State and Scope of Property Taxation in Bangladesh
Section 1: Introduction - Context
☐ Revenue collection in Bangladesh is largely
dependent on indirect taxes (particularly VAT)
Revenue Composition and Share in Bangladesh (%)
Components
➤ This imposes a burden on marginalised
people through double taxation, deviates Total Revenue (%) (A+B)
from tax justice, and leads to rising income
inequality
A. Tax Revenue as Share
of Total Revenue (%)
(A1+A2)
A1. Indirect Tax as
☐ More that 55% indirect tax revenue comes Share
from domestic sources (e.g., VAT)
☐ Indirect tax revenue obtained from trade
dependent consumption sources will diminish
due to the expected trade loss from LDC
graduation
☐ The share of direct tax is stagnant around 33%
for the last five fiscal years
of Total Tax Revenue
(%)
A2. Direct Tax as Share
of Total Tax Revenue
(%)
FY2018 FY2019 FY2020 FY2021 FY2022
100
100
100
100
100
90.33
89.70
83.48
82.10
89.30
68.37
67.72
64.09
66.02
67.95
31.63
32.29
35.91
33.98
32.05
B. Non-tax Revenue as
Share of Total Revenue
(%)
9.67
10.30
16.52
17.90
10.70
Source: Authors' compilation based on MoF Monthly Reports (2018-2022)
***FY stands for Fiscal Year which starts on July 1 of current year and
ends on June 30 of the following year in Bangladesh
☐ With the transition, income level and wealth accumulation will increase and so property tax has to be th
potential source of revenue
State and Scope of Property Taxation in Bangladesh
7View entire presentation