Tax Amnesty Offered as Bangladesh Sees Difficult Year Ahead

Bangladesh will spare citizens prosecution if they pay tax on until-now undisclosed income, as the government tries to boost revenue and stimulate the economy without risking a blowout deficit.

Citizens can bring back funds from abroad by paying a 7% tax, without any regulatory interference, according to budget documents published Thursday. The fiscal deficit is forecast to be 5.5% in the year starting July 1 from a revised 5.1% the previous period, while borrowing from banks is estimated to rise to a record as imports get costlier.

“We might have to face tough challenges in the coming fiscal year,” according ...