MCCI president calls for fiscal modernisation to raise tax-GDP ratio

Bangladesh must urgently modernise its fiscal infrastructure to address its critically low tax-to-GDP ratio, Kamran T. Rahman, President of the Metropolitan Chamber of Commerce and Industry (MCCI), said today.

He made the remarks while speaking as a panellist at the ongoing ICAB-FE pre-budget roundtable at CA Bhaban in the capital’s Karwan Bazar area.

Mr Rahman said digital accounting is a vital step toward ensuring financial transparency, reducing tax evasion and improving trust between businesses and revenue authorities.

He said Bangladesh still faces a wide gap between registered taxpayers and actual tax contributors, which limits the government’s ability to raise revenue in a fair and sustainable way.

To address the problem, he suggested stronger integration of national databases, including linking National Identity Card information with business registrations and tax records.

Mr Rahman also stressed the need to bring the informal economy into the formal system through simpler filing procedures and lower, symbolic tax rates that encourage voluntary participation.

He said reducing physical interaction between taxpayers and tax officials would help improve transparency, reduce harassment and build confidence in the tax system.

The MCCI president also called for developing a more cashless business ecosystem, saying it would support better documentation, stronger compliance and long-term economic stability.

The pre-budget roundtable has been jointly organised by The Financial Express and the Institute of Chartered Accountants of Bangladesh.