Taxation Challenges for Bangladesh

Sams Uddin Ahmed

Commissioner of Taxes
Government of the People's Republic of Bangladesh
[email protected]

Abstract
The purpose of this article is to identify the major taxation challenges for Bangladesh. It is observed that
Bangladesh, being the member of developing country club, is making progress in mobilizing internal resources,
but it has some areas for further improvements. Bangladesh has graduated to the middle income earner
country, therefore, it is now on its own in terms of collecting the revenue to finance development projects
for providing public goods. Findings suggest increasing capacity of tax administrations and taking effective
initiatives to reform the taxation system in an environment where taxation reforms are not politically
influenced.
Key Words : Taxation, Challenges, Tax Administration, Tax Policy, Reform, Bangladesh.

Part-I : Introduction
Taxation remains vital to fund the public goods and for the growth of the economy of a country. Taxation is
the main source of government revenue. Taxation is also important to shape the relationship between the
state and the citizens (Carnahan, 2015). It is even argued by some that the state taxpayer relationship is a
fiduciary one (Ahmed, 2016).While developed countries have been able to mobilize much needed revenue
for the welfare of the citizens and spend for development works, developing countries like Bangladesh are
not making remarkable progress in the field. Besley and Persson (2013) state, “In the process of development,
states not only increase the levels of taxation, but also undergo pronounced changes in patterns of taxation,
with increasing emphasis on broader tax bases, i.e., with fewer exemptions. Some taxes — notably trade taxes
— tend to diminish in importance. Thus, in the developed world taxes on income and value added do the
heavy lifting in raising sufficient revenue to support the productive and redistributive functions of the state.”
It is observed that revenue collection have been growing in most of the low- and lower-middle-income
countries over the last decade, both in absolute figures and as a percentage of the GDP. But the growth
remains inadequate to meet up the financing needs of the SDGs, estimated at USD 2.5 trillion per year for
developing countries alone, according to UNCTAD figures. Moreover, developing countries must face the
decline of financial flows from international public and private sources by 12 % between 2013 and 2016

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(OECD, 2018). It is further noted that overall tax-to-GDP ratios have not changed remarkably on average
since the early 1980s (Oliver, 2013). Bangladesh is no exception. Under the circumstances it is imperative
that Bangladesh makes substantial progress in mobilizing internal resources to meet the challenges of SDGs.
However, as a developing country Bangladesh faces some challenges to overcome to achieve its revenue goals
by successfully mobilizing internal resources. The purpose of this article is to identify the revenue challenges
for Bangladesh and analyse the same with a view to shedding some lights on them. The article is arranged
as follows. Part I gives an introduction. Part II deals with the issue of the necessity of revenue to augment
economic development to achieve the SDGs. Part III discuss the challenges that Bangladesh faces in collecting
internal revenue. Part IV highlights some recent initiative of the Bangladesh tax administration towards
reforming the system. Part V makes some concluding remarks.

Part-II : Necessity of Tax Revenue to Augment Economic Development

Though taxation might not be the only factor that contributes to the economic development of a country,
there should not be any gainsay that taxation has immense impact on that. In the wake of the Second World
Waras more state participation in the state economy is demanded, governments had to increase public
expenditure and go for the concept of welfare state (Dom and Miller, 2018). There are several theories that
discuss the relationship between economic growth and taxation though no theory is conclusive. It is observed
that tax revenue as a proportion of GDP has risen remarkably in the developed countries in course of time,
but the level of growth shows a stable condition. The conclusion of this finding is that economic growth is
not effected by taxation (Myles, 2000). Empirical studies regarding the relationship between taxation and
development or economic growth provide mixed results. But for the government there is hardly any avenue
rather than taxation to fund public goods and pay for development works. The truth becomes obvious when
one looks at the tax to GDP ratio of the developed countries. The tax to GDP ratio of some developed and
OECD countries are mentioned below for an easy grasp of the issue.
Table : Summary of key tax revenue as % of GDP ratios in the OECD

Countries 2000 2015 2016 2017

Average 33.8 33.7 34.0 34.2

Australia 30.5 27.9 27.8 -

Austria 42.3 43.1 42.2 41.8

Belgium 43.5 44.8 44.1 44.6

Canada 34.8 32.7 32.7 32.2

Chile 18.8 20.4 20.2 20.2

Czech Republic 32.4 33.3 34.2 34.9

Denmark 46.9 46.1 46.2 46.0

Estonia 31.1 33.3 33.7 33.0

Finland 45.8 43.9 44.0 43.3

France 43.4 45.3 45.5 46.2

Germany 36.2 37.0 37.4 37.5

Greece 33.4 36.6 38.8 39.4

Hungary 38.5 38.7 39.2 37.7

Iceland 36.3 36.3 51.6 37.7

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 Ireland 30.8 23.1 23.3 22.8

