Relying solely on taxes won’t solve financing shortages: Finance Adviser

Finance Adviser Dr. Salehuddin Ahmed has stressed that despite financing shortages in the country, relying only on tax revenue is not sustainable. He called for reducing dependence on the banking sector and increasing private sector participation to boost financing.

Speaking at a seminar held at DSC Tower in Dhaka on Monday, Dr. Ahmed pointed out that Bangladesh’s tax-to-GDP ratio stands at 7.25 percent, which is much lower than Brazil’s 26 percent. “Although people pay taxes, they often do not receive adequate services,” he said.

He warned that calls to reduce taxes could make it difficult for the government to meet salary and wage payments in the future.

Bangladesh Bank Governor Ahsan H. Mansur highlighted the country’s weak position in the stock market compared to global standards. He emphasized the need to reduce reliance on banks for investment and encourage activity in the stock market.

Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, urged a shift from a controlling mindset to a development-focused approach. He also noted that the lack of an investment-friendly environment has led to capital outflows from Bangladesh.