NBR
NBR: International trade to go fully online under a single window next month
In a significant step the National Board of Revenue (NBR) will formally launch Bangladesh Single Window (BSW) system next month to speed up international trade online.
The system, considered by NBR a milestone in making businesses faceless and digital, had a soft launch last month, officials said this week.
This platform aims to streamline the import and export processes by integrating multiple regulatory agencies into a unified digital framework.
The BSW is designed to automate and simplify procedures related to international trade, allowing traders to submit necessary documents such as certificates, licenses, and permits (CLPs) through a single online portal, according to NBR papers.
This initiative is expected to reduce bureaucratic delays, enhance transparency, and lower the costs associated with trade activities.
Initially, seven out of the 19 targeted regulatory agencies have been integrated into the system.
These include the Directorate General of Drug Administration, the Export Promotion Bureau, the Department of Explosives, the Bangladesh National Authority for Chemical Weapons Convention, the Bangladesh Economic Zones Authority, the Bangladesh Export Processing Zones Authority, and the Department of Environment.
“We hope that the 12 others authorities would be on board from next month,” NBR Chairman Md Abdur Rahman Khan told a recently held programme at the NBR.
He said that business people would be able to get various kind of licenses and permits from one single window.
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“Request and deluvery pricess will be done from a single window. It will be a totally faceceless environemnt. The husiness people will not need to go anywhere,” the revenue collecting boss said.
The NBR has mandated that, effective from this February 1 all import and export-related CLPs for these seven agencies must be submitted exclusively through the BSW system, discontinuing manual submissions.
Furthermore, the NBR has set a deadline of March 1 this year for the remaining 12 agencies to integrate into the platform. Failure to comply may result in administrative actions, as emphasised by Finance Adviser Dr. Salehuddin Ahmed during last month's launch event.
While the BSW represents a commendable effort towards modernizing Bangladesh’s trade infrastructure, its partial launch after an eight-year gestation period raises concerns about the efficiency and effectiveness of project implementation.
Initiated in 2017 during the Awami League regime, the project’s prolonged timeline has delayed the anticipated benefits for the trading community.
The initial plan envisioned the integration of 19 agencies. However, as of now, only seven have been incorporated, with the rest pending integration by the newly set deadlines.
The staggered integration of agencies could pose challenges for traders who interact with multiple regulatory bodies, potentially leading to confusion and operational inefficiencies during the transition period.
Moreover, the success of the BSW hinges not only on the technological infrastructure but also on the readiness and adaptability of the involved agencies and the trading community.
Comprehensive training programmes and change management initiatives are essential to ensure a smooth transition from manual to digital processes, officials involved in the project mentioned.
Another critical aspect is the system’s robustness and security, the NBR officials said speaking on condition of anonymity.
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Given the sensitive nature of trade data, the BSW must incorporate stringent cybersecurity measures to protect against data breaches and unauthorised access.
Past incidents, such as the 2022 breach of the NBR’s server to release cargo at Chittagong Port, highlight the vulnerabilities in existing systems and underscore the need for enhanced security protocols in the BSW.
Furthermore, the effectiveness of the BSW in reducing corruption and enhancing transparency will depend on its ability to minimize human intervention in the approval processes, a senior NBR official said wishing anonymity as he is not authorised to speak on the subject.
While automation can streamline procedures, it is imperative to establish clear accountability mechanisms to prevent potential misuse or manipulation of the system.
The NBR said its initiative to implement the BSW aligns with global best practices in trade facilitation, aiming to create a more efficient and transparent trading environment in Bangladesh.
However, the partial and delayed implementation raises questions about project management and inter-agency coordination.
To realize the full potential of the BSW, it is crucial for the NBR and the associated agencies to expedite the integration process, ensure system security, provide adequate training to stakeholders, and establish robust monitoring mechanisms to oversee the system’s performance and address any emerging issues promptly.
While the launch of the BSW is a step in the right direction for Bangladesh’s trade facilitation, the challenges observed during its rollout highlight the need for a more proactive and coordinated approach to project implementation, according to analysts.
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“The success of the BSW will ultimately depend on the collective commitment of the NBR, the integrated agencies, and the trading community to embrace and effectively utilize this digital platform,” according to another NBR official who also wished anonymity.
