IMF-set tax-GDP ratio
Industry Desk: The National Board of Revenue (NBR) would need to increase its revenue collection by a total of Tk2,34,000 crore in the next three fiscals to take tax to GDP ratio to 9.5% as prescribed by the International Monetary Fund (IMF).
The Policy Research Institute (PRI) made the projection at a press briefing titled “Implications of IMF Loan Conditions on Domestic Revenue Mobilization” yesterday.
According to IMF calculations, the tax to GDP ratio in FY21-22 was 7.8% against a revenue collection of Tk3,01,000 crore.
The government set a target of revenue collection at TK3.70 lakh crore for FY22-23, which the PRI thinks is achievable.
Even if the target for FY22-23 is met, NBR needs to collect Tk65,000 crore more to raise the tax to GDP ratio to 8.3% in FY23-24.
PRI Executive Director Dr Ahsan H Mansur and Research Director Dr MA Razzaque presented the details of the projection.
Dr Ahsan H Mansur said that it is very difficult to collect this amount of revenue, but there is no other alternative.
At this point, he also said that if the major reforms are not completed, the upcoming installments may be halted, which has occurred in the past.
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