In recent years, Bangladesh’s tax-to-Gross Domestic Product (GDP) ratio has declined to approximately 7.3 per cent, the lowest level not only in South Asia but also across Asia. This trend is indicative of growing fiscal indiscipline and has gained renewed urgency following the transition of power to a newly elected government led by the Bangladesh Nationalist Party (BNP). The incoming administration has articulated ambitious fiscal targets, pledging to elevate the tax-to-GDP ratio from its current level to 10 per cent in the medium term and to 15 per cent by 2035.
Authors: Khondaker Golam Moazzem, Tamim Ahmed, Maleehah Sabah Ali, Sami Mohammad, Mohammad Iftekharul Islam
Publication period: March 2026
