Tax evasions surged past Tk2.26 lakh crore in 2023: CPD

The state lost nearly Tk226,236 crore due to tax evasions in 2023, with corporate evasions accounting for nearly half the losses, the Centre for Policy Dialogue said at a press briefing in the capital on Monday.

The evasions started rising exponentially in 2011, the second year of Awami League’s 15-year authoritarian rule. Evasions reached an estimated Tk96,503 crore in 2012, and hit Tk133,673 crore three years later, CPD said in a report.

The global trend in corporate income tax (CIT) has declined in recent years, dropping from 27.5 percent in 2006 to about 23.6 percent in 2016.

Many developing countries maintain standard CIT rates of 25%, 30%, or higher; for instance, China has a CIT rate of 25 percent, Malaysia 24 percent, Indonesia 22 percent, Pakistan 29 percent and Myanmar 22 percent.

Some developing countries offer significantly lower CIT rates, such as Oman and Uzbekistan at 15 percent, and Paraguay and Kyrgyzstan at 10 percent.

Tax Structure of Developing Countries and LDCs Country Group CIT Rate Global Trend (2006-2016) 27.5% (2006) to 23.6% (2016) Developing Countries 22%-29% Least Developed Countries (LDCs) 10%-35% Graduated LDCs 21%-35%.