Published: 12:02 AM, 14 October 2026
Revenue Collection Will Hit Hurdles If Poverty Cannot Be Eradicated
Revenue collection is one of the major sources of government income. It plays a vital role in financing public services, developing infrastructure, improving education and healthcare, and ensuring economic stability. However, revenue collection will face serious challenges if poverty cannot be eradicated. A large number of poor people and widespread economic inequality can weaken the tax base and prevent the government from achieving its revenue targets.
Poverty and revenue collection are closely connected. People living below the poverty line often struggle to meet their basic needs, including food, clothing, shelter, education and medical treatment. They have little or no savings and limited purchasing power. As a result, their ability to pay taxes, directly or indirectly, remains low. When a significant portion of the population is poor, the government finds it difficult to expand its revenue sources.
In Bangladesh, poverty reduction remains an important national priority. Although the country has made progress in economic development, many people still face financial hardship, unemployment, rising living costs and limited access to quality education and healthcare. These problems affect productivity, reduce household income and restrict economic activities. Consequently, the government may struggle to collect sufficient revenue to meet its growing expenditure.
Another major challenge is the large informal economy. Many low-income workers and small businesses operate outside the formal tax system. Their earnings are often irregular, and proper financial records may not be maintained. At the same time, tax evasion, corruption and weaknesses in tax administration can reduce government revenue. Therefore, poverty is not the only obstacle; poor governance and an inefficient tax system also contribute to the problem.
Experts believe that sustainable revenue growth requires inclusive economic development. The government should create employment opportunities, encourage entrepreneurship, improve vocational training and ensure quality education for all. Special attention should be given to rural development, small industries, agriculture and women's economic participation. When people earn more and enjoy greater financial security, their purchasing power increases, businesses expand and the tax base becomes wider.
Moreover, the government must simplify tax procedures, improve transparency, prevent tax evasion and ensure that everyone pays a fair share according to their ability. A progressive tax system can help protect low-income groups while generating more revenue from those with greater financial capacity.
