Dhaka, March 28 -- If revenue collection from personal income tax increases by two percentage points of GDP, it will result in a 0.5 percentage point increase in real GDP, amounting to Tk65,000 crore.

This was said by Ahsan H Mansur , Executive Director of Policy Research Institute (PRI) at a press briefing organised on the occasion of the release of a study report on Domestic Resource Mobilization at the PRI office in Banani of the capitalon Wednesday.

Mansur also said due to the inflationary effects, increases in VAT revenues would have a negative impact on economic growth, as well as household income and consumption.

VAT reform is still required, but tax increases should focus more on personal income taxes after mentioning taxing re...