Govt eyes 5-year tax policy framework: Adviser Titumir

To bolster investor confidence and ensure greater predictability in economic policy, Rashed Al Mahmud Titumir, economic and planning adviser to the prime minister, said the government is considering a stable, five-year tax policy framework.

“The low-level equilibrium trap in our revenue is a result of technical fixes that have ignored political realities. The government is set to move away from a techno-centric tax approach that has not served the country well, toward a politically accountable revenue administration aimed at eliminating taxpayer harassment and stimulating private sector growth,” he said.

Speaking at a pre-budget dialogue, the adviser emphasised that the government aims to meet its revenue targets not by increasing existing tax rates, but by broadening the tax base and ensuring policy consistency over the next five years.

The dialogue was organised by the Power and Participation Research Centre (PPRC) at the capital’s Shilpakala Academy today (16 May).

Addressing the dialogue, policymakers, business leaders, and global lenders called for a new social contract where taxpayers clearly see the benefits of their contributions.

Speaking as the special guest, NBR chairman Md. Abdur Rahman Khan acknowledged the long-standing complaints regarding administrative harassment. He detailed a massive digitalisation drive to make the tax process human-interaction-free.

“The only way to end harassment is to make the system faceless. We have already received 45 lakh e-returns this year. We are moving toward a paperless customs and risk-based audit system where human discretion will be minimised,” Khan said.

On tobacco taxation, he said the NBR plans to tighten monitoring of cigarette manufacturers from next year to combat illicit trade and tax evasion. The revenue authority will introduce upgraded tax stamps with QR and AR codes, enabling consumers to scan and verify whether taxes have been paid on products.

Syed Nasim Manzur, managing director of Apex Footwear, offered a sharp critique of the prevailing culture, describing it as “tax terrorism.”

“Growth promotion means job creation. People don’t want to pay taxes for two reasons: fear of harassment and lack of transparency on how the money is spent,” said Manzur.

He urged the NBR to stop ‘catching the same fish in the same net’ and instead expand the tax base. “We need the base to become bigger, not just the net. There are so many low-hanging fruits like luxury cars and flats that remain outside the net.”

World Bank acting division director for Bangladesh and Bhutan Dr Gayle Martin warned that the current revenue model is reaching its limits. She noted that real GDP growth has slowed while public credit growth has risen, leaving the private sector subdued.

“We cannot have a situation where several times more revenue is lost through VAT exemptions than is actually collected. DRM (Domestic Resource Mobilisation) reforms are central to macro-stability. Rationalising the exemption list is the fastest way to raise revenue,” Martin said, adding that the poor must be protected from regressive tax effects.

The session was chaired by PPRC executive chairman Hossain Zillur Rahman, who framed the crisis as a triple challenge of underperformance, evasion, and harassment.

Revenue mobilisation is not a standalone goal, it must signal social progress as well, said Zillur.

“We need a solution-centric discourse where process efficiency and the social contract are optimised. The citizen needs to know where their money goes. If they see a lack of quality in education or health despite paying taxes, the culture of compliance will never grow,” he observed.