United News of Bangladesh

The government plans to tackle the ongoing economic pressure by significantly increasing revenue collection instead of taking on new loans, Prime Minister’s Economic and Planning Adviser Rashed Al Mahmud Titumir said on Sunday. Titumir said expenditure on ensuring uninterrupted fuel supply has nearly doubled amid the Middle East situation, but the government is unwilling to finance this burden through borrowing. Instead, it is focusing on widening the tax net and improving compliance. Investment and employment opportunities to increase revenue in post-election era: Speakers “We will not increase tax rates; rather, we will expand the tax base. Those evading taxes will be brought under the proper monitoring” Titumir said at a press briefing held at the National Board of Revenue (NBR) building in Agargaon after a meeting with a taskforce on revenue mobilisation. Highlighting regional comparisons, he noted that while countries like India, Sri Lanka and Pakistan maintain tax-to-GDP ratios above 10 percent, Bangladesh has long remained below 7 percent, alongside a rising external debt burden. The adviser said the ongoing Middle East tensions have added fresh strain, disrupting supply chains and increasing volatility in global fuel prices, thereby pushing up import costs. Describing the current situation as challenging, Titumir said the government aims to achieve its revenue targets more aggressively than ever before, particularly over the next three months. “The new government inherited a weakened economy, with a tax-to-GDP ratio below 7 percent. The Middle East crisis has further aggravated the situation,” he said. He also criticised the previous administration, alleging that revenue figures were often overstated and manipulated, leaving the tax system structurally weak and contributing to rising poverty. To address this, the government has expanded social safety net programmes, including farmer cards and family cards, to cushion vulnerable groups. Titumir said the government aims to raise the tax-to-GDP ratio to 10 percent during the current tenure and, if re-elected, to 15 percent in the next term. “Three dedicated taskforces are currently working to curb tax evasion and fraud.” Titumir also ruled out any immediate hike in fuel prices, noting that higher fuel costs would directly increase irrigation expenses for the upcoming Boro season, raise production costs and fuel inflation.