Experts said that at least 20 lakh new taxpayers must be brought under the tax net every year to improve the tax-GDP ratio.
They were speaking at a discussion titled 鈥楳onthly Macroeconomic Insights鈥�, organized by the Policy Research Institute of Bangladesh, in partnership with the Department of Foreign Affairs and Trade of the Australian Government on Tuesday in the capital.
At the event, Mohammed Farashuddin, chairperson of the Board of Trustees at East West University and former governor of Bangladesh Bank, said that the reform in tax sector is imminent.
If 20 lakh new taxpayers could be brought under the tax net every year, the burden would not fall disproportionately on those who are already paying, he added.
He also urged the government to take stronger action against money launderers.
He also stressed the importance of employment generation, underscoring the need to support small entrepreneurs through skills training and access to low-interest loans.
Khurshid Alam, executive director of the PRI, said that the current situation shows that growth is being held back by constraints on capital machinery imports and other essential inputs.
This reflected a broader dilemma: the choice between pursuing stability or unsustainable growth.
鈥楾he real question is whether we should aim for sustainable growth, supported by a stable system and sound macroeconomic conditions. Achieving this, however, will inevitably require deeper and more comprehensive reforms in the future,鈥� he added.
Ashikur Rahman, principal economist of the PRI, presented the keynote, saying that the economic stabilization that has been painstakingly achieved through contractionary fiscal and monetary policies, and through difficult measures to restore governance in the banking sector, can only yield long-term dividends if Bangladesh invests in the capacity and autonomy of its economic institutions, most importantly Bangladesh Bank.
鈥楾he deliberate erosion of Bangladesh Bank鈥檚 independence and technical capacity has enabled the rise of economic oligarchs who have operated with impunity, extracting rents in a manner reminiscent of the East India Company,鈥� he added.
Their unchecked financial irregularities pushed the banking system to the brink of collapse, undermining public trust and weakening the economy鈥檚 foundations, he added.
鈥楾o prevent any repeat of this near meltdown, the Interim Government must commit to granting complete independence to Bangladesh Bank and adopt a governance model comparable to the Bank of England or the Federal Reserve in the United States,鈥� he added.
Kamran T. Rahman, president of the Metropolitan Chamber of Commerce and Industry said that expanding employment and investing in skills development are critical to harnessing our demographic dividend.
Clinton Pobke, deputy head of mission, Australian High Commission in Bangladesh, said that new governance reforms鈥攃overing banking, taxation, and judicial independence鈥攃ould deliver long-term dividends if sustained, but their future depends on the next government鈥檚 choices.
Academicians and business leaders also spoke at the event.
The session underscored the importance of evidence-based policy dialogue and close collaboration between policymakers, private sector stakeholders, and development partners in navigating Bangladesh鈥檚 economic transition.
