According to IMF sources, authorities in Bangladesh have been asked to carry out major reforms in four key sectors – revenue, finance, energy and social security.
In the revenue sector, authorities need to reduce long-standing concessions in income tax, VAT and tariffs. A team led by Revenue Board member Shams Uddin Ahmed is already working in this regard and its results are expected to be reflected in the next budget.
According to the National Board of Revenue (NBR), tax concessions in the financial year 2020-21 were worth Tk 1258 billion, which included Tk 853 billion at the individual level and Tk 400 billion corporate tax concessions.