent and well-designed tax policy framework. The report identifies 55 priority policy issues across key tax segments, including direct taxes (32 issues), value-added tax (10 issues), and trade taxes (13 issues). The report cautions that when tax policy is incoherent, marked by narrow bases and distorted rate structures, even strong enforcement delivers limited revenue. Trade tax reformsOn trade taxes, the report stresses the need to gradually reduce reliance on tariffs and para-tariffs and shift toward domestic taxes such as VAT, personal income tax, corporate income tax, and property taxes.

Source: Dhaka Tribune January 29, 2026 15:05 UTC