NBR
Two more NBR officials demoted after disciplinary proceedings
The government has demoted two National Board of Revenue (NBR) officials by two pay grades each after disciplinary proceedings found them guilty of misconduct in separate incidents linked to protests and defiance of official orders.
According to separate gazette notifications, Additional Tax Commissioner Chand Sultana Chowdhurani and Joint Tax Commissioner Masuma Khatun were punished under the Government Servants (Discipline and Appeal) Rules, 2018.
Their suspension orders have also been withdrawn, with the penalties taking immediate effect.
Read More: NBR extends income tax return deadline to January 31
Chand Sultana Chowdhurani (Employee ID: 200366), who was serving as Additional Tax Commissioner (current charge) and Officer on Special Duty at the NBR, was accused of instigating officials to abandon official duties and assemble at the Revenue Building following the promulgation of the Revenue Policy and Revenue Management Ordinance, 2025.
The allegations stem from WhatsApp messages she posted on June 26, 2025, calling on NBR officials to “come down” and enquiring which tax commissioners were heading towards the NBR in solidarity with a reform platform.
Authorities said her actions disrupted revenue collection activities and constituted a clear violation of the Government Servants Conduct Rules, 1979.
After departmental proceedings, including a personal hearing and a formal investigation, the charges of misconduct were proven beyond doubt.
Read More: NBR enables election aspirants to file online tax returns
As punishment, her basic pay has been reduced by two grades — from Tk 58,560 to Tk 53,610 — while her temporary suspension has been revoked.
In a separate case, Masuma Khatun (Employee ID: 200297), Joint Tax Commissioner and Officer on Special Duty at the NBR, was found guilty of publicly tearing up a transfer order in front of electronic and print media on June 24, 2025, at the entrance of the Revenue Building.
The authorities stated that her actions amounted to insubordination, defiance of a lawful government order and conduct unbecoming of a public servant, in violation of existing conduct and discipline rules.
Following an investigation and personal hearing, the allegations of misconduct were also proven against her. Consequently, her basic pay has been reduced by two grades — from Tk 69,850 to Tk 63,960 — and her suspension order has been withdrawn.
Both penalties have been imposed as minor punishments under Rule 4(2)(gh) of the Government Servants (Discipline and Appeal) Rules, 2018 and are effective immediately.
3 days ago
NBR official penalised for violating rules of conduct
The National Board of Revenue (NBR) has imposed a penalty of demotion by two pay grades on Additional Tax Commissioner Sehela Siddika for misconduct, following the conclusion of a departmental inquiry, while simultaneously withdrawing her temporary suspension.
According to the order, Siddika was found guilty of violating the Government Servants (Conduct) Rules, 1979 and the Government Servants (Discipline and Appeal) Rules, 2018, after she allegedly organised and encouraged a work-stoppage programme through messages circulated on WhatsApp in May 2025.
While serving, the order said, with the Income Tax Intelligence and Investigation Unit in Dhaka, Siddika allegedly posted messages on May 21, 2025, calling on field-level income tax, customs and VAT officials in Dhaka to gather at the NBR headquarters and remain there from morning to evening the following day.
Read More: NBR extends income tax return deadline again
She also urged officials outside Dhaka to observe a similar sit-in at their respective offices.
Later messages clarified that the programme would run from 9:00am to 5:00pm, with import, export and international passenger services exempted.
The authorities held that these actions compelled on-duty officials to abandon their official responsibilities, thereby disrupting national revenue collection activities.
The conduct was deemed a clear violation of Rule 30A of the Government Servants (Conduct) Rules, 1979, and constituted misconduct under Rule 32 of the same rules.
Read More: A turbulent 18 months at NBR, as various reform initiatives rolled out
A departmental case was initiated under Rule 3(b) of the Government Servants (Discipline and Appeal) Rules, 2018. After Siddika submitted her written explanation and sought a personal hearing, a hearing was held on December 3, 2025.
Subsequently, an inquiry officer was appointed, who concluded that the charges of misconduct had been proven beyond doubt.
After reviewing the show-cause reply, inquiry report and all relevant documents, the competent authority decided to impose a penalty under Rule 4(2)(gh) of the 2018 rules.
As a result, Siddika’s basic salary has been reduced by two grades—from Tk 71,200 to Tk 65,820.
The order also stated that her temporary suspension has been withdrawn and that the decision will take effect immediately.
