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Urgent reforms needed to curb VAT leakage, expand tax net: Salehuddin
Finance Adviser Dr Salehuddin Ahmed on Wednesday underscored the urgent need to curb VAT leakage, widen both VAT and income tax coverage, and modernise Bangladesh’s tax administration.
“Bangladesh’s economic progress depends fundamentally on its ability to mobilise domestic resources rather than relying excessively on foreign loans and grants,”he said at a seminar organised at the Multipurpose Hall of the Revenue Building in the capital to mark VAT Day and VAT Week.
The Adviser stressed that VAT remains one of the most powerful and modern forms of taxation worldwide, yet Bangladesh continues to collect far less VAT as a share of GDP compared to neighbouring countries even though the economy has expanded significantly.
“There is no doubt about the need for VAT. In many countries, VAT contributes far more to national income. In our country, however, VAT collection remains extremely low compared to GDP,” he said.
The Finance Adviser pointed out that a major obstacle is VAT leakage at the retail and business levels.
“A very unfortunate reality in Bangladesh is that VAT sometimes does not reach the government’s treasury,” he said.
He called for a fundamental shift in mindset among businesses and consumers so that both parties accept VAT as a national obligation and insist on proper documentation and compliance.
He urged customers to demand VAT invoices and expect businesses to remit VAT properly. “People must be convinced that paying VAT ultimately benefits them—through improved public services,” he added.
Dr Ahmed also expressed concern about the country’s chronically low tax-to-GDP ratio, saying Bangladesh cannot fulfill its development ambitions without strengthening domestic revenues.
Priority sectors such as education, healthcare and social protection remain constrained when the state is forced to rely on external borrowing, he said.
“The biggest challenge is that our tax-GDP ratio is extremely low. Without increasing our own resources, how will we carry out development work? Loans and grants restrict our flexibility and limit our ability to prioritise the needs of our people,” he said.
“For people to pay tax willingly, the government must ensure that taxpayers receive services and trust that their money is used properly,” he said.
The Finance Adviser urged the National Board of Revenue (NBR) to move swiftly to broaden the system, modernise processes and make tax compliance more convenient.
He also suggested gradually reducing reliance on supplementary duties, increasing the share of income tax and VAT, and strengthening non-tax revenues.
“If the system is made easier and modernised, people will not hesitate to pay VAT. We must expand good practices, reduce hassle, and strengthen enforcement to ensure that VAT reaches the treasury,” he said.
He expressed optimism that if reforms continue over the next two months, a significantly modernised and streamlined system will be ready for the next government to take forward.
Through rationalisation of tax expenditures, he said that the scope of VAT has expanded, which is reflected in this year’s budget.
Revenue growth up to November has been 15%, a result the government had not even expected, he said.
“This achievement comes at a time when government expenditure especially capital spending has been curtailed. Rising revenue alongside restrained expenditure indicates that the private sector’s contribution to economic growth is increasing,” he added.
NBR Chairman Md Abdur Rahman Khan said VAT is often misunderstood—businesses believe they pay VAT, but in reality they only collect it on behalf of the government from consumers.
“They pay income tax, but VAT is not their tax; it is collected and deposited with the government. Import duties, too, ultimately fall on consumers.”
He said no advanced country relies on trade-based taxes for major revenue, and Bangladesh must shift toward domestic sources.
“Despite the potential of income tax, significant leakage exists. Ultimately, he said, most revenue should come from income tax, followed by VAT, while customs duties should play a minimal role. LDC graduation will make this shift unavoidable.”
He said the VAT system has become unnecessarily complicated and needs simplification, especially ensuring that businesses understand the VAT credit mechanism.
Finance Secretary Dr Md Khairuzzaman Mozumder, Economic Relations Division Md Shahriar Kader Siddiky, Financial Institutions Division Nazma Mobarek, FICCI Vice President Yasir Azman , ICCB president Mahbubur Rahman and Policy Research Institute chairman Dr Zaidi Sattar also spoke.
NBR Chairman Md Abdur Rahman Khan Presided over the seminar where NBR Member (VAT audit) Syed Mushfequr Rahman presented the keynote paper.
NBR Member (VAT Policy) Md Azizur Rahman delivered the welcome address.
19 days ago
Bangladesh to see fair, inclusive polls in February: Adviser
Claiming that the election season is already underway across the country, Religious Affairs Adviser Dr AFM Khalid Hossain on Wednesday said the upcoming national election will be held in a festive, fair and inclusive manner.