4 days ago
Dodgily obtained tax waivers for Shuchona Foundation scrapped
National Board of Revenue (NBR) on Monday scrapped two SROs related to tax waivers granted to the Shuchona Foundation, a non-profit and voluntary organisation run by Saima Wazed Putul, daughter of deposed prime minister Sheikh Hasina.
The Foundation was founded by former prime minister Sheikh Hasina's daughter Saima Wazed Putul.
The two SROs were issued on April 6, 2016 and June 19, 2013.
Putul’s Shuchona Foundation has no registered address: ACC
The move of the revenue collecting authority came at a time when the Anti-Corruption Commission (ACC), after the change of Awami League regime, initiated a legal enforcement operation following allegations of misappropriation of state funds through irregularities and corruption by the foundation’s president and several others.
On Wednesday they said that the Shuchona Foundation has no registered address and its illegal activities have been revealed.
To investigate the tax exemptions granted to Shuchona Foundation, the team obtained relevant Statutory Regulatory Orders (SROs) from the National Board of Revenue (NBR).
Upon review, the ACC team found preliminary evidence that the foundation had been exempted from paying income tax on all its earnings, including interest from permanent and savings bank deposits, consultancy fees, and research fees since 2016.
Shuchona Foundation receives Tk 10 lakh as donation
The ACC revealed that Saima Wazed, the Regional Director of the World Health Organization (WHO) for South-East Asia, had inaccurately provided information regarding her eligibility when she was nominated for the position, as she was a Canadian citizen at the time.
The ACC also said that there are credible corruption allegations against her.
According to the ACC, Saima Wazed allegedly misused her influence to secure financial benefits for the Shuchona Foundation, receiving gifts and funds from various social and business institutions.
The ACC sources further claimed that Saima exerted undue influence over the NBR to secure tax exemptions for the foundation’s entitled funds.
Earlier, on November 24, the Bangladesh Financial Intelligence Unit (BFIU), the financial intelligence wing of the Central Bank, had ordered the freezing of the bank accounts of Shuchona Foundation.
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It received crores of taka in donations from the country's top business conglomerates.
Founded in 2014, Saima Wazed Putul, along with three other trustees — Muzharul Mannan, Md Shamshuzzman, and Zain Bari Rizvi — oversee the Shuchona Foundation, an organisation dedicated to supporting individuals with mental disabilities, neurological disorders, autism, and mental health challenges.
Putul currently serves as the regional director for Southeast Asia at the World Health Organisation (WHO).
Following the fall of the Awami League government on 5 August last year, several cases have been filed against her over various irregularities and corruption allegations.
5 days ago
NBR to fully operationalise bond automation this month to boost trade efficiency
The National Board of Revenue (NBR) is set to fully operationalise its Bond Automation system this month, aiming to enhance efficiency, transparency, and accountability in Bangladesh’s trade operations.
NBR sources confirm that the revenue authority was prepared to roll out the system last month but postponed due to a lack of readiness among businesses.
“Due to insufficient preparation from the business community, we have deferred the process by a month,” NBR Chairman Md Abdur Rahman Khan said at a recent event marking World Customs Day.
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He noted that one of the most frequent complaints he receives is regarding the bond management system.
The NBR’s Bond Automation initiative is a key part of its efforts to curb misuse, which has been causing significant revenue losses to the national exchequer in the form of unpaid duties and taxes, officials said.
Under the bonded warehouse system, export-oriented industries are allowed to import duty-free raw materials, such as fabrics, against a commitment to export the finished goods.
This system helps keep Bangladesh’s exports competitive by reducing production costs and shortening lead times.
The garment sector, which accounts for a major portion of Bangladesh’s exports, benefits significantly from this facility.
According to the Dhaka Customs Bond Commissionerate, 90% of woven fabric, 45% of garment accessories, and 35% of knit fabric for the readymade garment (RMG) sector are imported under the bond system, while the rest is sourced locally.
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However, some unscrupulous traders abuse the facility by selling duty-free imports in the local market instead of using them for export production.
“We want to curb duty and tax evasion,” a senior NBR official told UNB. “We are at the final stage of setting up the automation system, but additional research is being conducted to ensure effectiveness.”