Israel 34.9 31.3 31.3 32.7

Italy 40.6 43.1 42.6 42.4

Japan 25.8 30.6 30.6 -

Korea 21.5 25.2 26.2 26.9

Latvia 29.1 29.2 30.4 30.4

Lithuania 30.8 28.9 29.8 29.8

Luxembourg 36.9 37.1 38.1 38.7

Mexico 11.5 15.9 16.6 16.2

Netherlands 36.9 37.0 38.4 38.8

New Zealand 32.5 31.6 31.6 32.0

Norway 41.9 38.4 38.7 38.2

Poland 32.9 32.4 33.4 33.9

Portugal 31.1 34.4 34.3 34.7

Slovak Republic 33.6 32.2 32.4 32.9

Slovenia 36.6 36.4 36.5 36.0

Spain 33.2 33.6 33.2 33.7

Sweden 49.0 43.1 44.0 44.0

Switzerland 27.6 27.6 27.8 28.5

Turkey 23.6 25.1 25.3 24.9

United Kingdom 32.9 32.2 32.7 33.3

United States 28.2 26.2 25.9 27.1

Source : Data from OECD Revenue Statistics 2018

The tax to GDP ratio in the developed countries speaks for the fact that taxation is sine qua non for
development. The developing countries very often struggle to finance the public goods and development
works because of the lack of finance.Taxation, no doubt, provides the main source of finance.The tax to GDP
ratio in developing countries remain low.That means the developing countries cannot mobilize enough internal
resource to spend for the public goods.The OECD states,‘Increased domestic resource mobilisation is widely
accepted as crucial for countries to successfully meet the challenges of development and achieve higher
living standards for their people. Additional tax revenues enable governments to simultaneously strengthen
infrastructure development, enhance the quality of education and promote social cohesion.’ Regarding the
internal resource mobilization in developing countries, particularly in Asian countries, the OECD (2017) states,
‘Tax-to-GDP ratios continue to vary widely across Asian countries. While some countries have experienced
a decline in tax revenues in recent years, tax-to-GDP ratios have increased in most countries since 2000. In
spite of these increases, further efforts are needed to increase tax revenues in developing countries in the
region to support domestic resource mobilisation.’ However, for the economic development of a country
tax to GDP ratio should touch the minimum threshold. According to the IMF the threshold should be around
15% marks. Smith (2018) states, ‘Both the IMF and OECD clearly believe that the tax-to-GDP ratio matters. It
is a straightforward measurement, perhaps crude as a result, but it can give a clear indication of the direction
of travel of tax policy and administration in any given country, which can then be used to measure against

