Bangladesh’s tax evasion culture, poor infrastructure, a lack of skilled labor, automation, and effective government are all contributing to the country’s stagnant VAT-GDP ratio. The greatest barriers to effective VAT collection, according to Syed Mushfequr Rahman, commissioner of the Customs, Excise & VAT Commissionerate, Chattogram division, are the exemption of VAT at various rates at various levels and misunderstandings of the VAT law. VAT exemptions apply to about 50% of all goods and services.
The tax-GDP ratio is one of the world’s lowest in Bangladesh, which is below 10 percent. The NBR should broaden its tax net to include the entire nation and deploy 3 lakh electronic fiscal devices (EFDs) at retail and wholesale establishments nationwide. After Bangladesh moves from being a least developed to a developing country, according to the United Nations, the NBR would confront significant hurdles, according to Commerce Minister Tipu Munshi.
The Daily Star