Tax officials asked for bribes from 45% of companies in FY23: CPD study

Around 45% of companies stated that they were asked for a bribe by tax officials in FY23, highlighting a lack of transparency and corruption within the tax administration, according to a study by the Centre for Policy Dialogue (CPD).

The study also found that some NBR officials discourage businesses from using digital platforms for tax submissions, as "these systems reduce opportunities for tax avoidance and limit the potential for bribery."

According to the study, only 25% of the surveyed companies submit their full tax returns digitally.

The study, titled "Corporate Income Tax Reform for Graduating Bangladesh: The Justice Perspective", was unveiled at a press briefing at the CPD office in Dhaka today (21 April).

The CPD said primary data for the study, conducted in December 2024, was collected through a survey of 123 companies located in Dhaka and Chattogram.

82% businesses find current tax rate unfair, a major challenges: CPD study

The study said tax evasion in Bangladesh is driven by high tax rates, weak enforcement, complex laws, and widespread corruption within the tax system.

In its recommendations to curb corruption, including bribery by dishonest officials, the CPD suggested installing CCTV cameras in all rooms of tax officials at the NBR building to enhance transparency and accountability, and to deter illegal transactions.

However, it emphasised that this measure must be implemented with strict data security protocols, ensuring that only authorised personnel have access to the footage.

The CPD further recommended that the government establish proper checks and balances, such as independent oversight, regular audits, and clear reporting mechanisms, to ensure that tax enforcement is conducted fairly, without corruption or abuse of authority.