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economic growth and development.’ It is observed internal resources are multiple. The revenue
that tax to GDP ratio in developed OECD countries collection is still dominated by indirect taxes while
is much higher than the developing countries although direct tax plays the vital role in developed countries.
there is difference among the OECD countries Be that as it may, the current revenue challenges for
regarding tax to GDP ratio. But the developing Bangladesh are briefly discussed below:
countries, though experiencing some improvement,
have to work hard to achieve the expected level of 1. Narrow Tax Base
tax to GDP ratio. While the developed countries It is observed earlier that tax to GDP ratio in
collect tax around 40 percent or more revenue developing countries is much lower than in
the developing countries typically collect taxes of developed countries. The Ramphal Institute
between 10-20 percent of GDP.OECD (2017) noted notes, ‘In many developing nations, both within
that in spite of the increase in tax to GDP ratio in and outside the Commonwealth, a small and
the developing countries, particularly the Asian under-developed tax base represents a major
countries, further efforts are imperative to augment obstacle to the progression of both access to
tax revenue in developing countries to pave the way and quality of services for citizens. The wealthiest
for internal resource mobilization that will provide members of national populations, who make
for further expenditure in areas like infrastructure, up a small proportion of the total population,
health and education. Increase in the tax GDP ratio often avoid paying what can be seen as their fair
speaks for the ability of the countries in collecting share of tax, denying governments much needed
much needed tax revenue and to spend the same revenue. Conversely a much larger proportion
for development works. Chris Morgan, KPMG’s of the population work in the informal economy,
global head of tax policy states, ‘Research by the outside the remit of regulatory structures, they
IMF shows that once a tax-GDP ratio gets above receive no formal protection and are not taxed
around the 15% threshold, this creates a platform for their work.’ Bangladesh has a very narrow
for investment. It means there is sufficient revenue tax base. The tax to GDP ratio was 11.17 per
collected in order to invest in infrastructure and cent in 2016-17 and that remains one of the
education, for example, and this can have a massive lowest in the world. The tax administration in
effect on an economy.’ While developing countries Bangladesh is characterised by the dominance
are constantly trying to increase the collection of of large informal sector that contributes to the
tax revenue, they are facing multiple problems in poor tax base of the country.The rate of informal
their efforts to raise revenue. The recent growing economy in Bangladesh stood at 27.60% in 2015
concern is the insufficient international tax policy. (Medina and Schneider, 2018). Agriculture sector
Because of the gaps in the international taxation virtually remains outside the tax net. Tackling
rules, the Multinational Corporations (MNCs) are informal economy is very difficult on the part of
avoiding huge amount of revenue while their income the tax administrations of developing countries.
are sourced in the capital importing i.e., developing Very often tax administrations of developing
countries. It is estimated that because of the countries are considered poor and inefficient
insufficient international tax policies the developing for numerous reasons. Alm et al (1991) state,
countries lose at least $100bn a year (Rolling, 2018). ‘It is widely believed that the tax base in most
developing countries has been severely eroded
by legal tax avoidance and illegal tax evasion,
Part-III : Challenges for Bangladesh brought about largely by poor tax administration.’
Although the tax administrations of the
in Mobilizing Internal Revenue
developing countries are branded as inefficient,
Being a developing country Bangladesh tax
of late Bangladesh tax administration has made
administration faces formidable challenges in
remarkable progress in terms of collecting the
mobilizing internal resources in terms of tax
revenue against the revenue collection target
revenue. Mahmood (2019) states, ‘The mobilisation
as set by the government. Reform programs are
of domestic resources still remains a key challenge
ongoing with a number of projects on direct and
for Bangladesh to achieve its economic and social
indirect taxes. It is expected that Bangladesh tax
objectives.’ The challenges and problems of mobilizing
administration can build up its capacity to deal,

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 inter alia, with the challenge of informal economy Dhaka in November 2017, within one year of its
by enlarging the tax base. It is suggested that it is launch (Dhaka Tribune, June 7, 2018). Like other
possible to expand the tax base by encouraging countries, the tax authority of Bangladesh also
the formal sector.Auriol and Warlters (2004) has started to consider the tax potential of the
suggest, ‘[B]y creating a special status for small online sectors. In June 2018, the National Board of
entrepreneurs (e.g., without limited liability) Revenue (NBR) has introduced a 5 percent value
associated with discounted entry fees and some added tax (VAT) on ride-sharing service providers.
benefits (for example, easier access to micro- Finance Act 2018 introduced the provision for tax
credit or to electricity connection) governments to be deducted at source under Section 52AA of
of poor countries may increase their taxation the Income Tax Ordinance, 1984, on apps-based
bases.’ Bangladesh can think of such measures ride sharing services at the rate of 3%-4% based
that would help expanding the tax base. on the base amount, by the ride sharing service
provider. Although Bangladesh is making gradual
2. Taxing Digital Economy progress in terms of its capacity building, but to
The world economy is experiencing fast tackle the serious issue like taxation of digital
track digitalization. Developing countries like economy will take time. It is expected that with
Bangladesh is not an exception. Like many other international cooperation Bangladesh will be able
developing countries Bangladesh is putting to build requisite capacity to tackle the problems
emphasis on the digital economy. Gradually arising from digital economy taxation.
Bangladesh is becoming a global market for digital
outsourcing (Zaman, 2019). According to OECD 3. MNCs Tax Avoidance and International Tax
(2015), ‘The digital economy if the result of a Rules
transformative process brought by information Another big challenge for Bangladesh tax
and communication technology (ICT), which has administration is to combat the problem of
made technology cheaper, more powerful and tax avoidance and evasion by the Multinational
widely standardised, improving business processes Corporations (MNCs) operating in Bangladesh.
and bolstering innovation across all sectors of the The problem of tax avoidance by MNCs is a
economy. ‘The digital economy poses a broader problem sans frontier. The MNCs exploit the
challenge for the policy makers in that it relates loopholes of the international taxation rules and
to nexus, data and characterisation for direct avoid huge amount of tax revenue to the detriment
tax purposes. It poses another major challenge of the capacity of the states to provide for public
of implementing Value Added Tax (VAT) covering goods. For example, in 2009-2013, Amazon,
the transactions where goods, services and Google and Starbucks paid a combined total of
intangibles are acquired by private consumers only £57.7 million despite revenues of nearly
from offshore suppliers (OECD, 2015).According £32 billion over the same period. Only 0.18% of
to BEPS action 1 the digital economy involves the revenues were paid in corporation tax (Connell,
issue of unparalleled reliance on intangibles, the 2014). It is estimated that global revenue losses
massive use of data, the use of multi-sided business due to tax avoidance by corporations could be
models acquiring values from externalities up to $600 billion each year with approximately
created by free products and difficulty to identify $400 billion in developed countries (Sikka, 2018).
jurisdictions where the income is sourced. One of the means of tax avoidance by the MNCs
These issues poses a formidable challenge for is the transfer pricing. Transfer pricing refers
the tax administrations of Bangladesh. It is to to non-arm’s length international transactions
be mentioned here that recently Bangladesh between associated enterprises. This has the
enacted legal provisions to tax digital economy. effect of negatively impacting the revenue base.
For example Ride-sharing services such as Uber, This affects much the developing countries.
Pathao, Sohoz are operating in the major cities For example, approximately $100 billion of tax
of Bangladesh, particularly Dhaka and Chittagong. revenue lost by developing countries annually
The US-based Uber Technologies Inc. launched because of transfer pricing activities from 2002
their ride sharing service in Dhaka in 2016. to 2006(Hollingshead, 2010). Report on transfer
Number of users of Uber increased to 200,000 in pricing by the MNCs reveal that during 2008

