Dhaka, Feb. 4 -- Having worked in the VAT management system for nearly three decades since 1995, I have had the opportunity to observe numerous policy initiatives and administrative reforms. Despite these efforts, Bangladesh continues to have one of the lowest tax-GDP ratios in the world, a reality that clearly fails to justify many of the measures undertaken over the years. The fundamental reason for this outcome is that reforms were not implemented with proper prioritisation. Consequently, VAT has not been collected in line with the true potential of the economy.

To understand why VAT collection remains below the potential, it is necessary to identify the core problem accurately. The most critical weakness in the VAT management system ...