National tax taskforce formed to boost tax-to-GDP ratio

The taskforce will be headed by Policy Research Institute Chairman Zaidi Sattar

In a bid to make necessary reforms to boost Bangladesh’s tax-to-GDP ratio, the government has formed a nine-strong national taskforce.

According to a notification issued on Monday by the Internal Resources Division (IRD), the taskforce will be headed by Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh.

The taskforce has been asked to submit its final report to the finance advisor by Jan 31.

The move comes shortly after the IRD dissolved the advisory committee on NBR reform last week, a day after concerns were raised that splitting the National Board of Revenue (NBR) into two entities could create a “dangerous” situation for the country.

Before the committee’s dissolution, one of its members had criticised the government’s ordinance to divide the NBR into two divisions, saying the ordinance did not fully reflect the advisory panel’s recommendations.

Advisory committee member Farid Uddin had warned that if the NBR were divided “out of a grudge”, it would be disastrous for the nation.

In its latest notice, the IRD said the newly formed national taskforce aims to restructure the country’s tax framework to achieve an “acceptable” tax-to-GDP ratio.

The taskforce has been mandated to propose short and long-term recommendations for enhancing revenue collection through structural adjustments in the tax system, fostering tax policies that aid both domestic and foreign trade.