SM Mohsaninul Anam I I Tax evasion is widespread in Bangladesh due to a combination of mistrust, complexity, and systemic issues. Many Bangladeshis avoid paying taxes because they lack trust in the government, believing their contributions are misused due to corruption and mismanagement. The tax system’s complexity further discourages compliance, especially for individuals and small businesses without professional financial support. Additionally, inadequate taxpayer education means many people are unaware of their obligations and the importance of taxes.
The perception that the tax system is inequitable, disproportionately burdening lower-income groups while the wealthy evade taxes, also fuels non-compliance. Compounding these issues is the insufficient enforcement of tax laws, with limited resources and inefficiencies allowing many cases of evasion to go undetected. The problems are further exacerbated on Tax Day, when the already strained tax collection system faces overwhelming pressure, leading to delays and errors. To tackle these challenges, Bangladesh needs to build trust, simplify the tax system, enhance education, ensure fairness, and strengthen enforcement, fostering a culture of compliance and increasing revenue.
Writer: SM MOHSANINUL ANAM, Department of Accounting & Information Systems,
Bangladesh University of Professionals.
