As Bangladesh prepares to graduate from LDC status in November 2026, it confronts a stark fiscal reality: dwindling concessional aid and one of the world’s lowest tax-to-GDP ratios. This study investigates whether corporate income tax can become a cornerstone of domestic resource mobilisation and tax justice in the post-graduation era. Drawing on a survey of 123 firms, key informant interviews, and financial data from 103 listed companies, the research uncovers deep-rooted vulnerabilities, including runaway tax exemptions, pervasive informality, and flawed tax design, that currently undermine both revenue generation and fairness. The findings offer critical insights for policymakers seeking to build a more resilient and equitable fiscal system beyond 2026.
Authors: Tamim Ahmed, Khondaker Golam Moazzem and Mohammad Iftekharul Islam
Publication Period: October 2025