4 days ago
A turbulent 18 months at NBR, as various reform initiatives rolled out
The National Board of Revenue (NBR), under the interim government, has implemented a series of significant reform initiatives within a short period to modernise revenue administration, enhance trade facilitation, accelerate digitalisation and expand the tax base.
These measures aim not only to increase revenue collection but also to make the tax system more transparent, accountable and investor-friendly. Early indications suggest that the initiatives have already begun yielding positive results, according to a release from the revenue collecting authority.
Read: NBR targets faster cargo clearance, simpler customs rules, says its chairman
As part of structural reforms, the government promulgated the Revenue Policy and Revenue Management Ordinance, 2025, separating revenue policy formulation from revenue management.
The National Implementation Committee for Administrative Reform (NICAR), chaired by the Chief Adviser, has approved amendments to the Rules of Business and Allocation of Business to operationalise two separate divisions—Revenue Policy Division and Revenue Management Division. This decision is being seen as a major milestone in reforming the NBR’s institutional framework.
Through enhanced monitoring, transparency and accountability measures, the NBR has intensified efforts to curb tax evasion and recover previously evaded taxes. As a result, revenue collection has gained momentum. From July to December 2025, the NBR collected Tk 1,85,229 crore, which is Tk 23,020 crore higher than the collection during the same period of the previous fiscal year.
With World Bank financing, international tenders have been floated for the construction of a world-class, modern Customs House and Customs Academy in Chattogram. Separately, the tender process for constructing a state-of-the-art tax building in Chattogram using government funds has been completed, and construction is set to begin shortly. The Khulna Tax Building has already been completed and is scheduled to be inaugurated on January 29, 2026.
Read More: NBR’s two divisions, health sector reforms among proposals get NICAR nod
As part of long-term planning, the NBR has adopted a 10-year Medium and Long-Term Revenue Strategy (MLTRS) aimed at increasing the revenue-to-GDP ratio and strengthening structural capacity. To advance digital revenue management, the World Bank-funded Strengthening Domestic Revenue Mobilization Project (SDRMP), with an estimated cost of nearly Tk 1,000 crore, has been undertaken to bring all NBR operations onto digital platforms.
To gradually move away from a culture of tax exemptions, the government has formulated and gazetted the Tax Expenditure Policy and Management Framework (TEPMF). Amendments to the Income Tax Act 2023, Customs Act 2023 and VAT and Supplementary Duty Act 2012 have withdrawn the NBR’s authority to grant tax exemptions, making parliamentary approval mandatory for any future exemptions.
Authentic English texts of the VAT and Supplementary Duty Act 2012, Customs Act 2023, Income Tax Act 2023 and VAT Rules 2016 have been published in the official gazette. This move is expected to reduce ambiguity in legal interpretation, boost investor confidence and improve the overall investment climate.
To expand the income tax base and improve taxpayer services, the NBR has awarded Income Tax Practitioner (ITP) certificates to 13,500 individuals through competitive examinations. For the first time, income tax professionals were involved in the entire written and viva examination process.
In collaboration with the Finance Division, the NBR has introduced an online system allowing importers, exporters and their nominated C&F agents to pay customs duties and taxes directly into the government treasury through A-Challan. The system has been integrated with ASYCUDA World and iBAS++, enabling payments from bank accounts or mobile financial services (MFS). bKash has already enabled tax payments without service charges, with the facility open to other MFS providers as well.
Read More: NBR launches automated system easing compliance for importers
Giving top priority to trade facilitation, the NBR has been holding monthly stakeholder consultations, allowing business representatives to directly raise field-level customs, VAT and income tax issues with senior officials, leading to quicker resolution of problems.
To strengthen cyber security, a Security Operations Centre (SOC) has been established at the NBR in line with National Cyber Security Agency (NCSA) guidelines. The SOC now provides round-the-clock monitoring and protection against cyber threats targeting customs systems and sensitive data.
To support the government’s initiative to reduce Hajj costs, excise duty exemptions have been granted on airline tickets for Hajj pilgrims for 2025 and 2026. VAT exemption on metro rail services has been extended until June 30, 2026, to promote environmentally friendly mass transport.
Ahead of Ramadan, import duties on dates have been reduced by 40 per cent and advance income tax by 50 per cent. To keep essential commodity prices within public reach, various taxes and duties on rice, potatoes, onions, sugar, eggs, fresh fruits, edible oil, canola oil and pesticides have been waived.
New baggage rules issued in 2025 now allow travellers to bring one new mobile phone per year without duty, while eligible expatriate Bangladeshis can bring two duty-free phones annually. Customs duty on mobile phone imports has been reduced from 25 per cent to 10 per cent, alongside a reduction in duties on components for local assemblers, which is expected to lower handset prices significantly.
