Bangladesh has one of the lowest tax-to-GDP ratios globally, even lower than Nepal and war-torn countries like Afghanistan and Pakistan. In 2023, Bangladesh’s tax-to-GDP ratio was 8.21%, ranking as the fourth lowest worldwide, with only Sudan, Yemen, and Haiti having lower figures. The IMF had set a condition to increase this ratio by 0.6% for the release of the fourth loan tranche, but Bangladesh failed to meet it. Experts see this as alarming, citing the government’s inability to collect taxes from wealthy individuals due to a lack of political will. Comparatively, India’s tax-to-GDP ratio is 20.8%, Bhutan’s is 24.25%, and Maldives’ is 33.67%. European nations like France and Finland have ratios above 50%, while some island states exceed 100%. The decline in Bangladesh’s tax-to-GDP ratio over the years has raised concerns about meeting social and infrastructure investment needs, potentially hindering sustainable development goals (SDGs).
BIZDATAINSIGHTS
Bizdata Insights is a Market Insights, Data Intelligence and Business Advisory Platform
Our Solutions
Menu
Newsletter
Sign up for our newsletter now by entering your e-mail address and never miss out on the latest news and updates from our team!