Dhaka, March 15 -- The government has opted for rationalising tax expenditures which will play a useful role in collecting more revenue and ensuring forgone revenue (indirect public expenditure) is made to good use, according to an official document.

According the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division of the Finance Ministry, the collection of sufficient and accurate data would be the next step for which interagency cooperation would be essential.

"To initiate tax expenditure analysis the first step would be to clearly define the benchmark tax rate and base for income tax and VAT," said the paper made available to UNB this week.

It is also necessary to create an exhaustive list of all d...