State of the Bangladesh Economy in FY2023-24 (First Reading) slide image

State of the Bangladesh Economy in FY2023-24 (First Reading)

Independent Review of RBD Bangladesh's Development Recommendations for the upcoming medium and long term revenue strategy (MLTRS) IMF conditionalities concerning public finance relevant for FY2024 (Continued) Conditionalities NBR staffs Compliance Risk Management Units (CRMUS) in the customs and VAT wings (SB) By December 2023 Comments A CRMU has been staffed by NBR's customs wing, and another is being established in the Audit and Intelligence Directorate of the VAT wing. MoF reports tax expenditures for PIT, CIT and VAT With technical assistance from the IMF, the government will analyse as part of the FY25 budget (SB) By June 2024 NBR adopts a tax compliance improvement plan covering VAT and IT (SB) By June 2024 MoF develops a plan to reduce net NSC issuance to below 1/4 of total net domestic financing by FY26 (SB) By December 2023 existing tax expenditures in CIT, PIT and VAT and publish the analysis as part of the FY2025 budget. It will be utilised to identify measures to rationalise tax expenditures, which will be adopted in the FY2025 and FY2026 budgets. The prevailing data constraint hinders a comprehensive analysis, which might adversely impact the design of the measures. Income tax and VAT wings will work together to develop and gradually implement a comprehensive compliance improvement plan. Net NSC issuance entered the negative terrain in FY23 due to regulatory measures and a cost-of-living squeeze. The government has developed a formal plan regarding how to sustainably keep net NSC issuance below one-fourth of net domestic financing by FY2026. CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading) 15
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