Martin Raiser, vice president of the World Bank for South Asia, yesterday stressed the need to separate tax policy from the National Board of Revenue (NBR) in order to improve Bangladesh's tax-to-GDP ratio.

"We have discussed this issue, and the finance adviser has informed me that a cabinet decision has already been made," Raiser said while talking with reporters after a meeting with Finance Adviser Salehuddin Ahmed in Dhaka.

"Now, the question is how the government will implement it," he added.

Raiser emphasised the importance of swift action and said he expects to see progress within the next few weeks or months after completing required procedures.

"Any new tax benefits or measures must be approved and included in the budget through legislation, and that's what we discussed," he said.

He raised the issue at a time when the government's advisory committee for NBR reforms made the same suggestion. Earlier, the International Monetary Fund also stressed the issue.

Additionally, they discussed reforms aimed at improving governance and transparency, procurement laws, access to information, and independence of the Bangladesh Bureau of Statistics, according to Raiser.

Regarding the recent macroeconomic challenges, he said, "Obviously, there are a number of challenges, but Bangladesh remains a country with great potential, and we're here to help realise that."

During the briefing, Finance Adviser Salehuddin Ahmed said the current balance of payments situation is quite stable.

"We are not desperate for foreign loans or willing to negotiate under complex conditions," he added.

Raiser yesterday arrived in Dhaka for a four-day visit, which the global financial institution stated was aimed at reinforcing its longstanding partnership with Bangladesh.