The NBR has expanded VAT digital services, including online registration, e-returns, e-payment, e-refund, VAT smart invoices and risk-based audits. A nationwide VAT registration campaign in December 2025 brought 131,000 previously unregistered businesses into the VAT net, raising the total number of registered entities to 775,000 from 516,000 before the interim government assumed office.
Online VAT refund modules have been launched, enabling direct transfers to taxpayers’ bank accounts through BEFTN. On the income tax side, online return filing has been made mandatory for most taxpayers, resulting in more than 3.4 million e-returns submitted this fiscal year.
Special facilities have been introduced for expatriate taxpayers, automated risk-based audit selection has been implemented, and spot assessment programmes have been launched nationwide to encourage voluntary compliance.
In customs, the Bangladesh Single Window (BSW) is now operational, integrating 19 agencies and issuing nearly 900,000 certificates, licences and permits online. New regulations for shipping agents and C&F agents have been introduced, alongside digital systems for bonded warehouse management, truck movement tracking and valuation transparency through integration with Bangladesh Bank systems.
The NBR has also taken decisive steps to reduce container congestion at Chattogram Port by auctioning long-stalled containers, significantly easing port pressure.
Overall, through policy reforms, technology-driven management and enhanced administrative capacity, the NBR has demonstrated visible transformation of the revenue system during the interim government’s short tenure—contributing to fiscal stability and laying a foundation for sustainable economic development.
10 days ago
BTMA threatens shutdown of all spinning mills over duty-free yarn imports
Bangladesh Textile Mills Association (BTMA) on Thursday threatened to shut down all spinning mills across the country from February 1 if the government does not withdraw duty-free import facilities for certain categories of cotton yarn.
BTMA President Showkat Aziz Russell issued the ultimatum at a press conference held at the association’s office in Dhaka.
The association is demanding the immediate suspension of bond facilities on the import of 10–30 count cotton yarn, arguing that the measure is essential to protect the local spinning industry from what it describes as unfair competition.
11 more institutions inc. banks, municipal bodies join BIDA’s One-Stop Service portal
The dispute centres on the National Board of Revenue’s (NBR) bond facility, which allows export-oriented industries to import raw materials duty-free on the condition that the finished products are exported.
According to the BTMA, this policy is severely undermining local spinning mills, particularly those producing 10–30 count yarns.
Highlighting the urgency of the issue, the BTMA said the government must implement the Commerce Ministry’s recommendation to withdraw the facility within the current month.
Russell clarified that withdrawing the duty-free facility should not be confused with the imposition of a new tariff. Importers, he said, would still be able to claim duty drawbacks from the government under existing rules.
The demand follows a recent recommendation by the Bangladesh Trade and Tariff Commission (BTTC), which advised the Commerce Ministry to suspend the bond facility for 10–30 count cotton yarn.
Proposed amendments to Bank Company Act faces fierce opposition from BAB
Local millers say 10–30 count yarn is a core product of the domestic spinning sector, and the continued influx of duty-free imported yarn of the same count is making local production economically unsustainable.
Earlier, the Commerce Ministry formally recommended to the NBR that the bond facility be suspended to safeguard domestic investment and ensure a level playing field for local textile manufacturers.
14 days ago
NBR’s two divisions, health sector reforms among proposals get NICAR nod
The government on Tuesday approved a proposal to establish two administrative divisions - the Revenue Policy Division and the Revenue Management Division - aimed at improving transparency, accountability and efficiency in revenue collection and management.
The approval was granted at the 119th meeting of the National Implementation Committee for Administrative Reforms/Reorganisation (NICAR), which was also the first meeting held during the tenure of the interim government.
The meeting took place at the state guesthouse Jamuna, chaired by Chief Adviser Prof Muhammad Yunus. A total of 11 proposals related to administrative reorganisation were approved at the meeting.
Govt orders deposition of licensed firearms by Jan 31 ahead of election
Chief Adviser’s Press Secretary Shafiqul Alam briefed reporters after the meeting.
The Revenue Policy and Revenue Management Ordinance, 2025, has already been issued, according to the Chief Adviser’s press wing.
Advisers, Secretaries and Senior Secretaries of the government, including the Cabinet Secretary and the Principal Secretary, were present at the meeting.
The committee also approved a proposal to restructure the Ministry of Health and Family Welfare by merging the Health Services Division and the Health Education and Family Welfare Division.