The automation system will enable authorities to track materials imported under bond facilities, reducing opportunities for misuse.
The initiative is designed to streamline key processes, including the issuance of Utility Permission (UP) for garment accessories exporters and Utility Declaration (UD) for garment exporters. This will facilitate faster processing and improve accountability in the system.
NBR extends income tax return submission deadline
NBR had announced that all customs bond services are ready for implementation, with bond license holders required to complete their transition by December 31, 2024.
The Bond Automation project was initially launched in 2017, with a completion target of June 2021.
However, delays in implementation led to an extension until June 2023. Now, with the final phase underway, the NBR is confident that the system will soon be fully functional.
The automation of bonded warehouse services is expected to bring several advantages:
Enhanced Efficiency: By reducing paperwork and manual processing, the system will accelerate bond-related activities, benefiting exporters.
Improved Transparency: Digital monitoring will minimize opportunities for misuse and ensure greater accountability among stakeholders.
Cost Reduction: Streamlining procedures will lower business costs, making exports more competitive.
Trade Facilitation: Faster and more efficient processing of bond-related services will create a smoother trade environment, boosting exports.
Local traders and industry leaders have long demanded stricter enforcement against those who exploit the bond system. The automation project is expected to address these concerns by strengthening oversight and ensuring compliance.
NBR’s commitment to automating the bond system aligns with Bangladesh’s broader strategy to modernize trade facilitation and expand its export base. By implementing digital solutions, the government aims to reduce foreign exchange losses and enhance competitiveness in global markets.
As the implementation progresses, stakeholders remain optimistic that the new system will bring much-needed reform, improving efficiency and accountability in the country’s bonded warehouse operations.
1 week ago
NBR extends income tax return submission deadline
The National Board of Revenue (NBR) on Thursday extended the deadline for submitting income tax returns till February 16.
The last date of submitting income tax returns of all categories of taxpayers except those of companies for 2024-2025 fiscal year was January 31.
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The revenue authority issued an order extending the time for submission of income tax returns for both online e-return and offline filing of paper returns for all taxpayers except companies for the convenience of taxpayers.
It also extended the deadline for companies to submits tax return by one month till March 16.
2 weeks ago
High-level panel wants a commission to boost NBR's capacity in revenue collection
A high-level advisory panel has suggested formation of a commission for the National Board of Revenue to tighten tax administration and boost revenue collection based on sound policies.
The proposed Revenue Commission will work to formulate revenue policies in light of the government's overall development policy strategy, proposals and suggestions from stakeholders, and specific policies formulated based on international best practices, as per the interim proposal that was submitted recently.
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It will have a permanent advisory council comprising appropriate representatives of the Ministry of Industry, Ministry of Commerce, Finance Department, Bangladesh Bank, Tariff Commission, eminent economists, persons with experience in tax and fiscal matters, representatives of business organisations, and representatives of think tanks and civil society.
The proposals have been made in a preliminary report by a five-member advisory committee the interim government formed in October last year to initiate positive reforms in the NBR.
The advisory committee comprises NBR's ex-chairmen Muhammad Abdul Mazid and Dr Nasiruddin Ahmed and three former members -M Delowar Hossain, Farid Uddin and Aminur Rahman.
The advisory committee has been tasked to make suggestions on fiscal policy reforms, revenue administration reforms, assess the institutional capacity of the National Board of Revenue and provide recommendations for modernisation, advise on formulation of institutional frameworks and policies for integrity and good governance, advise on citizen communication and stakeholder engagement activities and any other policy advice related to revenue reforms.
The interim report said that skilled and dedicated officers with sufficient knowledge and experience in tax revenue policy and tax revenue management from among the officers in the Income Tax, Customs and VAT cadres will be appointed by the government as Secretary/Senior Secretary of the Revenue Commission on the basis of specific policies.
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Skilled and dedicated officers with knowledge and experience in formulating and implementing the revenue policy of the National Board of Revenue i.e. the Revenue Service will be appointed to this office for a fixed term on the basis of specific policies as per the needs of the organisational structure of the Revenue Commission.
This council will provide regular advice to the Revenue Commission on the determination of customs and tax policies on a minimum quarterly basis in the light of the policies formulated in consultation with stakeholders and international best practices.
