B Mirror Report:  In order to boost economic competitiveness and encourage export diversification, the Policy Research Institute (PRI) has advocated for a gradual decrease in Bangladesh’s reliance on trade duties.

At a pre-budget consultation meeting at the National Board of Revenue (NBR) in the capital, Md. Ahad Al Azad Munem, a research associate at PRI, gave the institute’s proposals for the FY2026–2027 national budget.

According to PRI, trade taxes currently account for over 28% of the nation’s total revenue, which is significantly greater than the 5–15% range observed in comparable nations.

The think tank warned that such heavy reliance on trade-related taxation distorts the overall tax structure and weakens long-term economic efficiency.

To address this, PRI recommended a phased reduction in trade tax dependence to 7.5 percent by 2035.

It further suggested shifting the revenue focus toward more stable domestic sources, particularly value-added tax (VAT) and income tax.

According to PRI, this transition is essential for establishing a modern, transparent, and growth-oriented taxation system that can better support Bangladesh’s changing economic priorities.