Bangladesh is losing $355 million in tax annually due to corporate profit shifting and tax abuses by wealthy individuals, according to the State of Tax Justice 2024 report published on November 19. Of the total, $335.9 million is lost through profit shifting by multinational corporations, which moved $1.3 billion out of the country—equivalent to 0.1% of Bangladesh’s $460 billion economy. Another $19.1 million is lost from individual tax abuses, including wealth hidden in tax havens. These losses represent 21.4% of the country’s annual health expenditures, highlighting the fiscal strain on a nation with a revenue-to-GDP ratio of just 8.5% in FY 2023-24.
Despite corporate tax cuts from 40% in FY 2007-08 to 27.5% in FY 2023-24, profit shifting by multinationals has risen. The report emphasizes that tax reductions do not generate more revenue, as global tax abuse deprives nations of $492 billion annually, two-thirds of which stems from multinational corporations.
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