No Tax Collection Through Harassment, Promises Bangladesh Finance Minister

🏛 Dhaka, Bangladesh — Finance Minister Amir Khosru Mahmud Chowdhury has promised that the government will not collect taxes by causing inconvenience to businesses, pledging to consult taxpayers to build a business-friendly tax system and improve revenue collection.

💬 “Taxes paid by them keep this country running. Therefore, we have to listen to them. No tax will be collected by causing them inconvenience,” he told journalists after a meeting with National Board of Revenue (NBR) officials at Agargaon in Dhaka.

💬 The minister said the government wants to maintain an environment conducive to revenue collection while ensuring fair facilities and opportunities for businesses.

📱 Banglalink Meeting Earlier in Day

📊 Asked about his meeting earlier in the day with mobile telecom operator Banglalink, Khosru said the company has raised some issues, which were discussed.

💬 “We have to listen to those who pay taxes. We cannot remain detached from them,” he said.

📋 Monthly VAT Return Submission Proposal

📊 On a proposal to restore monthly VAT return submission after the filing frequency had been changed to once every three months, the minister said the government would consult taxpayers before developing a sound tax system.

💬 “The government’s goal is to maintain an environment conducive to revenue collection while ensuring fair facilities and opportunities for businesses,” he said.

💰 NBR Instructed to Recover Outstanding Dues

📊 A senior NBR official who attended the meeting told The Business Standard on condition of anonymity that the minister has instructed officials to place greater emphasis on recovering outstanding dues.

💬 “He has instructed us to place greater emphasis on recovering outstanding dues,” the official said. He added that the meeting also focused on increasing revenue collection by expediting the settlement of pending cases.

👥 The NBR chairman and other senior officials attended the meeting.

⚠ VAT Collection Shortfall in FY2026-27 First Two Months

📊 Journalists also asked the minister about a significant shortfall in VAT collection during the first two months of the current fiscal 2026-27 and the reasons behind it, but he declined to comment.

🌏 Strategic Context: Bangladesh Tax System Reform

📊 For Bangladesh’s tax system, the Finance Minister’s commitment to end harassment comes at a critical moment:

• 💰 Low tax-to-GDP ratio — Bangladesh among lowest in Asia
• 💰 VAT collection shortfall — first two months FY2026-27 below target
• 📊 Pending tax cases — Tk 2.06 trillion stuck in 138,686 cases
• 📋 Taxpayer complaints — long-standing concerns about harassment
• 📊 LDC graduation preparation — needs stronger revenue base

💰 Bangladesh Tax-to-GDP Ratio

📊 Bangladesh’s tax-to-GDP ratio is among the lowest in Asia:

• 🇧🇩 Bangladesh: ~7-8% (one of lowest in Asia)
• 🇻🇳 Vietnam: ~12-14%
• 🇮🇳 India: ~17-18%
• 🇨🇳 China: ~20-22%

📊 The low ratio reflects:

• 📋 Narrow tax base — small portion of population pays income tax
• 📋 Informal economy — large informal sector outside tax net
• 📋 Tax evasion — significant underreporting and avoidance
• 📋 Exemptions — numerous sector-specific tax breaks
• 📋 Enforcement challenges — limited capacity to pursue non-compliance

📋 Implications for Business Community

📊 For Bangladesh’s business community, the Finance Minister’s commitment offers several positive signals:

• 🤝 Reduced harassment — end to arbitrary tax demands
• 🤝 Taxpayer consultation — voice in policy formulation
• 📋 VAT return frequency review — potential return to monthly filing
• 💰 Outstanding dues focus — legitimate recovery rather than fresh harassment
• 📊 Pending case settlement — expedited resolution of tax disputes
• 💰 Business-friendly environment — stated government goal

💰 Outstanding Tax Dues Context

📊 The minister’s instruction to focus on outstanding dues recovery aligns with earlier findings:

• 💰 Tk 2.06 trillion stuck in 138,686 cases at 20 state-run banks and FIs
• 💰 Tk 1.11 trillion in cases at Janata Bank alone
• 📊 Top 100 cases identified for priority resolution
• 📊 FID Secretary Nazma Mobarek pushing for cash-outcome-linked lawyer performance

📈 Outlook: Bangladesh Revenue Mobilisation

📊 For Bangladesh’s broader revenue mobilisation agenda, the Finance Minister’s statements signal a strategic shift:

• 🤝 From coercion to consultation — engaging taxpayers rather than intimidating them
• 💰 From new demands to old dues — focusing on legitimate recovery
• 📊 From case backlog to case resolution — expediting pending settlements
• 📋 From quarterly to monthly VAT — potential return to better compliance frequency
• 🤝 From harassment to business-friendly — conducive environment for revenue growth

✅ For Bangladesh’s taxpaying community — particularly businesses, particularly mobile operators like Banglalink, and particularly SMEs that have long complained about harassment — the Finance Minister’s commitment represents an important shift in tone. If followed through with concrete policy changes and operational reforms at NBR, this approach could help improve voluntary compliance — which is ultimately more sustainable than coercive collection methods that erode taxpayer trust and discourage formal sector participation.

🌏 For the broader economy, a business-friendly tax system that combines reduced harassment with effective recovery of legitimate outstanding dues could help Bangladesh move toward its long-needed goal of improving the tax-to-GDP ratio — an essential foundation for financing infrastructure, social services and LDC graduation transition without excessive reliance on external borrowing. The coming months will reveal whether the Finance Minister’s words translate into concrete policy actions that reshape Bangladesh’s tax administration culture.