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 to 2012 income tax year the Indian income tax of a withholding regime or as a separate stand-
authority made transfer pricing adjustment to alone requirement in relation to a prescribed
the tune of $15.42bn. Glaxo Smyth Kline paid category of payments. Such reports, where they
$3.4 billion to the IRS due to transfer pricing are systematically matched with tax records,
adjustment since 1989 (Hilzenrath, 2006). In 2012 enable the revenue body to verify the amount of
the Hungarian tax department unearthed 160 income reported by taxpayers in their returns,
million Euros from transfer pricing adjustments. to identify potential discrepancies, and to identify
In2013Vietnamese tax administration made non-filers.’ According to Brooks (2001) TPIR is
a transfer pricing adjustment at an amount the most effective way to ensure tax compliance.
of $110m. In 2011-2012 the Colombian tax Under this system third party payers are required
administration collected 9.13 million US dollar as to send the information of the payments to the
a result of transfer pricing adjustment (Loeprick, tax authority. The tax authority then matches the
2015). So it is quite understandable to what extent data with that of submitted by the taxpayers. This
revenue is avoided by the MNCs due to transfer system makes the income visible and discourages
pricing activities.Though no data is available, it can non-compliance. Alm et al (2004) finds that
be anticipated that Bangladesh is also losing huge taxpayers who earn relatively more non-
amount of revenue due to transfer pricing by the matched income are less compliant compared to
two hindered MNCs operating in Bangladesh. individuals who earn relatively less non-matched
income. Tax information reporting provides
Keeping in mind the gravity of the problem,
valuable information about the taxpayers’ income
Bangladesh enacted transfer pricing law in 2012
that is being used by the tax authorities to ensure
with effect from tax year 2014. The TP rules in
voluntary compliance. It is observed that in the
Bangladesh have been framed like the OECD and
IRS taxpayers with income subject to information
the UN TP guidelines. The transfer pricing law
reporting are more compliant than the income
in Bangladesh, inter alia, made rules to conduct
not subject to reporting system. For example
transfer pricing audit after the MNCs submit
income subject to 100 % reporting system
statement if international transactions. But the
shows 99% compliance rate while income that
fact remains that Bangladesh has not yet been
is not subject to reporting system shows 37%
able to go for audit due to lack of capacity and
compliance rate (Lederman and Dugan, 2019).
logistics. In the meantime the OECD is imparting
Currently Bangladesh income tax law contains
training to the officers of the tax department to legal provision regarding information reporting.
build the capacity.The National Board of Revenue Section 75B of the Income Tax Ordinance 1984
(NBR) set up a separate transfer pricing cell to states, ‘Government may, by notification in the
deal with the transfer pricing cases. The Finance official gazette, require any person or group of
ACT 2019 made the provision of a new return persons responsible for registering or maintaining
for the companies that contains separate column books of account or other documents containing
requiring to furnish statement of international a record of any specified financial transaction,
transactions along with the return. It is hope under any law for the time being in force,
d that the new provision will help auditing the to furnish an Annual Information Return, in
transfer pricing cases in a more effective way. respect of such specified financial transaction.
The Annual Information Return referred to in
4. Poor Third Party Tax Information Reporting sub-section (1) shall be furnished to the Board
System or any other income tax authority or agency, in
Third party information reporting (TPIR) is a such form, manner and within such time as may
tax enforcement tool that is widely used by the be prescribed.’ The present information regime
tax administrations around the world. OECD is narrow in scope and the NBR retains the
(2009) states, ‘Information reporting obligations discretion to decide whether return should be
‘refer to a legislated requirement on the payers sent to it or not. The tax administration should
of income to report periodically to the revenue craft a comprehensive tax information regime
body relevant information (e.g. name and so that voluntary compliance can be ensured by
identification number of payee and amount and encouraging formal economy in the country. This
date of payment), either as an integral component remains a challenge for Bangladesh.

