Bangladesh raises VAT to make tax-GDP ratio healthy

If the tax-GDP ratio dwindles, it may become impossible to repay the country’s debt, he cautioned.

This ratio has been going down since 2021 and has reached such a level this fiscal that there is a revenue shortfall of about Taka 42,000 crore in the last five months, Alam said.

The interim government is trying to cut public expenditure, he was cited as saying by domestic media outlets.

The government has also decided to raise taxes, Alam said, clarifying that the impact of the new taxes will be minimal on the people.

The government is tracing siphoned-off money and bringing laundered money back to the country is a top priority, he noted.

ALCHEMPro News Desk (DS)