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The Customs and VAT Appellate Tribunal and the Income Tax Appellate Tribunal will be vested in the reconstituted Revenue Commission.
It would be reasonable for the location of the reconstituted Revenue Commission to be outside the Secretariat and outside the Revenue Building to facilitate the travel and communication of stakeholders (including the Appellate Court) in accessing tax policy services.
2 weeks ago
Taxpayers can submit income tax return online round the year: NBR chairman
Taxpayers can now submit their income tax return round the year online but they have to pay extra charge.
National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan made the announcement while speaking at the World Customs Day programme held at the Multipurpose Hall of the NBR where Finance Adviser Dr Salehuddin Ahmed was the chief guest.
He said online return submission has become popular as some 12 lakh taxpayers have submitted their returns so far this way.
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He hoped that by January 31, the last day of the income tax return submission, it would be around 14 lakhs
He said that the tax calculation up to January 31 will different than the submission after January deadline.
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“Automatically the taxpayers who will submit their returns after January 31 will have to bear some burden,” he said.
The NBR Chairman said the rate will be two percent extra over the tax amount for each month.
“The maximum ceiling is 24 months and we will not take any interest over 48 percent,” he said.
3 weeks ago
Close to Tk 58,000 crore revenue collection deficit in first 6 months of FY 2024-25
The revenue collection deficit in the first six months of the running 2024-25 fiscal is close to Tk 58,000 crore.
In July-December, the NBR's revenue collection target was Tk 214,000 crore. And Tk 156,276 crore was collected.
The amount is Tk 10,000 crore less than the same period in the last fiscal.
The revenue collection in the first six months of the 2023-24 fiscal year was Tk 1,65,630 crore.
Revenue officials say that business and trade were disrupted due to student and public agitation and political unrest in July-August. This has affected revenue collection.
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Only one-third or 32.5 percent of the target revenue was collected in the first six months of the fiscal year.
The NBR has a target revenue collection of Tk 480,000 crore in the current fiscal year.
According to NBR sources, the deficit in customs and tax collection against the target in the first six months of the current fiscal year stood at about Tk 57,724 crore.
According to NBR sources, none of the three sectors - imports, VAT and income tax - met the six-month target during July-December.
During this period, the highest deficit was recorded in the income tax sector. The revenue collection target in this sector was Tk 76,670 crore. Against that, Tk 52,162 crore was collected.
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On the other hand, in the first six months of the fiscal year, the import duty sector collected Tk 49,800 crore against the target of Tk 61,952 crore.
In July-December, Tk 55,177 crore was collected as VAT. At that time, the target of VAT was Tk 66,317 crore.
3 weeks ago
NBR explains heavy tax cut in import of air purifiers
The National Board of Revenue (NBR) on Tuesday said the import cost of air purifiers will be reduced from Tk 1,500 to Tk 7,000 each depending on the quality following the cut in the import duty along with exemption of regulatory duty (RD) and advance tax (AT).
In a press release issued today, it said that as a result of this exemption, the total tax burden on air purifier imports has been reduced from 58.60% to 31.50%.
On Monday the NBR issued a notification reducing the existing customs duty (CD) on air purifier imports from 25% to 10% and completely exempting them from paying 3% regulatory duty and 5% advance tax.
NBR to install EFD in all jewellery shops to enhance revenue collection
Currently, according to the NBR press release, Dhaka and other cities in Bangladesh are among the world's worst-hit air polluted metropolises. This air pollution is causing widespread damage to public health and causing huge financial losses to the people.
In that context, the NBR took the decision to combat the harmful effects of air pollution by reducing customs duties at the import level and making effective air pollution control equipment like air purifiers easily available, said the release.
Due to the reduction in import cost, the NBR hoped that the air purifiers will be easily available to the public at a lower price.
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The NBR said it believes that the widespread use of air purifiers will be helpful in preventing the adverse effects of air pollution on public health.
Meanwhile, Dhaka, the densely populated capital of Bangladesh, ranked as the city with the third-worst air quality worldwide, registering an Air Quality Index (AQI) score of 244 on Tuesday morning at 8:50am.
