Persistent tax evasion ails economy

It's no secret that Bangladesh's economy continues to grapple with one of its deadliest challenges: tax evasion. Despite remarkable economic growth in recent years, billions of taka are still lost, with some of the country's most prominent public figures avoiding taxes. Tax evasion is rampant across various sectors. A large portion, if not the majority, of small businesses operate informally, allowing them to bypass taxes and official registration. Meanwhile, larger corporations and public entities exploit illegal loopholes to evade their tax obligations. Additionally, VAT evasion is widespread within the service and retail industries.

The lack of stringent penalties for tax evaders, outdated tax laws, and a vast informal economy all contribute to this ongoing issue. If left unaddressed, Bangladesh risks long-term economic instability and persistent fiscal challenges. Without decisive action, the burden will only grow for those who already pay their fair share. Can Bangladesh afford to ignore this any longer?

Nashrah Ahmed Shams, Student

North South University