National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Sunday announced that tax officials will be given specific targets to increase tax collection from individuals and entities that evade taxes, fail to file returns, or claim exemptions improperly.
“Eligible non-taxpayers will be brought under surveillance,” he said while addressing a seminar titled ‘Fiscal Issues for National Budget 2025-26 to Foster Economic and Business Growth’ as the chief guest at a hotel in the capital.
Khan pointed out that the amount of tax revenue lost through exemptions is nearly equivalent to what is collected annually. “From the very beginning, a large volume of exemptions has been granted, but given the government’s growing internal and external debt burden, this is no longer sustainable,” he said.
The NBR chief announced that commissionerates will receive instructions and tax collection targets for both the current and next fiscal years. “This will help measure how much revenue is being collected from non-filers and those who benefit from exemptions.”
According to Khan, about 92% of NBR’s revenue is generated automatically—mostly through Tax Deducted at Source (TDS)—while tax officials directly collect just 8%. “This new system will allow us to gauge the efficiency of our tax officials,” he added.
The NBR chief also revealed that under the upcoming tax exemption policy, the authority to grant exemptions will rest with Parliament, ensuring greater transparency and accountability.
On business facilitation, he said the next budget would include measures to simplify procedures related to income tax, customs, and VAT.
“We’re prioritising the reduction of compliance costs without compromising revenue,” he emphasised, noting that these simplifications will be reflected in the new Finance Ordinance for FY26.
The Institute of Chartered Accountants of Bangladesh (ICAB), the Foreign Investors’ Chamber of Commerce & Industry (FICCI) and the Japan-Bangladesh Chamber of Commerce & Industry (JBCCI) jointly organised the seminar.
ICAB council member and former President Mohammed Humayun Kabir chaired the session, which featured keynote presentations from Dr M Masrur Reaz, Chairman of Policy Exchange Bangladesh and Snehasish Barua, Partner at Snehasish Mahmud & Co., Chartered Accountants.
A panel discussion followed, with insights from industry leaders including Mohammad Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh; Manabu Sugawara, Country Head of Marubeni Corporation; Yuji Ando, Joint Secretary General of JBCCI; Dr. Abdul Mannan Shikder, former NBR Member; and Md. Afzal Hossain, former Government Secretary.
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Khan said the government will rationalise the tax structure, although it may not fully meet the expectations of the business community. “However, this reflects our responsiveness to your concerns.”
He noted that most stakeholders in pre-budget discussions had called for a reduction in tax rates—demands he described as reasonable, yet difficult to accommodate given the need to balance revenue growth with trade facilitation.
Even though Bangladesh having one of the lowest nominal corporate tax rates in the region at 22.5%, the actual tax burden remains high due to arbitrary assessments.
To address this, the NBR plans to implement monitoring tools to evaluate assessment quality and reward tax officials for adherence to rules.
The NBR has also begun issuing notices to non-filers, with each tax office being assigned recovery targets. A long-term tax policy framework is also under consideration to minimize abrupt changes in policy.
As part of its digital initiatives, the NBR has launched a new online export-import tax portal.
Besides, manual audit selection has been paused, and the board will begin conducting random electronic audits on 0.5% of returns—a figure expected to grow as digital systems evolve.
ICAB President Maria Howlader called for predictable tax policies, structural reforms, and accelerated digitalization to create a more business-friendly environment.
She stressed the importance of coordinating fiscal and monetary policy to address persistent inflation, which currently hovers between 9% and 10%.
“Unchecked fiscal deficits and excessive borrowing can worsen inflationary pressures and threaten overall economic stability,” she warned, urging policymakers to emphasise trade facilitation, automation, and institutional coordination.
FICCI President Zaved Akhtar underscored the need for an integrated tax system, separating policy formulation from revenue administration to promote fairness and predictability.
He advocated for a unified VAT rate, proper raw material classification, and gradual removal of non-tariff barriers to enhance competitiveness ahead of Bangladesh’s LDC graduation.
JBCCI President Tareq Rafi Bhuiyan welcomed the upcoming budget’s focus on improving the ease of doing business, citing its potential to attract investment and strengthen Bangladesh-Japan economic ties.
Dr M Masrur Reaz noted the economic challenges facing Bangladesh, including near double-digit inflation and a six-year low in foreign direct investment. He called for bold fiscal and monetary action to navigate these uncertainties.
Echoing these concerns, Snehasish Barua emphasized the need for strong fiscal policies in the upcoming budget.
The seminar was attended by key stakeholders like ICAB CEO Shubhashish Bose, FICCI Board members, FICCI Executive Director TIM Nurul Kabir, JBCCI Executive Director Tahera Ahsan, and representatives from various embassies, FICCI and JBCCI member companies and other organisations.