Due to the incompetence of tax administration, the government's loss in revenue collection ranges from a minimum of Tk 55,800 crore to a maximum of Tk 2,92,500 crore annually, according to study of Centre for Policy Dialogue (CPD) published on Monday.
Among the total size of the economy of Bangladesh, around 30.2 percent is informal or shadow economy. As this vast transaction is out of the purview of the tax administration, the government is losing this huge revenue.
The CPD study also found that around 68 per cent of people do not pay income tax even after earning taxable income.
The CPD, a think tank, presented the study in a media briefing at its Dhanmondi office.
The study has been entitled “Corporate Tax Transparency Issues and Concerns in Bangladesh Its Implications on Tax Losses and Social Spending.”
Khondaker Golam Moazzem, research director of CPD, presented the research paper. CPD executive director Fahmida Khatun moderated the programme.
He said, the size of the informal sector in Bangladesh is 30 per cent of GDP. The amount of tax in the informal sector was Tk220 billion in 2010, which increased to Tk 840 billion in 2021.