A proposal to rename the Ministry of Women and Children Affairs as the Ministry of Women and Children was approved. However, the English name of the ministry, Ministry of Women and Children Affairs (MoWCA), will remain unchanged.
Considering environmental global heritage, tourism, and economic potential, the proposal to upgrade Satkhira district from a ‘B’ category district to an ‘A’ category district was also approved.
The meeting also approved proposals to establish three new police stations - Purbachal North in Gazipur district, Purbachal South in Narayanganj district, and Matarbari in Cox’s Bazar district.
Govt clarifies Prof Yunus’ support for ‘Yes’ vote
Besides, a proposal to establish another police station by splitting Raipura police station in Narsingdi district was approved.
The committee approved a proposal to correct the spelling of the Bhulli police station in Thakurgaon district.
16 days ago
NBR launches automated system easing compliance for importers
The National Board of Revenue (NBR) on Sunday (January 18, 2026) launched an automated system that allows income tax paid at the import stage to be directly credited to taxpayers’ electronic income tax returns, significantly easing long-standing compliance hassles for importers.
The new facility has been introduced through the successful integration of the NBR’s e-return system with ASYCUDA World, the customs clearance platform.
From now on, advance income tax paid during import will automatically appear as a credit in the concerned taxpayer’s e-return.
Officials said the move has effectively ended years of difficulties faced by importers in adjusting import-stage income tax against their final tax liability.
Read More: NBR sees growing use of e-returns by expatriate Bangladeshis
At the same time, it has made the process of filing e-returns simpler and more efficient for importing businesses.
Under the new system, when an importer enters business income details in the e-return for a particular assessment year, information related to advance income tax paid against each Bill of Entry during that year will be displayed automatically.
The credited amount is then deducted from the total payable income tax, enabling the system to determine the final tax payable along with the return.
The NBR noted that the initiative is part of its broader effort to digitise tax administration and improve taxpayer services through automation and system integration.
The e-return system for the 2025–26 tax year was formally inaugurated on August 4, 2025 by Finance Adviser Dr Salehuddin Ahmed through the website www.etaxnbr.gov.bd.
Read More: NBR links ASYCUDA World with BGMEA e-UD system to modernise bond management
Since the launch, more than 4.6 million taxpayers have registered on the e-return platform, while around 3.3 million taxpayers have already submitted their income tax returns online.
Notably, the NBR said, many individuals for whom e-return filing is not mandatory are also voluntarily submitting their returns through the online system, indicating growing acceptance of digital tax services.
The scope of the system has also been expanded to include non-resident Bangladeshis.
Expatriate taxpayers can now register and submit their income tax returns online. So far, nearly 4,000 expatriate Bangladeshis have filed their income tax returns for the 2025–26 tax year through the e-return system.
According to the NBR, taxpayers are not required to upload any supporting documents or papers while filing returns online.
The authority reiterated that its efforts are focused on enabling individual taxpayers to pay taxes and submit returns easily from home, without physical visits to tax offices.
The NBR has urged all individual taxpayers to submit their income tax returns online through the e-return system by January 31, 2026.
Read more: Mobile phone prices set to fall as NBR slashes import duty
18 days ago
Mobile phone prices set to fall as NBR slashes import duty
The National Board of Revenue (NBR) on Tuesday (January 13, 2026) slashed customs duty on imported mobile phones by 60 per cent aimed at keeping handset prices within the purchasing capacity of consumers amid rising living costs.
It issued two separate statutory regulatory orders in this regard.
According to an NBR notification, the customs duty on imported finished mobile phones has been reduced to 10 per cent from the existing 25 per cent.
The revenue authority said the decision was taken to ensure that mobile phones remain affordable for the general public and to facilitate wider access to digital services.
Read more: NBR links ASYCUDA World with BGMEA e-UD system to modernise bond management
To protect local mobile phone assembling companies from facing adverse competition due to the duty cut on finished handset imports, the NBR simultaneously reduced customs duty on the import of raw materials and components used by domestic assemblers.
In another notification, the duty on importing such components has been lowered to 5 per cent from 10 per cent.
The NBR said the dual measures were designed to strike a balance between consumer interest and the sustainability of the domestic mobile phone assembling industry.
As a direct impact of the revised duty structure, the government estimates that the price of each imported finished mobile phone priced above Tk 30,000 will fall by around Tk 5,500.
Meanwhile, the price of each locally assembled mobile phone in the same price segment is expected to decline by approximately Tk 1,500.
