Revenue Mobilisation and Economic Growth
Bangladesh Economic Update
November 2013

Bangladesh Economic Update
Volume 4, No. 11, November 2013

Acknowledgement
Bangladesh Economic Update is a monthly publication of the Economic Policy Unit of Unnayan
Onneshan, a multidisciplinary research organisation based in Dhaka, Bangladesh. A team works under the guidance of Rashed Al Mahmud Titumir, comprising Shahida Pervin and Abid Feroz
Khan.

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Bangladesh Economic Update, November 2013

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1.INTRODUCTION

This issue of Bangladesh
Economic Update probes into the tax system of
Bangladesh in the backdrop of falling investment, missing revenue target and growing pressure on revenue. This issue of Bangladesh Economic Update probes into the tax system of Bangladesh in the backdrop of falling investment, missing revenue target and growing pressure on revenue.
Bangladesh has comparatively lower tax to GDP ratio, even compared to most of its South Asian counterparts. For example, tax to GDP ratio in Bangladesh was 6.74 percentage points lower than India in FY 2012-13. The gap between the total expenditure and total revenue is increasing over the years. If the same trend continues, it can be anticipated that the gap may become further wider to Tk. 558.5 billion in FY 2013-14 from the targeted Tk. 550.32 billion. The budget deficits