Why tax reforms can't wait

Bangladesh is dealing with severe economic issues, such as growing inflation, budget deficits, and falling foreign reserves. These issues highlight the country's urgent need for substantial tax reforms. Approximately 2.0 per cent of the citizens pay income tax, and widespread tax evasion makes it difficult for the government to collect enough revenue.

With global economic challenges and the ongoing recovery from the pandemic, immediate action is required. Reforms should aim at expanding the tax base by bringing informal businesses and employees into the system. Digitising tax collection can help remove corruption, and a more equitable tax system ensures that wealthier people contribute more, reducing economic inequality. Simplifying complex tax procedures will increase compliance, but stronger enforcement can help recover lost funds.

If these improvements are not implemented, Bangladesh could end up in a worse financial crisis, which will increase social inequality. The government needs to ensure transparency, accountability, and fairness in its tax policy to strengthen the economy. Waiting any longer will make things more complicated.

Rahim Hossain

Student

Bachelor of Business AdministrationNorth South University

rahim.hossain01@northsouth.edu