DHAKA, April 4, 2024 (BSS) - Private think-tank Centre for Policy Dialogue (CPD) today laid emphasis on pursuing 'zero-tolerance' against the tax dodgers.

The think-tank urged the authorities concerned to give topmost priority to enhancing Domestic Resource Mobilization (DRM) through taxation, particularly by raising direct taxes, reviewing tax expenditures and incentives, closing loopholes and broadening tax net.

CPD made the suggestions at a dialogue titled "Bangladesh's External Borrowings and Debt Servicing Scenario: Are There Reasons to be Concerned?"

The CPD, in partnership with the Asia Foundation, organised the event at the Lakeshore Hotel in the city.

Dr Mashiur Rahman, economic adviser to the Prime Minister, attended the event as the chief guest while Dr Salehuddin Ahmed, former governor, Bangladesh Bank and Kamran T Rahman, president, Metropolitan Chamber of Commerce and Industry (MCCI), attended as distinguished panelists.

Dr Debapriya Bhattacharya, distinguished fellow, CPD and former ambassador and permanent representative of Bangladesh to the WTO and UN Offices in Geneva, attended as special commentator.

Kazi Faisal Bin Seraj, country representative, The Asia Foundation - Bangladesh delivered the introductory remarks while Dr Fahmida Khatun, executive director, CPD, chaired the session.

Professor Mustafizur Rahman, distinguished fellow, CPD, delivered the keynote presentation.

In his speech, Dr Mashiur Rahman said export diversification and improvement of export capacity is very important. 

"As per the national perspective, it is very important to improve our capacity for export and improve our capacity for production," he added.
 
He said there is enormous scope of productivity improvement. "Investment in modernisation, improvement in machinery is also important for productivity improvement," he added. 

In the presentation, Mustafizur Rahman laid emphasis on strengthening good governance in implementation of the Public Infrastructure Projects (PIPs).

He said Bangladesh's debt and repayment obligations are escalating, forcing the government to continually resort to borrowing to repay loans.
 
"We are indeed borrowing to repay a large part of our public and publicly guaranteed debt obligations," he said.

"Therefore, there is no alternative but to rapidly increase domestic resource mobilization," he added. 

He, however, warned against complacency, emphasising that "the capacity for repayment is of critical importance."