Commerce Minister Khandaker Abdul Muktadir said the government has no plan to raise taxes on the private sector, clarifying that recent remarks by the finance minister regarding the tax-to-GDP ratio had been misinterpreted.
Addressing journalists after a view-exchange meeting with local administration officials at the Sylhet Circuit House, Khandaker Abdul Muktadir stated that the discussion centred on improving Bangladesh’s tax-to-GDP ratio rather than imposing additional tax burdens on businesses.
He said Bangladesh’s tax-to-GDP ratio remains significantly lower than that of neighbouring countries, limiting the government’s fiscal capacity. According to the commerce minister, a substantial portion of collected revenue is currently used to meet routine government expenditure, leaving limited resources for development projects.
“The finance minister referred to increasing the tax-to-GDP ratio, not raising taxes on the private sector,” he said, emphasising that the private sector remains a key driver of economic growth, industrial expansion and employment generation.
The clarification comes amid concerns among business leaders about potential fiscal tightening measures. Policy analysts note that strengthening revenue collection without discouraging private investment is critical as Bangladesh prepares for post-Least Developed Country (LDC) graduation challenges.
Khandaker Abdul Muktadir also said that steps have been initiated to secure preferential trade arrangements ahead of LDC graduation. A formal letter has been sent to the European Union seeking a Free Trade Agreement to safeguard export competitiveness. He added that phased initiatives will follow to pursue similar agreements with Australia, Canada and the United Kingdom.
On market conditions, the commerce minister said prices during the holy month of Ramadan remain stable. He acknowledged that prices of certain items, including lemons, rose sharply in the first few days of Ramadan but have since normalised following market monitoring efforts.
He further assured that all outstanding wages and salaries of industrial workers would be cleared before Eid-ul-Fitr, signalling government oversight to maintain labour stability in the industrial sector.
Expatriates’ Welfare and Overseas Employment and Labour and Employment Minister Ariful Haque Choudhury and Water Resources Minister Shahiduddin Chowdhury Anne attended the meeting. Following the discussion, the ministers visited erosion-affected areas along the Surma River and Chenger Khal River to assess local conditions.
The government’s position on tax policy comes at a time when fiscal sustainability, trade diversification and export competitiveness remain central to Bangladesh’s economic policy agenda.
