Eight out of every ten firms are dissatisfied with the existing tax regime in Bangladesh, according to a recent study by the Centre for Policy Dialogue (CPD). The study, titled “Reform in Corporate Tax and VAT: A Justice Perspective for NBR,” reveals that 82 percent of firms consider the current tax rates unfair, 79 percent point to a lack of accountability among tax officials, and 72 percent highlight widespread corruption as significant issues they face.
The think tank surveyed 123 firms on corporate tax issues and over 300 businesses on value-added tax, covering all regions of the country. A notable 70 percent of respondents also expressed frustration over the absence of a fully digital tax submission system.
These challenges are compounded by frequent disputes with tax officials, with 65 percent of businesses reporting ongoing issues related to the calculation of taxes owed.
During the survey, business leaders voiced concerns that tax assessments are often imposed arbitrarily without proper justification, creating an intangible burden that many argue is more damaging than the taxes themselves. This sense of unfairness is exacerbated by a deep mistrust regarding how the taxes collected are used to benefit the business community.
The CPD’s findings call for urgent reforms to address these systemic issues, as Bangladesh lags behind its peers in the tax-to-GDP ratio.
The paper was presented at a city hotel on Wednesday, with National Board of Revenue (NBR) Chairman Abdur Rahman Khan and other senior revenue officials, economists, and business leaders in attendance.