He affirmed that the government is actively working to ensure a smooth and transparent electoral process.
The adviser made the remarks while talking to journalists at the inauguration of two model mosques in Natore.
Addressing concerns about corruption, he warned that strict action would be taken if any irregularities or defects are found in the construction of model mosques.
On the issue of electricity supply at mosques, he said discussions with the Ministry of Power are ongoing and solutions are expected soon.
He also emphasised that no irregularities will be tolerated in Hajj management, noting that Tk 82.8 crore was refunded last year and that refunds will be ensured this year as well.
Senior officials from the Public Works Department, Natore Deputy Commissioner Asma Shaheen, Superintendent of Police MA Wahab, and other government representatives were present at the event.
19 days ago
Mohammadpur Murders: Domestic help finally arrested after days on the run
Police on Wednesday (December 10, 2025) arrested Ayesha, the young domestic help who had been working at the flat for only four days, in connection with the murders.
She was detained during a drive in Nalchity upazila of Jhalakathi around 1pm, said Abdullah Al Mamun, Assistant Commissioner (Mohammadpur zone) of Dhaka Metropolitan Police under the Tejgaon Division.
The victims—Layla Afroz, 48, and her daughter, Nafisa Binte Aziz, 15—were found dead hours earlier by Layla’s husband, AZM Azizul Islam, who rushed home after failing to reach them.
Read more: Mother, daughter found dead at Mohammadpur flat
He filed a case with Mohammadpur Police Station that same night, launching an investigation now centred on the young domestic worker who had recently entered their lives.
A Young Helper With Troubled Past
According to the case statement, Ayesha had only just begun part-time work at the family’s flat.
Police said that she originally hailed from Rangpur but had been staying with an uncle and aunt at Geneva Camp after reportedly losing both her parents in a fire—details that paint a portrait of a vulnerable girl navigating an uncertain life in the capital.
Chilling Movements Captured on CCTV
Investigators say building CCTV footage has emerged as a crucial piece of evidence.
At 7:51am on Monday, Ayesha was seen entering the premises dressed in a burqa. Less than two hours later, at 9:35am, she appeared again—this time in the school uniform of Nafisa, wearing a mask and carrying the teenager’s school bag as she exited the building.
Read more: Domestic help sued over Mohammadpur double murder
The change of clothing and hurried departure have deepened suspicions about her role in the killings.
Missing Valuables, Possible Motive
The complainant told police that several items—including a mobile phone, laptop and gold jewellery—were missing from the flat. Investigators say the disappearance of valuables suggests that burglary may have been a motive, though the brutality of the killings points to a crime far more complex.
Arrest in Jhalakathi Raises Questions
Why Ayesha travelled to Nalchity upazila and who, if anyone, helped her flee remain part of the ongoing inquiry.
Her arrest marks a significant breakthrough, but police say they are now focused on retracing her steps between the time she left the flat and her eventual capture.
Read more: Mohammadpur Murders: Chilling details emerge as hunt for domestic help intensifies
19 days ago
Trucker killed in Jhenaidah road accident
A driver was killed in a head-on collision between two trucks in Jhenaidah district on Tuesday night.
The deceased was identified as Rabiul Islam, 60, a resident of Shapahati village in Shalikha upazila of Magura district.
The accident occurred around 9:30 pm near Markaz Mosque on Dhaka-Jhenaidah highway, on the outskirts of the town.
According to police, a truck carrying sand from Panchagarh was heading toward Jashore when it collided head-on with another truck-loaded with paddy straw from Magura, leaving Rabiul who was driving the straw-laden truck, critically injured.
On information, fire service personnel rescued him and rushed him to Jhenaidah Sadar Hospital where doctors declared him dead.
Dr. Hamidur Rahman Belal of Jhenaidah Sadar Hospital said the trucker succumbed due to excessive bleeding.
Highway police seized both trucks, and the body was kept at the hospital morgue.
19 days ago
Health assistants’ sit-in enters 12th day as pay, status dispute deepens
Health assistants on Tuesday continued their sit-in in front of the Directorate General of Health Services (DGHS) for the 12th consecutive day, pressing for amendments to recruitment rules, removal of salary disparities and recognition of their technical status.
Hundreds of health assistants filled the DGHS premises in Mohakhali with protest chants, accusing the authorities of decades of deprivation and repeated breaches of commitment.
