Anyone who is informed about Bangladesh's development, budget, or public financing, or has followed discussions or news about Bangladesh in meetings of the World Bank or especially the IMF in April, knows the country's extremely weak revenue situation or the poor tax-to-GDP ratio. Due to the disappointing revenue collection situation, our development financing is becoming quite risky. There is a perception among many that our revenue-collecting agencies, under pressure from the government or due to this risk, are treading or might tread the wrong path.

The stagnation in investment in our economy over an extended period can no longer be denied. High inflation, increased business costs due to interest rate hikes, and foreign currency liquidity crises—these have collectively made the business environment challenging. In the midst of this, the inconsistency in tax policy has aggravated the situation further, akin to ''adding fuel to the fire.'' Even though the corporate tax rate has been gradually reduced to 27.50 per cent, the total tax burden still exceeds 40 per cent, which is neither investment-friendly nor encouraging.

If the government pursues the path of increasing turnover or transaction taxes, it would equate to aggravating the situation further. Business people fear that this would strain capital, reduce profits, and decrease new investments. In many sectors, including the SME sector engaged in product distribution, achieving a 1 per cent net profit amidst high business expenses or intense competition is nearly impossible. Ignoring this fundamental economic reality, any effort to increase revenue could ultimately backfire.