Bangladesh, May 19 -- Bangladesh's overdependence on indirect taxation could pose serious economic challenges and restrict long-term development, Policy Exchange Bangladesh Chairman M Masrur Reaz has warned.

Speaking at a roundtable titled "Overdependence on Indirect Taxes: Multifaceted Impacts on the Economy", organised by Voice for Reform at BDBL Bhaban in Karwan Bazar on Monday, Reaz described the country's tax system as regressive and ineffective in reducing poverty.

"Our tax structure relies heavily on value-added tax (VAT) and customs duties.

Under such a framework, achieving inclusive growth and prosperity will be difficult," he said, highlighting that a significant portion of government revenue comes from VAT and import-relate...