On December 7, health assistants from across the country held a daylong protest at the DGHS and later announced an extended sit-in in Dhaka with representatives from all 64 districts.
From 10am on Wednesday, health assistants, assistant health inspectors and health inspectors — under the banner of the Bangladesh Health Assistant Association, representing 26,000 frontline workers — continued their full-day work abstention for the 12th straight day.
Their six-point demand includes: amending recruitment rules to require a bachelor’s degree (or equivalent) and upgrading the post to Grade 14; granting Grade 11 and technical status to those who completed the in-service diploma; ensuring higher grades through sequential promotions; including all health assistants and inspectors in the graduate pay scale without requiring additional training; adding previously obtained time scale or higher scale benefits during pay scale revision; and granting equivalency recognition to those who completed the in-service diploma (SIT).
The demonstrators said they never intended to disrupt essential health services at the grassroots level, but after 27 years of unfulfilled promises and no progress, they were ‘left with no choice’ but to intensify their agitation.
They alleged that DGHS officials repeatedly forwarded ‘incorrect information’ to the ministry, causing the file to be returned multiple times. They also claimed that the original government order (G.O.) issued in 1985, which created the post of health assistant, has gone ‘missing’ from DGHS records.
Around 2,200 health assistants who completed the SIT diploma said their qualification still remains unrecognised.
They reiterated their demands for Grade 14, Grade 11 with technical status for diploma holders, recognition of equivalency, inclusion in the graduate scale, and structured promotion pathways.
Health assistants play a key role in primary healthcare — conducting household visits; registering births and deaths; registering pregnant women and newborns; identifying tuberculosis patients; supervising DOTS medication; and organising courtyard meetings and mother gatherings.
Despite these responsibilities, they said they receive just Tk 600 as travel allowance and a basic salary of Tk 9,700, while officials who once ranked below them have since progressed far ahead in grade and pay.
Health Assistants Association's demo continues for second day
Fazlul Haque Chowdhury, Member-Secretary of the Association’s Central Coordination Committee, said the sit-in would continue until the government issues the G.O. resolving their demands.
“Our file has already been sent to the Ministry of Public Administration. We hope the government will seriously consider the demands of frontline workers who serve the grassroots. Once the G.O. is issued, we will return to our workplaces,” he said.
The work abstention began on November 29 at the Shaheed Minar before shifting to the DGHS premises, drawing participation from health workers across all districts.
Due to the ongoing protest, around 120,000 temporary vaccination centres remain closed, forcing mothers and children to return without receiving vaccines. Rural health services have also been severely disrupted.
Health assistants warned that unless the crisis is resolved soon, mothers and children may face higher risks of infectious diseases.
19 days ago
Man burned in Narayanganj gas explosion dies
A man, who suffered burn injuries in a gas leak explosion in the Kanchpur area of Sonargaon, Narayanganj on Saturday, died while undergoing treatment in Dhaka on Tuesday night.
The deceased was identified as Alauddin, 35.
He breathed his last around 8:30pm while receiving treatment at the Intensive Care Unit of the National Institute of Burn and Plastic Surgery, Dr Shawon Bin Rahman, resident surgeon of the institute, said.
He said four people were brought to the institute early Saturday after a gas line leak triggered an explosion at their home around 3am.
Body of unidentified man with burnt face recovered in Kushtia
Of them, Alauddin sustained 40 percent burns, Jarina Begum 20 percent, Sathi Akter 12 percent, and four-year-old Saima 30 percent, the surgeon said.
All three are currently receiving treatment at the institute, he added.
The explosion occurred after gas accumulated inside the house, officials said.
19 days ago
BAPLC elects Riad Mahmud as president, Ishtiak Ahmed as vice president
Riad Mahmud, Managing Director of National Polymer Industries PLC, and Engineer Syed Ishtiak Ahmed, Managing Director of Saiham Cotton Mills Limited, has been elected as the president and vice president of Bangladesh Association of Publicly Listed Companies (BAPLC) for the tenure of 2026-27.
