The prime minister’s economic affairs adviser Dr Mashiur Rahman has said the country’s existing revenue system should be deeply scrutinised to stem the decline of the tax-GDP ratio over the last three years.
The adviser made the remark at a national steering committee meeting on the seventh five-year plan (2016-2020) at the Planning Ministry two weeks ago, with Planning minister Minister AHM Mustafa Kamal in the chair.
Mashiur Rahman said the premier underscored the need for enhancement of efficiency of the National Board of Revenue officials to boost the country’s revenue earning.
A fresh policy will be adopted in the seventh five-year plan to draw foreign investment in the country for creation of employment and scope for more revenues for the government exchequer, he added.
The adviser observed that remittances from Bangladeshi expatriates mostly go to the investment in unproductive sectors specially land.
According to the Finance Division, the tax-GDP ratio might stand at 8.95% in this fiscal year of 2014-15.
The tax-GDP ratio was 8.94% in FY2013-14 which tallies the lowest in South Asia.
The government had a target to raise the level to 9.2% for the entire fiscal year of 2013-2014 while this fiscal year the tax-GDP ratio target is estimated to be above 10%.
The calculation of 9.2% tax-GDP ratio in FY2013-2014 was based on the new base year of 2005-06 of GDP measurement.
Officials said a revenue collection of Tk1,25,000 crore in this fiscal year of 2014-2015 against the target of Tk1,49,720 crore would be satisfactory for the Finance Division amid political turmoil.
The next fiscal revenue earnings are estimated to be Tk1,76,370 crore, they added.
The Finance Division will propose Tk2,91,600 crore as next budget target at the fiscal coordination council meeting next week.
