Dhaka, Mar 12 (V7N) - During a recent discussion meeting titled “Income Tax Law 2023: Reforms and Perspective,” National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan emphasized the need for improvement in Bangladesh's tax-to-GDP ratio, which he acknowledged remains low. He stated that despite some exaggeration, complacency regarding the current ratio is unwarranted, as the country faces significant demands for infrastructure, health, and education expenditures.

Khan pointed out that Bangladesh generates a substantial portion of its revenue from indirect taxes, which disproportionately affects poorer citizens. He stressed the importance of increasing income tax collection to enhance the tax-to-GDP ratio and highlighted the necessity of transitioning away from a long-standing culture of tax exemptions. He noted that business people are generally willing to pay taxes if they see value in their investments.

The NBR Chairman also discussed plans to implement a faceless service system to streamline taxpayer interactions and improve revenue collection efficiency. He mentioned upcoming legislative changes aimed at separating the policy-making wing from revenue collection to enhance operational independence.

Khan's remarks come at a time when Bangladesh's tax-to-GDP ratio stands at approximately 7.3%, significantly lower than that of neighboring countries like India (12%) and Nepal (17.5%). The NBR is facing challenges in meeting revenue targets set by the Finance Ministry, which often relies on outdated methods for forecasting. Khan advocated for a more data-driven approach to target-setting to better align revenue expectations with economic realities.

Overall, the NBR is focused on reforming tax policies and improving administrative capacities to boost revenue collection and address the country's financial needs effectively.

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