Tax avoidance, evasion costing govt Tk 55,800-Tk 292,500 crore: CPD

The government is losing as low as Tk 55,800 crore to as high as Tk 292,500 crore of potential revenue due to tax avoidance and evasion, said the Centre for Policy Dialogue (CPD) today.

The amount of tax evasion is estimated to be eight times of social safety net and welfare expenditure, said the independent think-tank at a media briefing on "Tax Transparency in the Corporate Sector: Impact on Public Revenue of the National Budget."

The CPD and the Christian Aid organised the briefing at the former's office in Dhaka.

The amount of tax avoidance is 200 per cent of the public health expenditure of Bangladesh, it added.

This is happening in multiple ways such as showing less income, unethical support from tax practitioners, showing more investment allowances, individuals showing lower income, and high informal transactions or cash-based transactions, said CPD Research Director Khondaker Golam Moazzem while presenting the study on the issue.

"It is important to take measures against different types of tax avoidance and evasions that are currently taking place," he said.

The study said the government could increase tax-to GDP (gross domestic product) ratio to a significant level by taking appropriate measures against tax evasion and tax avoidance.

The CPD suggested Bangladesh work intensively to widen the tax net and bring businesses that are out of the tax net.