An Assessment of Non-Tax Revenue Sources in Bangladesh

Abstract

In Bangladesh, the fundamental problem behind arresting the revenue deficit is the rising expenditure unmatched by corresponding means of finance. Of total revenue, the revenue from non-tax sources is nearly one-fifth and its share in GDP has shown a stable trend over the years. This paper mainly focuses on the study of non-tax revenue performance in Bangladesh. The contribution of non-tax revenue, although erratic in terms of growth rate, has shown substantial increase in terms of absolute amount over the period, 1997-98 to 2006-07. Although, various reform initiatives have been taken to improve the tax performance, the initiatives are highly insignificant in case of non-tax revenue. The performance of non-tax revenue can significantly be improved through effective and efficient policy measures, which may help the country to cope with the fiscal imbalance in resource mobilization.