There have been numerous persistent issues that have held Bangladesh back for decades. Among these, arguably the most damaging to the economy has been the sheer inability of the National Board of Revenue (NBR) to do its job better when it comes to revenue collection.
Indeed, that there is expected to be a revenue shortfall of a staggering Tk105,000 crore at the end of the current fiscal year is, while immensely disappointing, not at all surprising.
To say that we must get better at revenue collection is at this point beating a dead horse, but beyond that, what we must first get better at, is setting realistic expectations and targets.
Year after year, we see revenue targets that, at the end of the fiscal year, we fall shockingly short of. This failure to meet our targets has a ripple effect; not only does this affect the economy, but arguably more importantly, it signals that we are simply incapable of meeting our targets.
These ambitious targets at a time when the economy is struggling and inflation continues to make life difficult for the average citizen, do us no favours, and we cannot help but agree with economic experts who stating that there is an urgent need for reform within the National Board of Revenue (NBR) to enhance efficiency and compliance, advocating for broad-based tax reforms that focus on enhancing tax collection and administration.
We also must have taxation policies that are more attuned to the economic realities faced by ordinary citizens. It has long been everyday citizens who are harassed by tax authorities, while our failure to simplify tax procedures leave individuals confused and frustrated.
A fair and transparent system, together with having realistic expectations and planning at the start of each fiscal year, is the only way we can start addressing a challenge that continues to hold Bangladesh back.
