Photo: Star
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Photo: Star
The tax collection target set for the National Board of Revenue (NBR) was not determined scientifically or based on realistic projections but rather to align with the ambitious spending goals of the national budget, NBR Chairman Abdur Rahman Khan said today.
As a result, the tax authority failed to meet its target, forcing the government to borrow to cover expenditures, increasing the country’s debt burden, he said.
For all latest news, follow The Daily Star’s Google News channel. Khan made the remarks at a seminar titled “Domestic Revenue Mobilisation”, jointly organised by the Economic Reporters’ Forum (ERF) and Research and Policy Integration for Development (RAPID) at the ERF auditorium.
“Historically, the government has relied on high tax collection targets to finance ambitious spending plans, often exceeding the realistic revenue-generating capacity of the economy,” he said.
Since the country has sought loans from foreign lenders, they have imposed various conditions to ensure repayment, some of which are particularly challenging for Bangladesh, he added.
“The government has no choice but to accept these terms. This is the consequence of persistently framing ambitious budgets that do not align with the economy’s capacity,” Khan said.
M Abu Eusuf, executive director of RAPID, Doulot Akter Mala, president of ERF, and Shawkat Hossain, head of online at Prothom Alo, also spoke at the event.
