Dhaka, Dec. 31 -- Bangladesh's tax-to-GDP ratio has stayed low for years, which limits the country's ability to invest in roads, healthcare, schools, and other public services. While most discussions focus on big corporations and wealthy individuals, the majority of tax avoiders are actually small shop owners and micro-entrepreneurs, like the grocer in the alley, the clothing trader in a bazaar, or the electronics stall in a district town. These people are not hiding wealth offshore or taking advantage of loopholes. They are ordinary citizens trying to work within a system that does not suit their needs.

For many of these traders, the problem with filing income tax is not that they are unwilling, but that they lack the ability. The forms...