Govt to boost revenue without raising tax rates: Titumir
Plan focuses on investment, reforms and curbing tax evasion
The government will aim to increase revenue without raising tax rates, Prime Minister's Adviser on Economic and Planning Rashed Al Mahmud Titumir said today (29 March).
"The target would be met by accelerating economic activity through higher investment and employment, alongside structural and policy reforms; curbing tax evasion and fraud; and shifting from blanket tax exemptions and rebates to performance-based incentives," he said at a press conference at the NBR headquarters in Agargaon.
Earlier in the day, he held two rounds of meetings with a task force formed to boost revenue collection in the income tax, VAT, and customs wings of the NBR, where ways to increase revenue were discussed. NBR Chairman Abdur Rahman Khan and other senior officials were present.
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On the widely discussed proposal to bifurcate the NBR into two divisions – Revenue Policy and Revenue Management – he said the idea was reasonable, but its implementation needs further examination before a decision is taken.
He alleged that the previous Awami League government had provided misleading information on revenue collection.
"The fallen government consistently misrepresented revenue figures, which had no relation to actual collection. If you want to verify, you can check iBAS+ and see that the figures shown during that time do not match reality," he said.
"This means that on one hand, they enabled plundering and provided benefits through a crony system, keeping the tax-to-GDP ratio one of the lowest in the world. On the other hand, the income they reported had no real correspondence with actual figures," he added.
He further said the country has inherited "a devastated economy" along with one of the lowest tax-to-GDP ratios globally, below 7%, and is facing additional challenges amid global tensions.
Referring to energy concerns, he said the government aims to ensure diversified financing of energy sources.
On energy pricing, he said, "We want to make decisions on energy while keeping in mind the expectations of the people."
He also said the government intends to refrain from borrowing, both domestically and from foreign sources, to finance increased public expenditure.