With mobile phones playing a critical role in communication, digital financial services, e-governance and education, ensuring affordability has become a key policy priority, NBR officials said.
The revenue authority also reaffirmed that the government’s efforts to keep mobile phone prices within the reach of consumers would continue in line with its broader goal of promoting digital inclusion and expanding access to technology across the country.
At the same time, Bangladesh has introduced the National Equipment Identity Register as a major regulatory step aimed at curbing the use and trade of illegal, counterfeit and unregistered mobile handsets, strengthening consumer protection and safeguarding government revenue.
Launched under the supervision of the Bangladesh Telecommunication Regulatory Commission, the NEIR system requires every mobile phone to be registered through its unique International Mobile Equipment Identity number before it can access cellular networks.
Authorities say the platform will help block stolen or smuggled devices, reduce grey market imports, improve network security and ensure a level playing field for compliant importers and manufacturers who pay applicable duties and taxes.
Read more: NBR launches e-VAT module for paper-based returns
However, the rollout has triggered protests from mobile phone traders across the country particularly small and medium retailers who fear that the system could disrupt business and impose new financial and administrative burdens.
Protesters have demanded a longer transition period, clearer guidelines, amnesty for existing stock and stronger public awareness campaigns before full enforcement.
23 days ago
NBR links ASYCUDA World with BGMEA e-UD system to modernise bond management
The National Board of Revenue (NBR) has established an electronic interconnection between ASYCUDA World and BGMEA’s e-Utilisation Declaration (e-UD) system, aiming to modernise Bangladesh’s bond management and customs clearance processes.
The integration came into effect on January 11 with a plan to make the bond management system more modern, efficient and technology-driven, while ensuring faster assessment and clearance of bonded raw materials and exported goods, NBR officials said.
They said the initiative is also expected to strengthen transparency, accountability and competitiveness in line with international best practices.
Under the bonded warehouse facility, exporters, particularly those in the readymade garment sector, can import raw materials duty-free against their export commitments.
Previously, verification of Utilisation Declarations (UDs) involved manual processes and reliance on BGMEA’s internal system.
This often resulted in procedural complexities, delays in clearance, and challenges in ensuring effective oversight, revenue protection and accountability.
With the new interconnection, UD verification will now be conducted fully online and on a real-time basis through ASYCUDA World, Bangladesh’s automated customs management system.
According to the NBR officials, the move will significantly reduce paperwork, minimise human intervention and speed up customs procedures for both imports and exports under the bond facility.
The NBR said the initiative would bring several tangible benefits, including faster and more efficient clearance of import-export consignments, reduced dependence on physical documents, and a substantial reduction in revenue risks through improved digital verification.
The integration is also expected to enhance overall risk management and strengthen safeguards against misuse of bonded facilities.
Officials noted that the successful completion of the pilot phase paved the way for the full-scale integration. Following this, the authorities plan to gradually introduce electronic UD write-off procedures, further automating the bond management lifecycle and reducing manual interventions at later stages.
The integration has been implemented as a joint initiative of the NBR and BGMEA, reflecting closer collaboration between the revenue authority and the country’s largest export-oriented trade body.
The readymade garment sector accounts for the bulk of Bangladesh’s export earnings, and efficient bond management is considered critical for maintaining its global competitiveness.
Describing the initiative as a milestone, the NBR said the interconnection is a major step towards establishing a paperless customs system in Bangladesh.
It is expected to play an important role in trade facilitation, reducing transaction costs, and aligning the country’s customs administration with international standards.
The NBR reiterated its commitment to leveraging technology to modernise customs operations, improve ease of doing business and support the country’s export-led growth, while ensuring effective revenue protection and regulatory compliance.
25 days ago
Govt seeks tax relief on LPG to ease supply crisis and curb rising costs
The Energy and Mineral Resources Division has urged the National Board of Revenue (NBR) to revise the existing VAT and tax structure on liquefied petroleum gas (LPG) imports and local production, aiming to stabilise supply and ease consumer pressure amid an ongoing market crunch.
In its letter, sent in reference to recent decisions of the Advisory Council and a petition submitted by the LPG Operators Association of Bangladesh (LOAB), the Energy Division noted that around 98 per cent of the country’s LPG demand is met through imports by private sector operators, while the fuel is widely used for household cooking as well as in industrial activities.
The letter pointed out that LPG prices typically rise during the winter season due to constrained global supply and increased domestic demand.
Traders behind LPG price manipulation: Energy Adviser
The situation has worsened as lower pipeline natural gas supply has pushed households and industries towards LPG, triggering a supply crunch that is disrupting daily life and drawing wide media attention.
