Bangladesh lost estimated Tk 2.26t to tax evasion in 2023: CPD

Bangladesh lost an estimated Tk 2.26 trillion in tax revenue in 2023 due to evasion and avoidance, driven by the lack of a fully digitalised tax system.

This finding was revealed in a study report of the think tank the Centre for Policy Dialogue (CPD) unveiled on Monday, reports UNB.

On the occasion, the research organisation a briefing on corporate income tax reform for graduating Bangladesh at the CPD office in Dhanmondi, Dhaka.

The CPD study estimated that around 50 per cent has been lost to corporate tax evasion. The estimated corporate tax evasion in 2023 would be roughly Tk 1.131 trillion.

The global trend in corporate income tax (CIT) has declined in recent years, dropping from 27.5 per cent in 2006 to about 23.6 per cent in 2016.

Many developing countries maintain standard CIT rates of 25%, 30%, or higher; for instance, China has a CIT rate of 25 per cent, Malaysia 24 per cent, Indonesia 22 per cent, Pakistan 29 per cent and Myanmar 22 per cent.

Some developing countries offer significantly lower CIT rates, such as Oman and Uzbekistan at 15 per cent, and Paraguay and Kyrgyzstan at 10 per cent.

Tax Structure of Developing Countries and LDCs Country Group CIT Rate Global Trend (2006-2016) 27.5% (2006) to 23.6% (2016) Developing Countries 22%-29% Least Developed Countries (LDCs) 10%-35% Graduated LDCs 21%-35%.