Bangladesh will introduce a new policy placing full authority for tax exemptions with parliament, removing decision-making power from the government and National Board of Revenue (NBR).
NBR Chairman Md Abdur Rahman Khan said the move aims to boost revenue and reduce politically influenced exemptions.
At a recent meeting, NBR Chairman Abdur Rahman Khan noted that the government is providing tax exemptions that are nearly equal to its total revenue collection. According to NBR estimates, these exemptions amounted to more than BDT 300,000 crore, which is approximately 7% of the country’s GDP in the 2021–22 fiscal year, while the tax-to-GDP ratio remained below 8%.
The government has accepted most IMF and World Bank reform proposals, though a final decision on exchange rate liberalisation is still pending.
