Investor Presentaiton
Independent Review of
RBD
Bangladesh's Development
High Incidence of Tax on Some
Imported Essential Food Items
CPD's analysis shows that at least 29 imported essential food
items currently face a high incidence of tax
High inflation has revealed the inherent weakness in the government's
domestic resource mobilisation approach which is largely dependent
on revenue collection from indirect taxes
➤ The government has recently been obliged to withdraw VAT on soyabean
oil in a bid to prevent the price of soyabean oil from increasing further
➤ It is likely that if inflation continues at the present rate, the government
may be compelled to withdraw other indirect taxes on essential items as
well
Thus, fiscal policy which is highly dependent on indirect taxes
propagates economic inequality in society and forces the government
to trade-off revenue generation in the face of high inflation
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
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