Some 60% of individuals who submitted electronic tax returns disclosed no taxable income, as revealed by former finance adviser Salehuddin Ahmed during a recent discussion. Ahmed expressed astonishment at the statistic, noting that 60% of the population did not reach the income threshold for taxation during his tenure, which stood at Tk 3,50,000. He highlighted the reluctance of citizens to file taxes as a key factor contributing to the poor tax collection performance of the National Board of Revenue (NBR).
Speaking at a seminar on the upcoming budget for the fiscal year 2026-27, organized by the Department of Economics at Independent University, Bangladesh (IUB), Ahmed also addressed the resistance within the NBR towards adopting automation and digitization to enhance tax collection. He suggested that the lack of motivation for taxpayers to visit NBR offices could be attributed to the potential for officials to accept bribes, a situation less likely under digital systems.
During his discussion, Ahmed mentioned identifying 11 significant cases of money laundering abroad during the interim government’s tenure, with successful recovery anticipated within three to four years. He also recounted an incident involving Indian conglomerate Adani temporarily disrupting electricity supply to Bangladesh, which resumed following a payment of Tk 100 crore facilitated by the finance ministry through the energy department.
Ahmed criticized the terms of agreements with both Adani and the Rampal power plant, emphasizing the need for scrutiny. Regarding the proposed budget for FY27, he acknowledged the rationale behind an expansionary budget with a deficit of 3.6% of GDP in line with the government’s objectives. However, he cautioned that the NBR’s revenue target appeared overly ambitious considering the current limitations in capacity and tax structures.
While commending the government’s focus on allocating resources to social sectors such as education, health, and social security, Ahmed stressed the importance of effective utilization and monitoring of these allocations. Joining the discussion as a panelist, Shamsuddin Ahmad, a former senior financial sector specialist at the World Bank, recommended the recruitment of a sufficient number of energy auditors to promote energy efficiency and transparency in the sector, linking efficient energy utilization and pricing to the country’s development.
The seminar also featured insights from energy and sustainable development expert Ijaz Hossain, former Buet professor, and Md Fardous Alom, a joint secretary at the Ministry of Finance. The event was moderated by Shahriar Kabir, professor of Economics at IUB.
