B Mirror Report: Dr. Rashed Al Mahmud Titumir, Adviser to the Prime Minister on the Ministry of Finance and Planning, has unveiled a comprehensive plan to reform Bangladesh’s economic framework, aiming to raise the tax-to-GDP ratio to 15 percent by 2035 and shift the country toward an investment-led growth model.

Speaking as the chief guest at a roundtable titled “Looking into Bangladesh’s Development: Priorities for the Newly Elected Government in the Short to Medium Term,” organised by the Centre for Policy Dialogue (CPD) and The Daily Star at BRAC Centre Inn, he said the previous consumption-led growth model was unsustainable and had left the country burdened with substantial debt accumulated between 2009 and 2024.

Dr. Titumir emphasized that the government is focused on transitioning rapidly toward an investment-driven economy supported by both domestic investment and foreign direct investment. A key element of this shift is a significant increase in internal resource mobilization. He pointed out that Bangladesh’s current tax-to-GDP ratio ranks among the lowest globally and outlined a phased approach to reach 15 percent by 2035, with incremental milestones of 2 percent and 10 percent along the way. He stressed the importance of fostering a tax culture tied to investment, production, and employment, while addressing systemic weaknesses in the revenue structure that require urgent reform.

Criticizing the widespread reliance on Statutory Regulatory Orders (SROs), Dr. Titumir described the current system as one where influence was bought and sold and called for its reduction to create a fairer business environment. He proposed moving from identity-based greenfield incentives to performance-based subsidies, a model proven successful in the garments sector, rewarding actual results rather than potential. The adviser also highlighted the need to reduce dependency on the Large Taxpayers Unit (LTU) and enhance revenue mobilization across all units.

Addressing fiscal policy, he noted that traditional austerity is not viable given the country’s poverty situation. Instead, he emphasized eliminating waste, repurposing fiscal spending, and ensuring accountability in the application of public funds. He expressed concern over the slow implementation of the Annual Development Program (ADP) and highlighted the Taka 60,000 crore subsidy burden in the energy sector, for which the government is adopting three strategic methods to reduce expenditure.

In conclusion, Dr. Titumir urged citizens to foster a culture in which public goods and services are properly funded through taxation, with operational budgets minimized and development spending prioritized to benefit society at large.