Dhaka, Feb. 20 -- Bangladesh should phase out the source tax on exports at the earliest opportunity, as it undermines competitiveness and distorts trade, according to a national taskforce on revenue reform.

The panel argues that taxing manufacturing exports contradicts fundamental tax principles and weakens the country's export-led growth strategy.

In its report submitted to the interim government last month, the taskforce stated unequivocally: "Taxing manufacturing exports is a bad idea."

Instead, it recommended collecting revenue from export-oriented industries through corporate and personal income taxes in line with established taxation norms.

The taskforce, formed by the interim administration, observed that export taxes are disto...