While we have already questioned the National Board of Revenue’s (NRB) targets for revenue generation in the next fiscal year in previous editorials, what is also a point of contention is that, as per a recent report in the Dhaka Tribune, lower- and middle-income demographics continue to absorb the bulk of the domestic tax burden, something that is only set to increase as a result of the FY27 budget.
This is nothing if not an absolute failure on the part of our leaders and policy-makers, and goes against our vision of creating a more equitable nation.
A fair tax system should certainly strengthen the state, but it cannot be at the expense of the very citizens who sustain it.
The middle and lower classes are already squeezed by inflation, stagnant wages, and rising living costs. Adding further tax obligations will only erode disposable income and discourage consumption while also pushing some families closer to poverty, undermining social stability and trust in government.
Bangladesh’s tax-to-GDP ratio remains woefully low, but the fault does not lie with ordinary citizens failing to pay their share, but because we have long had a tax culture that allows the privileged to act with impunity where large-scale evasion, loopholes benefiting powerful groups, and weak enforcement against big defaulters persist year after year.
Instead of broadening the base and modernizing collection, policy-makers fall back on squeezing those already compliant. While we were hopeful this would not happen this year, it appears our optimism was misplaced.
It’s time we have targeted enforcement against entrenched evaders while simultaneously designing progressive taxation that shields the vulnerable while ensuring the wealthy contribute their fair share.
Bangladesh cannot keep setting lofty targets while relying on measures that punish the middle and lower classes. A sustainable tax system must be equitable, efficient, and rooted in justice.