According to the AQI index, the city’s air quality on the day fell under the “very unhealthy” category, indicating a severe health risk.
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The AQI scale categorizes air quality levels as follows: a score between 50 and 100 is deemed ‘moderate’, suggesting sensitive individuals should limit prolonged outdoor activities; 101 to 150 is classified as ‘unhealthy for sensitive groups’; 150 to 200 is considered ‘unhealthy’; 201 to 300 falls under ‘very unhealthy’; and a reading above 300 is labeled ‘hazardous’, posing significant health risks to the public.
3 weeks ago
NBR to install EFD in all jewellery shops to enhance revenue collection
The National Board of Revenue (NBR) has taken a move to install electronic fiscal device (EFD) all jewellery shops across the country, aiming to enhance the revenue collection from this sector.
At the initial stage the EFD will be installed in all jewellery shops in Dhaka, Narayanganj, Narsingdi, Munshiganj, Manikganj, Savar, Gazipur, Mymensingh, Netrakona, Kishoreganj, Sherpur, Tangail, Jamalpur, Chattogram, Cox's Bazar, Bandarban, Khagrachhar and Rangamati districts soon.
The National Board of Revenue issued a letter in this regard on Sunday.
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The revenue collecting authority held a meeting with the leaders of the Bangladesh Jewellers Association (Bajus) on January 7 at the NBR regarding the establishment of EFD.
Association leaders raised various problems in the jewellery sector.
Some of the problems were related to VAT, baggage rules, gold import, etc.
They informed that there are still many institutions in the jewellery sector which are not registered under VAT.
The leaders said that by registering unregistered institutions, establishing EFD in all institutions, and solving other problems in this sector in a reasonable and fair manner, the government's revenue collection will increase and this sector will flourish.
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The National Board of Revenue officials sought the cooperation of the Association in this regard while the leaders assured that they will provide all possible cooperation.
An awareness creating Zoom meeting will be held with the stakeholders on January 23 at 3pm in this regard.
After the meeting, Genex Infosys PLC, Ltd. will install EFD, according to the official letter issued by the NBR.
Therefore, a list of jewellery establishments located in various markets and areas under the jurisdiction of Dhaka (East/West/North/South/Chittagong) Commissionerate is required, the letter said.
In this situation, a request has been made to the association provide a list of jewellery establishments in the markets and areas of Dhaka, Narayanganj, Narsingdi, Munshiganj, Manikganj, Savar, Gazipur, Mymensingh, Netrakona, Kishoreganj, Sherpur, Tangail, Jamalpur, Chattogram, Cox's Bazar, Bandarban, Khagrachhari and Rangamati.
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If it is not possible to provide all the lists together, it is requested to provide them partially, the letter added.
At present the number of registered VAT payers is just over 500,000 although a significant number of eligible businesses operating outside the system.
3 weeks ago
NBR reforms possible, but can’t be done overnight: Mazid
Muhammad Abdul Mazid, a member of the advisory committee to initiate reforms in the National Board of Revenue (NBR), on Thursday said they will propose implementable proposals for the revenue collecting authority.
“We will give an implementable proposal, the government would go that way,” he said while holding a view exchange meeting with the Economic Reporters’ Forum at the NBR.
But he said that this suggestion must not be implemented overnight.
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“We have to step into a path, we have to initiate the process, this is not like that we will not be able to do,” he said.
Mazid, former chairman of NBR, currently is chairman of the Social Development Foundation. He said it won’t be wise to expect a hundred percent achievement right now.
“That’s why we are not going to give specific time frame,” he said.
He also mentioned that there is nothing to be revolutionary. “This can’t be done, our society also does not support that system,” he said.
The former NBR chairman said that the committee wanted to build up a better understanding among all stakeholders.
He said that the committee already gave an interim report. “Now it is in the court of the government,” he said.
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But he put emphasis on the implementation of the proposals during the tenure of the interim government.
The committee members and former NBR chairman Nasiruddin Ahmed and former NBR member Farid Uddin were present at the meeting while ERF president Doulot Akter Mala led the ERF team.
The government on October 9 last year formed the committee to provide recommendations on tax policy reforms, improvements in tax administration, automation and other related matters. The other two members are: Delwar Hossain and Aminur Rahman.
1 month ago