Prime Minister’s Adviser on Finance and Planning Rashed Al Mahmud Titumir on Sunday said the government intends to tackle the current economic challenges by boosting revenue collection rather than relying on new loans.
Speaking at a press briefing at the National Board of Revenue (NBR) in the capital’s Agargaon after a meeting with a revenue mobilisation taskforce, Titumir said that while government spending on maintaining uninterrupted fuel supply has nearly doubled due to tensions in the Middle East, borrowing will not be used to cover the additional costs. Instead, authorities will focus on expanding the tax base and ensuring better compliance.
“We will not raise tax rates. Our goal is to bring more people under the tax net and monitor evasion effectively,” he said.
The adviser highlighted that Bangladesh’s tax-to-GDP ratio has remained below 7 per cent, significantly lower than neighbouring countries such as India, Sri Lanka and Pakistan, which maintain ratios above 10 per cent.
He noted that external debt pressures and the global fuel price volatility caused by the Middle East situation have added further strain to the economy.
Titumir said the government plans to intensify efforts to meet revenue targets over the next three months, emphasising that aggressive revenue mobilisation is central to addressing the crisis.
He criticised the previous administration, alleging that past revenue figures were often inflated, which weakened the tax system and exacerbated poverty.
He also noted that the government has expanded social safety net initiatives, including Family Cards and Farmer Cards, to support vulnerable populations.
“Our aim is to raise the tax-to-GDP ratio to 10 per cent in the current term and, if re-elected, 15 per cent in the next,” he said, adding that three dedicated taskforces are actively working to curb tax evasion and fraud.
Titumir ruled out any immediate hike in fuel prices, explaining that higher costs would increase irrigation expenses for the upcoming Boro season, raise production costs and fuel inflation.
