More than two thirds of the Bangladeshi population do not pay tax despite earning a taxable income, according to a recent study.
The Centre for Policy Dialogue (CPD) carried out a survey earlier this year among 1,200 people who had a taxable income. It found that only 32% had paid their taxes the previous year.
But Towfiqul Islam Khan, the independent think-tank's senior research fellow, told the The Daily Star: “This does not mean that those who have paid tax have not evaded tax.”
Indeed, nearly half of respondents found the tax system overly complex. As a result, Kahn called for the introduction of incentives to encourage lower income households to become taxpayers.
Around 85% of those questioned also believed that more and better quality public services would induce people to pay their way. But three quarters felt the tax system inherently favoured the elite, while 65% indicated that corruption was prevalent.
The tax-to-GDP ratio in Bangladesh amounted to 9% in fiscal 2016-17, far below the 15% average for other developing countries, Kahn said.
Meanwhile, workers in Bangladesh's apparel industry are paid the lowest wages in the world, even after the latest salary hike planned for next month.
According to the Japan External Trade Organization, an entry-level operator in the sector will earn an average of Tk8,000 (US$95) from December, up from Tk5,300 (US$68) now. But the new minimum wage is still the lowest in the world, the Dhaka Tribune reported. Average monthly pay is just US$101, compared with US$135 for Myanmar, US$170 for Cambodia, US$234 for Vietnam and US$518 for China.
As a result, workers’ leaders are demanding that the minimum wage meet workers’ basic needs. The comparison of absolute wages across countries can be misleading as living expenses vary widely, they say.
Sirajul Islam Rony, president of the Bangladesh National Garment Workers Employees League, told the Dhaka Tribune: “As a trade union leader, I think the minimum wage should be an amount that can meet basic needs of workers and their children’s education costs.”
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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More than two thirds of the Bangladeshi population do not pay tax despite earning a taxable income, according to a recent study.
The Centre for Policy Dialogue (CPD) carried out a survey earlier this year among 1,200 people who had a taxable income. It found that only 32% had paid their taxes the previous year.
But Towfiqul Islam Khan, the independent think-tank's senior research fellow, told the The Daily Star: “This does not mean that those who have paid tax have not evaded tax.”
Indeed, nearly half of respondents found the tax system overly complex. As a result, Kahn called for the introduction of incentives to encourage lower income households to become taxpayers.
Around 85% of those questioned also believed that more and better quality public services would induce people to pay their way. But three quarters felt the tax system inherently favoured the elite, while 65% indicated that corruption was prevalent.
The tax-to-GDP ratio in Bangladesh amounted to 9% in fiscal 2016-17, far below the 15% average for other developing countries, Kahn said.
Meanwhile, workers in Bangladesh's apparel industry are paid the lowest wages in the world, even after the latest salary hike planned for next month.
According to the Japan External Trade Organization, an entry-level operator in the sector will earn an average of Tk8,000 (US$95) from December, up from Tk5,300 (US$68) now. But the new minimum wage is still the lowest in the world, the Dhaka Tribune reported. Average monthly pay is just US$101, compared with US$135 for Myanmar, US$170 for Cambodia, US$234 for Vietnam and US$518 for China.
As a result, workers’ leaders are demanding that the minimum wage meet workers’ basic needs. The comparison of absolute wages across countries can be misleading as living expenses vary widely, they say.
Sirajul Islam Rony, president of the Bangladesh National Garment Workers Employees League, told the Dhaka Tribune: “As a trade union leader, I think the minimum wage should be an amount that can meet basic needs of workers and their children’s education costs.”
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Bangladeshi garment workers protest over minimum wage rise levels
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