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5. Poor Tax Culture knowledge gap, removing tax law complexities,
To ensure sustainable development of a country removing corruption, encouraging formal
tax culture is vital (UNDP, 2008). Tax culture economy and by strengthening the enforcement
reflects the taxpaying mentality or compliance measures of the tax laws.
mentality of taxpayers of a country. Tax culture
is country specific and it is developed over the
Part-IV : Recent Initiatives of
years in a gives society and becomes blended
with the customs and habits of the people of the
Bangladesh Tax Administration
society. It is a phenomena. Nerre (2001) defines Recently Bangladesh has graduated to the rank
tax culture as follows: of middle income earner country club. Under the
circumstances foreign aids are no more available
A country-specific tax culture is the entirety
for Bangladesh. Bangladesh is now on its own.
of all relevant formal and informal institutions
There is no other alternative for Bangladesh
connected with the national tax system and
than to strengthen the process of mobilizing
its practical execution, which are historically
internal resources. Bangladesh has to go a long
embedded within the country’s culture, including
way in terms of revenue collection to achieve the
the dependencies and ties caused by their ongoing
sustainable development goals (SDGs). Though tax
interaction.
administration in Bangladesh has not been able
Poor tax compliance reflects a poor tax culture. to expand the tax base to a remarkable extent, it
It is observed that developing countries like has not stopped in its endeavour. Bangladesh took
Bangladesh face a formidable challenge to some important initiatives to augment the revenue
improve revenue collection in an efficient, fair collection and increase the tax to GDP ratio to the
and consensual way. One of the factors of such expected level. Following is a brief account of some
challenge is poor tax culture (IMF et al 2011). of the initiatives taken by the NBR to reform the
Poor tax compliance indicates poor tax culture. In taxation system:
Bangladesh tax culture is considered as the regular
payment of tax. This becomes evident when the 1. Introduction of New VAT Law
Prime Minister of Bangladesh Sheikh Hasina, on Introduced in France for the first time, Value
the eve of the national tax day in 2010, called the Added Tax (VAT) was introduced in Bangladesh
people of Bangladesh to develop a tax culture by in place of Sales Tax in 1991. The purposes of the
paying taxes regularly, which is a precondition for introduction of the new VAT were to replace
economic and social development (The Daily Star, the old age sales tax, mobilize more internal
2010).Bangladesh’s poor income tax compliance revenue, to introduce a single flat rate covering
indicates the country’s insufficient tax culture. a wide range of goods and services production,
The picture becomes clear when one looks and ensure equity by bringing transparency
into the statistics of return and tax payments. and accountability in the taxation system of
At present, 3.1 million people hold Taxpayer’s Bangladesh (Lalarukh and Chowdhury, 2013).
Identification Numbers (TIN) and of them, 1.6- However, because of some inherent defects it its
1.7 million submit tax returns. It is estimated that application, the old VAT Act has been replaced
there are at least, eight million taxable people in by the VAT Act of 2012 which came into effect
the country (Dhaka Tribune 2017). Neighbouring from 1 July 2019. It is expected that the new VAT
country India has 95 million taxpayers (Mishra Act would be able to collect more VAT than its
& Prasad 2018). Tax ratio to Gross Domestic predecessor did.
Product (GDP) in Bangladesh is 11.17% which is
one of the lowest in the region. So lack of tax 2. The New Direct Code
culture poses a formidable challenge for the The NBR has taken an initiative to modernize the
tax administration of Bangladesh. Under the direct tax laws by adopting the new direct tax
circumstances it is imperative that Bangladesh code. Income tax was imposed under the Income
takes initiative to improve tax culture by inciting Tax Act 1922 and the Act continued up to 1984.
patriotism among the citizens, by removing The 1922 Act was very complicated. So to simplify

