Bangladesh currently languishes at the bottom of the global ranking with a mere 6.5 percent tax-to-GDP ratio. For a nation whose citizens hold profound aspirations for development, peace, and prosperity, this chronic revenue deficit poses an existential threat to future growth.

The government has ruled out any increase in tax rates, opting instead to expand the tax base and curb evasion to raise the tax-to-GDP ratio, said Rashed Al Titumir, economic adviser to the prime minister.

The National Board of Revenue (NBR) has set a target to raise Bangladesh’s tax-to-GDP ratio to 10.5 percent by the fiscal year 2034-35, as part of its newly formulated 10-year revenue strategy, according to official documents.

Riding mainly on monthly growth in December and January, revenue collection in the first seven months of fiscal year (FY) 2024-25 returned to positive territory.

In Bangladesh, the tax-to-gross domestic product (GDP) ratio is not growing. Rather, the ratio is declining. Today, the country has one of the lowest tax-to-GDP ratios in the world.