Widen the Tax Net, Not the Burden

Bangladesh needs to raise more revenue, but repeatedly asking the same taxpayers to pay more is neither fair nor sustainable. The Prime Minister’s call for widening the tax net is therefore timely. Speaking at the Revenue Conference 2026 in Dhaka, Prime Minister Tarique Rahman stressed the need for a modern, digital, data-driven and people-friendly revenue administration. As the country’s tax-to-GDP ratio remains below its potential, the priority should be to bring more eligible individuals and businesses into the system and make taxation a normal civic responsibility.

However, the present system remains heavily dependent on taxpayers already visible to the authorities. Many potential contributors still remain outside the formal economy. Meanwhile, compliant taxpayers can face complicated procedures, arbitrary decisions and, in some cases, allegations of corruption and harassment. The imbalance is becoming harder to sustain as the economy changes. E-commerce, digital transactions, international trade, transfer pricing and emerging technologies are creating new forms of income and business. Conventional methods may fail to capture them. The revenue administration must also develop the skills and tools needed to understand these changes.

The consequences go beyond government collection figures. A limited tax base restricts the state’s capacity to finance public services and development. It can also increase dependence on borrowing and indirect taxes. For businesses, uncertainty and high compliance costs can discourage formalisation and expansion. For citizens, unequal treatment can weaken confidence in public institutions. More importantly, if people believe that compliance only makes them easier targets, their willingness to participate may decline. Such a cycle can damage both revenue mobilisation and economic activity.

Against this backdrop, reform should focus on making the system smarter, simpler and more accountable. The National Board of Revenue should use digital records and data analysis to identify potential taxpayers and detect evasion. This can reduce reliance on intrusive and discretionary practices. Tax and VAT procedures should be streamlined and made predictable. Deliberate tax evasion must face effective enforcement. At the same time, compliant citizens and businesses deserve professional and respectful treatment. Revenue officials also need specialised training to deal with digital commerce, international taxation, transfer pricing and emerging business models.

We expect the government to turn the Prime Minister’s message into concrete reforms with measurable results. The aim should be to uncover untapped sources of revenue without creating unnecessary pressure on compliant taxpayers. Greater transparency and stronger accountability are essential. Better use of technology can further improve efficiency and restore confidence. 

Nevertheless, reform will succeed only when citizens see taxation as fair and predictable. Bangladesh needs a revenue administration that encourages participation, protects legitimate taxpayers and applies the rules consistently. Thus, a broader tax base can become a foundation for stronger public finances and sustainable development.