Dhaka: Dr. Rashed Al Mahmud Titumir, Prime Minister's Adviser on the Ministries of Finance and Planning, announced today that the government plans to introduce specialized tax receipts in the next national budget, designed to transparently display the allocation of citizens' tax contributions across key sectors such as education, health, and social security.
According to Bangladesh Sangbad Sangstha, Dr. Titumir made this announcement while addressing a pre-budget roundtable titled 'Transparency and Reform: Redefining the National Tax Architecture,' held at the CA Bhaban. The event, aimed at discussing reforms in the tax system, was jointly organized by the Institute of Chartered Accountants of Bangladesh (ICAB) and The Financial Express.
In his address, Dr. Titumir emphasized the government's reform strategy, which revolves around two main principles: 'connection' and 'disconnection.' The 'disconnection' principle seeks to minimize direct interactions between taxpayers and tax officials to curb corruption, while 'connection' focuses on enhancing citizens' awareness of how their taxes are utilized, thus fostering social trust between the state and its citizens.
Highlighting the current tax-to-GDP ratio of 6.67 percent in Bangladesh, one of the lowest globally, Dr. Titumir pointed out the structural weaknesses in the fiscal system. He attributed part of the problem to a culture of political patronage and cronyism, which has facilitated tax evasion and compromised the tax system's integrity.
Dr. Titumir further elaborated on the government's strategic priority to expand the economy and improve internal resource mobilization instead of merely increasing tax rates. Employment generation was identified as a crucial factor for enhancing direct tax collection.
He also outlined several structural reforms, including the formation of three task forces for economic reform, integration of the informal sector into the formal economy, reopening closed industries, and revisions to SME policies along with incentives for cottage industries. Rural development initiatives like the 'One Village, One Product' program were also highlighted as measures to formalize local production and broaden the tax base.
Moreover, he emphasized the significance of the 'Orange Economy' or creative economy, stressing support for sectors such as design, arts, gaming, and fashion to increase formal tax system contributors.
The adviser emphasized the need for coordination between fiscal and monetary policies and reiterated the necessity of central bank independence. He mentioned ongoing efforts by Bangladesh Bank on refinancing schemes and credit support mechanisms to revive closed industries and stimulate economic growth.
The roundtable featured participation from leading business figures and policy experts, who advocated for a simplified tax structure and reduced bureaucratic complexity to encourage compliance. Notable participants included representatives from the Bangladesh Textile Mills Association (BTMA), Metropolitan Chamber of Commerce and Industry (MCCI), American Chamber of Commerce in Bangladesh (AmCham), ICAB, and The Financial Express.