Corporate Income Tax Reform for Graduating Bangladesh: The Justice Perspective

Khondaker Golam Moazzem, Tamim Ahmed and Mohammad Iftekharul Islam

No 86, CPD Report from Centre for Policy Dialogue (CPD)

Abstract: As Bangladesh prepares to graduate from LDC status in November 2026, it confronts a stark fiscal reality: dwindling concessional aid and one of the world’s lowest tax-to-GDP ratios. This study investigates whether corporate income tax can become a cornerstone of domestic resource mobilisation and tax justice in the post-graduation era. Drawing on a survey of 123 firms, key informant interviews, and financial data from 103 listed companies, the research uncovers deep-rooted vulnerabilities, including runaway tax exemptions, pervasive informality, and flawed tax design, that currently undermine both revenue generation and fairness. The findings offer critical insights for policymakers seeking to build a more resilient and equitable fiscal system beyond 2026.

Keywords: Corporate Tax; Tax Reform; Tax Justice; LDC Graduation; Resource Mobilisation; Tax Exemptions; Fiscal Policy; Tax Revenue; Corporate Taxation; Bangladesh Economy (search for similar items in EconPapers)
Pages: 60 pages
Date: 2025-10
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https://cpd.org.bd/resources/2026/05/Corporate-Inc ... ating-Bangladesh.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:pdb:report:86

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