B Mirror Report: The National Taskforce on Restructuring the Tax System today formally handed over its comprehensive reform report to Chief Adviser Professor Muhammad Yunus, presenting a range of short-term and long-term proposals aimed at boosting Bangladesh’s tax-to-GDP ratio.
The report outlined major structural changes required in the country’s tax framework to strengthen revenue mobilisation and support sustainable economic growth, while creating a more trade-friendly policy environment for both local and foreign businesses.
The eleven-member taskforce, chaired by Policy Research Institute of Bangladesh (PRI) Chairman Dr Zaidi Sattar, submitted the document at the State Guest House Jamuna. Officials present included Finance Adviser Dr Salehuddin Ahmed, ERD Secretary Md Shahriar Kader Siddiky, Finance Division Secretary Dr Md Khairuzzaman Mozumder, Financial Institutions Division Secretary Nazma Mobarek and Internal Resources Division Secretary Md Abdur Rahman Khan, according to the Chief Adviser’s Press Wing.
Formed on October 6, 2025, the taskforce was mandated to recommend reforms to overcome weaknesses in Bangladesh’s existing tax system, which remains heavily reliant on indirect taxation and constrained by inefficiencies and complexity. The panel was instructed to present actionable policy measures by January 31, 2026.
Titled “Tax Policy for Development: A Reform Agenda for Restructuring the Tax System,” the report identified 55 key policy challenges along with corresponding reform proposals. It prioritised seven major reform areas and mapped out a strategy to raise the tax-to-GDP ratio from the current 10 percent to 12 percent by 2030, and further to between 15 and 20 percent by 2035.
The taskforce also recommended rebalancing the tax structure by increasing the share of direct taxes from 30 percent to 50 percent, while reducing dependence on indirect taxes.
Among other major proposals were widespread digitalisation, automated systems, artificial intelligence-driven risk assessment, simplified tax procedures, incentive restructuring, risk-based audits and a gradual shift from trade taxes toward domestic revenue sources.
For tariff modernisation, the report advised creating equal effective protection for both export-oriented and import-substitution industries. It also suggested replacing valuation at ports with post-clearance audits and eliminating the need for a separate valuation database for goods clearance.
In the VAT regime, the taskforce proposed moving toward a single-rate system instead of the current multiple-rate structure.
Receiving the report, Chief Adviser Prof Yunus expressed appreciation to the taskforce, noting that despite the interim government’s limited timeframe, implementation of the reforms would begin promptly.
“These policies will clarify revenue sectors and collection methods, bringing a significant transformation in economic governance,” he said.
Finance Adviser Dr Salehuddin Ahmed described the document as a vital roadmap for improving revenue mobilisation and strengthening transparency in the tax system.
Dr Zaidi Sattar pointed out that revenue mechanisms had become overly complicated over the past decade, stressing that without swift structural reform, expanding revenue capacity would remain difficult. He added that comprehensive reforms would generate long-term positive effects across the economy.
Internal Resources Division Secretary Md Abdur Rahman Khan said the report effectively outlined existing challenges and presented clear solutions for addressing them.