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 the income tax law Government of Bangladesh of Bangladesh the government of Bangladesh
set up a commission to prepare a report on has decided to go for another expansion of the
income tax law. At the suggestions of the inquiry income tax department. At the same time the
commission the Income Tax Ordinance 1984 same expansion programme is underway in the
was enacted. The Act is still in operation. On indirect tax administrations of the NBR.
the other hand Gift Tax Act 1990 is in operation
to impose gift tax on the property gifted. Travel 4. Alternative Dispute Resolution System
tax is also collected from the passengers who The Finance Act, 2011 has incorporated ADR
travel abroad. The Income Tax Ordinance 1984 is provisions for dispute resolution in income tax,
also considered complicated. So to remove the VAT and customs. By ADR mechanism, the NBR
complicacies and make the income tax law at per and taxpayers can settle their differences with the
with the international best practice, the NBR is help and guidance of an umpire called facilitator.
currently working on the introduction of a new In the field of income tax the Finance Act 2011
income tax law. At the same time to make user inserted a new chapter XVIIIB alternative
friendly the gift tax act and the travel tax act all dispute resolution. Section 152A to 152S deal
will be included within the new income tax law with the detailed provisions of alternative
known as the Direct Tax Code. It is expected that dispute resolution between the taxpayer and
the new Code will be implemented soon. the department. The ADR system is successfully
running in the direct tax administrations.
3. Expansion of Income Tax Department
In 1992 the income tax department saw the first 5. BITAX Project
expansion. Some new taxes zones were created The BITEX project is an ongoing project in the
and post of the required officers and human field of direct taxes set up to facilitate on line
resources were created. The first ever expansion return submission by the taxpayers. Provision is
of the income tax department was a success in also there to make offline entries of the returns
terms of mobilizing direct taxes in the country. submitted manually.
After that in 2003 Large Taxpayers Unit (LTU) was
6. Reforms in the Customs Administration
set up to provide services to the large taxpayers
To collect customs duty, the Customs Act 1969
who pay most of the income tax in a year. The
is now in operation in Bangladesh. In order to
government has designated the Large Taxpayers
accommodate the trade facilitation provisions
Unit as the pilot zone for the implementation
of the WCO Revised KYOTO Convention and
of the reform in direct tax. The establishment of
the WTO Trade Facilitation Agreement, the NBR
the LTU is considered as a success in ensuring
has undertaken a task to amend its existing
taxpayer friendly environment, facilitate smooth Customs Act. Accordingly, a new Customs Act
one stop taxpayer service, reducing compliance in Bangladesh will be enacted soon. The new
cost and building a relationship of trust and Customs Act will be a major reform in the field of
confidence between the taxpayer and the customs administration. The new act will improve
department among others. Besides the LTU the customs regime through automation.The new
Income Tax, VAT LTU has been in operation law would facilitate the traders for submission
in Bangladesh that collects VAT from big 170 of electronic declarations for exports and
business organisations. However, in 2012 there imports, electronic submission of advance cargo
was an expansion programme of the income tax declarations for imports and introduce green
department in which some new taxes zones were channel for honest traders. Besides currently
created, new posts of officers and other human customs departments are running some customs
resources were created. The expansion has been modernization projects with the help of the
a success. The purpose of the expansion was World Bank group.
achieved evidenced by the contribution of the
income tax to the exchequer. A new expansion
programmes is underway. To keep pace with the Part-V: Conclusion
growing economy and to expand the tax base Bangladesh, being a developing country faces some
at the base level of the geographical locations daunting challenges in mobilizing internal revenue.

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21 THE COST AND MANAGEMENT

ISSN 1817-5090,VOLUME-47, NUMBER-04, JULY-AUGUST 2019