Nearly half of the firms alleged that they were asked for bribes by officials while seeking tax-related services, according to a survey by the Centre for Policy Dialogue (CPD).

The think-tank said it surveyed more than 100 companies, including 103 publicly listed firms at the stock exchanges, based in Dhaka and Chattogram, and 45 percent stated that they were asked for a bribe by tax officials in the fiscal year (FY) 2022-23.

It indicates a lack of transparency and corruption within the tax administration, said Tamim Ahmed, senior research associate at the CPD, while presenting the study at the CPD office in Dhaka today.

In addition, 40 percent of the surveyed companies reported facing problems while adjusting their tax refunds.

The study said 82 percent of the firms that took part in the survey believed the current tax rates imposed on them were unfair, identifying this as one of their major challenges.

Also, a lack of accountability among tax officials, widespread corruption, and the absence of a fully digital tax submission system were flagged as other key concerns. For example, 79 percent of the surveyed firms said there was a lack of accountability among tax officials.

And 72 percent blamed widespread corruption in the tax administration, according to the CPD survey.

In addition, 65 percent of the businesses reported persistent disputes with tax officials over the calculation of their payable tax amounts.

Such practices create an intangible burden that often outweighs the tax itself, making the overall tax environment unfair, said Ahmed, citing businesses.

He added that there is also a prevailing sense of distrust among the surveyed businesses regarding whether the taxes they pay will be utilised in ways that benefit them.