Though the ratio of the total revenue collection to the Gross Domestic Product (GDP) is the lowest in Bangladesh among South Asian countries, there were no significant progress over enhancing the ratio in the last 10 years, according to information placed before a JS body meeting.
The Parliamentary Standing Committee on Finance Ministry held a meeting at the Jatiya Sangsad Bhaban on Wednesday with its Chairman Dr Muhammad Abdur Razzaque in the chair, said a Parliament Secretariat handout on Wednesday.
The meeting was told that the country’s total revenue collection was 10.3 percent of the GDP in the last 10 years, while it is 19.7 percent in India and 19.6 percent even in Nepal. The average revenue collection is 35.8 percent of the GDP in the developed economies.
Mentioning that there is no alternative to enhancing the revenue collection for expediting the country’s development, the parliamentary watchdog suggested that the government expand the nets of VAT and tax undertaking pilot projects gathering experiences from other countries, if necessary.
The committee was also informed that there is no liquidity crisis in the country’s banking sector now. The liquidity crisis which was created in the past due to wrong management of some banks has already been resolved.
Committee members Mustafizur Rahaman Chowdhury, Md Abdul Wadud, Farhad Hossain and Md Sawkat Chowdhure attended the meeting.
The Bangladesh Bank Governor and Senior Secretary of the Financial Institutions Division were also present at the meeting.