State Minister for Planning Md Zonayed Abdur Rahim Saki on Sunday acknowledged public concerns over bringing grocery shops and kitchen markets under the tax net, saying the government must ensure people are not unduly burdened while expanding the country's tax base.
"We must undoubtedly express concern over this issue. People have to be given relief," he said while participating in the general discussion on the proposed national budget for the 2026-27 fiscal year in Parliament.
Saki said the government has expanded the tax net on a rational basis, and taxes will initially be imposed at a flat rate according to taxpayers' financial capacity, as per a UNB agency report.
He also announced that revenue policy formulation and revenue collection will be separated as part of a broader tax reform agenda. An independent policy-making body comprising experts from outside the bureaucracy will be established to formulate revenue policies, he said.
Expressing optimism about achieving the revenue target for the next fiscal year, the state minister said stricter measures against tax evasion, alongside automation and tax reforms, will help the government meet its collection goal.
Defending the proposed budget, he said, though concerns have been raised over its financing, the government's reform initiatives will strengthen revenue mobilisation.
Saki noted that several lawmakers questioned both the size of the proposed budget and its financing sources.
"The size of Bangladesh's budget is around 13 per cent of GDP, whereas in neighbouring and many other countries it is generally between 30 and 33 per cent of GDP," he said. "Considering our population and the level we aspire to reach as a nation, this is actually a small budget," he added.
The state minister said the government inherited a "destroyed and fragile economy" and prepared the budget in line with the country's current economic capacity while pursuing reconstruction and long-term prosperity.
He described the proposed budget as "not contractionary but expansionary in line with reality", saying it strikes a balance between development priorities and prevailing economic conditions.
Responding to concerns over financing, the state minister acknowledged doubts about achieving the National Board of Revenue's (NBR) ambitious revenue target of Tk 6.95 trillion, given its past performance.
However, he claimed that revenue collection increased significantly over the past four months compared to the corresponding period of the previous fiscal year due to a series of government initiatives.
Saki said the government failed to collect adequate revenue because of tax evasion, tax fraud and excessive tax exemptions.
To address these challenges, he said, the government is rapidly implementing automation across the tax administration. As part of the initiative, automation programmes were launched on Sunday at the NBR and five other institutions, he added.
