PM: Repeatedly increasing tax burden on existing taxpayers not sustainable

Prime Minister Tarique Rahman on Tuesday said repeatedly increasing the tax burden on existing taxpayers was not a sustainable way to increase revenue, calling for efforts to bring more eligible people under the tax net.

“It is very necessary to identify the people who are able to pay tax and bring them under the tax net through proper measures,” he said, stressing the need for a modern, digitally enabled and data-driven tax administration.

The prime minister made the remarks while addressing the Revenue Conference 2026, organized by the National Board of Revenue (NBR), at the Bangladesh-China Friendship Conference Centre in Dhaka.

Tarique said Bangladesh’s tax-to-GDP ratio remained significantly below its potential, while a large part of the economy was still informal.

He called for reducing dependence on existing regular taxpayers and broadening the tax base by bringing more eligible taxpayers into the system.

“The objective of modern tax administration should not simply be to collect more taxes but also to encourage more people to pay taxes voluntarily,” he said.

The prime minister also called for simplifying tax administration and collection procedures and making them free of corruption and harassment to encourage voluntary tax payment.

“Tax management and collection procedures must be simple, corruption- and harassment-free so that people feel comfortable paying taxes voluntarily,” he said.

He stressed the need to transform the NBR into a trusted, reliable and people-friendly institution.

“Customs, VAT or tax collection is not merely a matter of coercion. If a relationship of trust and confidence is established between taxpayers and the revenue administration, revenue collection becomes much easier,” he said.

The prime minister said taxpayers who complied with their obligations should be respected, while those deliberately evading taxes should be appropriately dealt with.

Describing VAT as an important source of revenue in a modern economy, Tarique said its success depended on effective implementation.

He also stressed that complexities in VAT administration must not hamper business and trade.

Addressing revenue officials, he urged them to prioritize the interests of the country and the institution over individual interests.

“I hope you will be able to make the NBR a more trustworthy and reliable institution for the people,” he said.

Tarique said the success of the government’s development plans would largely depend on the performance of the NBR and the overall revenue administration.

He said public confidence in the tax authority could be restored through efficient and sustainable revenue management.

Referring to the previous regime, the prime minister said the NBR, like other state institutions, had been affected by what he described as the “curse” of prolonged authoritarian rule and exploitation.

He said arbitrary revenue collection, disregard for rules and policies, patronage of individuals or groups for personal or partisan interests, and discriminatory treatment had contributed to the erosion of public confidence in the institution.

Tarique also highlighted the changing nature of the global economy, driven by advanced technologies, evolving international trade patterns, new business models and changes in international taxation and revenue management.

He said revenue officials needed multidimensional skills to address emerging economic challenges and opportunities.

“Clear knowledge of digital economy, e-commerce, transfer pricing, international taxation, trade and financial crimes, money laundering and artificial intelligence is now essential,” he said.

The prime minister said Bangladesh had taken on the responsibility of running the state amid a fragile economy and now needed to “bounce back.”

“In a Bangladesh free from fascism, it is now our turn to bounce back. It is Bangladesh’s turn to bounce back,” he said.

He said revenue collection had remained positive from mid-February to the end of June, which he said demonstrated the capacity of revenue officials.

“This proves that you can do it. You certainly can, InshaAllah. What we all need is patriotism and sincerity. Let us work together to build a strong revenue system for a prosperous Bangladesh,” he said.

Tarique said his government wanted to build a “new Bangladesh” by taking everyone along and respecting every citizen’s contribution.

“Problems exist and will continue to exist. We will try to find solutions to them gradually through discussion,” he said.

He urged government officials to work confidently and responsibly for nation-building, saying the government would prioritize issues that served the country’s interests.

The conference also featured an open discussion on revenue collection.

Finance Minister Amir Khasru Mahmud Chowdhury and Prime Minister’s Finance and Planning Adviser Rashed Al Mahmud Titumir also addressed the event.

Later, Tarique Rahman joined a photo session with senior NBR officials and visited NBR stalls at the conference centre, where he viewed presentations on digital screens.