Referring to a memorandum issued by the Internal Resources Division on December 23, 2025, the Energy Division cited discussions held at the Advisory Council meeting on December 18, 2025.
At that meeting, the council considered a proposal to withdraw the existing 15 per cent VAT exemption at the import stage and impose a 10 per cent VAT, while extending relief at other stages of the supply chain.
The proposal also includes retaining the 7.5 per cent VAT at the local production stage, alongside exemptions from VAT at the business or trading stage and exemption from advance income tax.
According to the Advisory Council, such a restructuring could help rationalise the overall tax burden on LPG and contribute to price stability.
LPG crisis artificial, stern action to be taken: Ministry
The council, however, stressed that any revision must be supported by a detailed analysis of its impact on consumers.
The meeting minutes recorded that it is essential to assess the extent to which LPG purchase costs at the consumer level would fall if the proposed measures are implemented.
To ensure this, the Advisory Council directed the Energy and Mineral Resources Division, the Ministry of Commerce and the Internal Resources Division to carry out a coordinated review and resubmit the proposal to the council with a clear assessment of consumer price implications.
The Energy Division also informed the NBR that the issue had been discussed in a meeting with leaders of the LPG Operators Association of Bangladesh (LOAB).
While the division expressed agreement with the Advisory Council’s broader approach, LOAB representatives reiterated their demand for zero per cent VAT at the import stage, opposing the proposed 10 per cent rate.
Despite this difference, official records indicate that LOAB had broadly aligned with the Advisory Council’s deliberations, though disagreements remain over the specific VAT rate at the import level.
The Energy Division said that policy support through a rationalised VAT and tax structure is crucial to maintaining normal LPG supply, particularly at a time when pipeline gas availability remains limited.
LPG prices for Jan up but BERC admits lack of control over retailers
It urged the NBR to take necessary steps in line with the Advisory Council’s guidance, taking into account the prevailing market situation and the need to protect consumers from further price shocks.
LP Gas Traders Cooperative Society announced an indefinite countrywide strike from Thursday in the marketing and supply of the fuel, demanding higher distribution and retail charges.
28 days ago
NBR launches e-VAT module for paper-based returns
The National Board of Revenue (NBR) has taken a step towards fully digitising the country’s VAT administration by introducing a new initiative that allows taxpayers to bring all previously submitted paper-based VAT returns under the e-VAT system.
It has added a sub-module titled “Hard Copy Return Entry” to the e-VAT platform, enabling taxpayers to directly enter their past hard copy monthly returns into the online system.
The revenue authority issued a circular to this end on Monday outlining the operational procedures of the newly added sub-module.
Taxpayers who had earlier submitted VAT returns in paper form can now upload and store those returns in the e-VAT system themselves, following the instructions in the circular.
Read more: Bangladesh exports rise in Dec on monthly momentum, still down from year earlier
The measure is expected to reduce administrative bottlenecks, minimise errors, and make compliance easier for thousands of VAT payers nationwide.
Currently, paper returns are entered into the e-VAT system by the Central Processing Centre (CPC) of the respective VAT commissionerates.
In this manual process, officials input data from hard copy returns, which often creates complications in assigning responsibility for errors and increases the workload of VAT offices.
Manual entry of large volumes of returns is also time-consuming, delaying updates in the e-VAT system. As a result, many taxpayers have faced automatic imposition of interest and penalties, despite submitting their returns on time.
In some cases, taxpayers were unable to file online VAT returns as the system does not permit submission without clearing the imposed penalties.
The NBR said the new Hard Copy Return Entry sub-module is designed to resolve these long-standing issues.
Taxpayers who submitted paper returns within the legally prescribed time under Section 64 of the VAT and Supplementary Duty Act, 2012, can now enter those returns into the e-VAT system without incurring any interest or penalty.
Eligible taxpayers will receive notifications via email and mobile phone with a link to the e-VAT system, allowing them to use the sub-module and complete the data entry themselves.
The NBR set a deadline of March 31, 2026, for uploading all previously submitted paper returns without any penalty or interest.
NBR launches Security Operations Centre to strengthen cyber security
Once historical returns are fully uploaded, taxpayers will be able to submit all future VAT returns online without interruption.
The revenue authority said the initiative is part of its broader effort to digitise tax administration, improve transparency, and ensure greater accountability in the VAT system.
The NBR also urged taxpayers to cooperate fully to make the transition smooth and effective.
1 month ago