Policy Brief
The tax-to-GDP ratio in Bangladesh has been exceptionally low, both absolutely and relative to the nation’s peers, for the last five decades. An excellent starting point for reform would be the World Bank’s recent proposals for enhanced revenue mobilization, which build upon the long-delayed reforms.
The share of tax revenue relative to GDP (i.e., the “tax-to-GDP ratio”) in Bangladesh has been well below 10% for the last five decades. Despite multiple commitments to raise the ratio by various governments (military, caretaker, multi-party democracy, single party) — each with financial and technical assistance from the country’s development partners — none has succeeded.
The recently installed interim government may no longer view these projections as relevant to its goals. Yet, none of what it appears that the interim government wishes to accomplish — stabilize the economy, promote recovery, and “reform” (or “reset”) the nation’s development agenda — will be achievable without substantively higher levels of domestic revenue than is now being raised. This will require a major increase in the tax-to-GDP ratio. This policy note reviews trends in that ratio and identifies some consequences for Bangladesh of its persistently low level. The note concludes with suggested remedies for moving forward.
Occasional Paper
This policy paper aims to provide an analysis of the current state of the solar power industry in Bangladesh, identifying the gaps and risks associated with the implementation of the government’s renewable energy goals.
Policy Brief
The challenge in this policy note is to look beyond the transitory factors in Bangladesh that have moved relative prices up (or down) to identify the longer-term factors that generate and sustain general price increases and to explain why those factors endure.
Policy Brief
This policy note discusses the macroeconomic difficulties in Bangladesh created by the counterproductive manipulation of the exchange rate from the mid-2000s and suggests potential remedies.
Occasional Paper
This policy paper aims to provide an analysis of the current state of the solar power industry in Bangladesh, identifying the gaps and risks associated with the implementation of the government’s renewable energy goals.
Policy Brief
The challenge in this policy note is to look beyond the transitory factors in Bangladesh that have moved relative prices up (or down) to identify the longer-term factors that generate and sustain general price increases and to explain why those factors endure.
Policy Brief
This policy note discusses the macroeconomic difficulties in Bangladesh created by the counterproductive manipulation of the exchange rate from the mid-2000s and suggests potential remedies.
