DHAKA, April 28, 2026 (BSS) - The Policy Research Institute (PRI) has underscored the need for Bangladesh to reduce its heavy reliance on trade taxes in order to enhance economic competitiveness and support export diversification.

Md Ahad Al Azad Munem, a research associate at PRI, made the remarks while presenting the institute's recommendations for the FY2026-27 national budget at a pre-budget meeting at the National Board of Revenue (NBR) in the city.

According to PRI, nearly 28 percent of Bangladesh's total revenue is currently generated from trade taxes, a figure significantly higher than the 5 to 15 percent typically observed in comparable economies.

The institute noted that such overdependence distorts the overall tax structure and undermines long-term economic efficiency.

To address the issue, PRI proposed a gradual reduction in reliance on trade taxes to 7.5 percent by 2035.

It suggested that the revenue burden be shifted toward more sustainable domestic sources, particularly value-added tax (VAT) and income tax.

The institute emphasized that this transition is crucial for building a modern, transparent, and growth-oriented tax system capable of supporting Bangladesh's evolving economic aspirations.