The newly elected executive committee members are Rokeya Quader, Chairman, Desh Garments Limited, Syed Farhad Ahmed, MD & CEO, Amber Networks Limited, Md. Nurun Newaz, Chairman, National Credit and Commerce Bank PLC, Mohammad Yunus, Vice Chairman, Shahjalal Islami Bank PLC, Md. Imam Shahin, MD & CEO, Asia Insurance PLC, Farzana Chowdhury, MD & CEO, Green Delta Insurance PLC, Shahriar Ahmed, Chairman, Apex Spinning and Knitting Mills Limited, Humayun Rashid, MD & CEO, Energypac Power Generation PLC, Mohammad Shamsul Islam, MD & CEO, National Housing Finance PLC, Ziad Rahman, Director, Delta Life Insurance Co. Limited, Sharif Shah Jamal Raj, Director, Robi Axiata PLC, Zafar Ahmed Patwary, Chairman, Peoples Insurance Co. Limited, Md. Sharif Hasan, Director, Chartered Life Insurance PLC, Monirul Islam Akhand, MD, Summit Power Limited, Chowdhury Kamruzzaman, Director, Rangpur Foundry Limited, Md. Zahidul Islam, Managing Director, Probhati Insurance Co. Limited, Hasan Tariq, Chief Executive Officer, Eastern Insurance Co. Limited, Ujjal Kumar Saha, MD, GQ Ball Pen Industries Limited, and Md. Abdullah Al Emran, Managing Director, e-Generation PLC.
The election was recently held under the supervision of the Election Board, adhering to the BAPLC Election Rules and Schedule, and in alignment with the Trade Organization Regulations-2025, according to a press release.
19 days ago
Govt decides to buy 1 spot cargo of LNG from UK
The government is moving ahead with the purchase of one spot cargo of LNG from UK to meet the growing demand for energy in the country.
The Advisers Council Committee on Government Purchase in its 49th meeting in this year approved the proposal on Tuesday.
Finance Adviser Dr Salehuddin Ahmed presided over the meeting held at the Cabinet Division Conference Room at Bangladesh Secretariat today.
Petrobangla under the Energy Division will procure LNG from Total Energies Gas & Power Ltd., United Kingdom, at a unit price of US$10.37 per MMBtu. The total value of the LNG cargo stands at Taka 436.07 crore.
Officials said the procurement is part of the government’s strategy to ensure adequate energy supply during peak winter demand.
BERC raises LPG price for December
Besides, the day’s purchase committee meeting recommended approval of a major construction package under the “Haor Area Flyover Roads and Physical Infrastructure Development Project.”
The approved package (SUN/Dharmapasha/CW-6) involves construction works in Sunamganj’s Dharmapasha upazila with a contract value of Taka 347.46 crore. MM Builders & Engineers Ltd. has been recommended as the responsive bidder.
Officials said the project will significantly improve rural connectivity and disaster resilience in Haor regions.
19 days ago
Youth stabbed dead in Dhaka
A youth was stabbed to death in Lalbagh area in the capital on Tuesday.
The deceased was identified as Hossain, 24, son of Shah Alam of Madaripur district. He used to work at a bangle factory.
Yasin Ali, Officer-in-Charge (OC) of Lalbagh Police Station said they received information that a youth was stabbed to death in the area.
He was rushed to the emergency unit of Dhaka Medical College Hospital around 4pm where doctors declared him dead.
Youth killed in lynch-mob attack at Lalbagh
From the initial findings it appears that he was killed over previous enmity, he said.
Whoever is involved in the incident will be brought under law,” he added.
19 days ago
85% of workforce remains unrecognised in informal sector: Adviser Farida
Fisheries and Livestock Adviser Farida Akhter on Tuesday said that nearly 85 percent of Bangladesh’s workforce is employed in the informal sector, yet most remain unrecognised and excluded from social protection.
Speaking at the Informal & Marginalised Formal Women Workers Convention 2025, organised by Oxfam in Bangladesh at a convention centre in Dhaka’s Tejgaon, she said the economy would not function without the contributions of tea workers, fishers, domestic workers and others in the informal segment.
She, however, noted that economists often focus solely on the formal sector, leaving the roles and contributions of informal workers largely overlooked, which in turn denies them proper recognition and rights.
Farida said women in informal and marginalised formal sectors have long faced social and economic exploitation, stressing that ensuring their rights is vital not only for their welfare but also for national development.
Extra climate funding needed for women entrepreneurs: Adviser Farida
“When we talk about workers, the issue of deprivation comes to the forefront. In reality, they lack recognition and rights, and despite their hard work and the exploitation they endure, they do not receive what they rightfully deserve,” she added.
The convention brought together women workers from tea gardens, fisheries, domestic work and garment production sectors, who announced the formation of the ‘National Non-unionised Women Workers Forum’.
19 days ago