Bangladesh lost an estimated Tk 226,236 crore in tax revenue in 2023 due to evasion and avoidance, driven by the lack of a fully digitalised tax system.
This finding was revealed in a study report of the think tank the Centre for Policy Dialogue (CPD) unveiled on Monday.
On the occasion, the research organisation a briefing on corporate income tax reform for graduating Bangladesh at the CPD office in Dhanmondi, Dhaka.
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The CPD study estimated that around 50 percent has been lost to corporate tax evasion. The estimated corporate tax evasion in 2023 would be roughly Tk 113,118 crore.
The global trend in corporate income tax (CIT) has declined in recent years, dropping from 27.5 percent in 2006 to about 23.6 percent in 2016.
Many developing countries maintain standard CIT rates of 25%, 30%, or higher; for instance, China has a CIT rate of 25 percent, Malaysia 24 percent, Indonesia 22 percent, Pakistan 29 percent and Myanmar 22 percent.
Some developing countries offer significantly lower CIT rates, such as Oman and Uzbekistan at 15 percent, and Paraguay and Kyrgyzstan at 10 percent.
Tax Structure of Developing Countries and LDCs Country Group CIT Rate Global Trend (2006-2016) 27.5% (2006) to 23.6% (2016) Developing Countries 22%-29% Least Developed Countries (LDCs) 10%-35% Graduated LDCs 21%-35%.