United News of Bangladesh

Finance Adviser Dr Salehuddin Ahmed on Tuesday (November 18) said the International Monetary Fund (IMF) has expressed satisfaction with Bangladesh’s ongoing economic reforms although reiterated concerns over several structural challenges that require closer attention. “They said the situation is overall good but they are monitoring the challenges. We are working under a plan but they feel that taking some steps a little faster would bring better outcomes,” he told reporters after meetings of the Advisers Council Committee on Economic Affairs and the Committee on Government Purchase at the Secretariat. He noted that the IMF is particularly concerned about the speed of policy implementation especially surrounding interest rate adjustments. “Increasing the policy rate by the central bank cannot be done suddenly. Everyone knows that. We have to ensure supply-side improvements at the same time,” he said. Dr Salehuddin also mentioned that the IMF has raised issues related to the banking sector. “They have taken five banks under observation which they consider a major challenge,” he said, adding that the government needs to undertake tough reforms to strengthen financial governance. On revenue administration, the adviser said the IMF is satisfied with the current progress of the National Board of Revenue (NBR) but expects reforms to continue steadily. “The process has become principled but manpower restructuring and capacity enhancement will take time,” he said. Read more: Bangladesh’s reserves still remain above $31 billion after ACU payment He added that while it may not be possible to achieve a complete turnaround within the current government’s tenure substantial groundwork and structural preparations would be completed. “We may not reach the final conclusion but the logical framework and preparatory work will be done,” he assured. Responding to a question on whether the IMF has set any new conditions, Dr Salehuddin said no fresh conditions were imposed. “This was more like a consultation. They expressed satisfaction with the measures we have taken so far. The economic situation is largely under control and the remaining time will be used for consolidation,” he said. The $4.7 billion IMF loan programme, approved in January 2023, aims to support Bangladesh’s economic stability, strengthen fiscal reforms, and enhance resilience amid global economic pressures. Several tranches have already been disbursed while further installments remain tied to policy performance benchmarks and structural reforms. The IMF will delay disbursing the sixth tranche until the next national election and the new elected government assumes office. Read more: Bangladesh economy in ‘waiting vortex’; experts urge credible elections The interim government that assumed power on August 8, 2024 three days after the Awami League regime was ousted amid a mass uprising announced that the next general election would be held in February. Finance ministry officials said that theyare  expecting the releases of the sixth and the seventh tranches in June, 2026.   On June 23, the IMF approved the release of the fourth and fifth tranches amounting to $1.3 billion, taking the overall amount of disbursement to $3.6 billion. In June 2025, the IMF also increased the overall loan amount to $5.5 billion from $4.7 billion under the loan programme that began in 2023 under the AL regime in 2023 to meet the balance of payment shortage.   The progarmme period has also been extended by six months to January 27, 2027 from July 2026, following requests from Dhaka. The interim government has already reduced the balance of payment pressure. Driven by higher remittance and export earnings, the country’s gross foreign exchange reserves increased to $32 billion on October 16, the highest in 31 months. The latest IMF mission is also linked to the Article IV report, an annual consultations with its member countries on overall economy, on Bangladesh. Read more: Jamaat-e-Islami holds meeting with IMF on economy and tax system

Finance Adviser Dr Salehuddin Ahmed on Sunday said the International Monetary Fund (IMF) is continuing its review of Bangladesh’s progress under the ongoing loan programme and a final decision regarding the next installment is expected only after the formation of the next political government. “The IMF has acknowledged that the government has been working to address macroeconomic challenges and implement reforms. They have some recommendations, particularly on revenue generation. We agree that tax revenue remains low, and there are structural reasons for this,” Dr Ahmed said. Talking to reporters at Bangladesh Secretariat after holding a series of meetings, the adviser said the government has already undertaken necessary reforms and is consolidating the progress before the upcoming general election, scheduled for February 2026. He said tax compliance among citizens remains weak, while the temporary suspension of the new National Board of Revenue (NBR) for two months also had an impact on revenue collection. “We are working to resolve these issues.” According to the adviser, the IMF has also emphasised increasing expenditure in the social sectors, especially health, education and social protection. “On food security, we are performing reasonably well.” BGMEA briefs IMF on RMG risks, urges govt to prioritize FTAs to counter LDC graduation challenge Responding to a question on whether the government expects to receive the next IMF tranche during the tenure of the interim administration, Dr Ahmed said the focus now is to maintain stability and hand over a well-structured economic reform framework to the elected government. “We will consolidate the work done so far. Of course, we cannot complete everything. Major reforms such as tax restructuring, public sector pay commission review, and strengthening the banking sector will continue. These will be carried forward by the next government,” he said. The adviser said Bangladesh has already submitted relevant reports to the IMF, and a review mission will visit the country again early next year. “The IMF will review again around the election period and then decide on disbursement. We have no objection to this. A stable political government is needed for sustained reform.” Asked about recent remarks by the Bangladesh Bank Governor on certain policy proposals, Dr Ahmed declined to comment but said any major decision would be taken collectively by the government. “This is an internal matter of the Bangladesh government. It will go to the advisory council for consideration,” he said. In response to a question, the adviser said he is scheduled to hold final discussions with the IMF on November 15.  “I have already had a virtual meeting with them. They said they are very happy with the overall economic direction. They acknowledged the efforts we have made and are making.” IMF to probe ‘NPL data concealment’ in Bangladesh’s banking sector The adviser also informed that an independent committee comprising economists has been formed to recommend reforms in the tax system. He identified the banking sector as the most critical challenge in the economy. “Some reforms have already begun, and the rest will proceed gradually. These issues will also be handed over to the next government.” Responding to whether the sixth installment of the IMF loan will be released during the interim government’s tenure, Dr Salehuddin said the IMF will review progress again after the national election expected in February.   “They want to see how much the political government continues the reforms. That is important for them. So, after their review early next year, they will make a decision,” he said. The $4.7 billion IMF loan programme, approved in January 2023, aims to support Bangladesh’s economic stability, strengthen fiscal reforms, and enhance resilience amid global economic pressures. Several tranches have already been disbursed, while further installments remain tied to policy performance benchmarks and structural reforms. The IMF will delay disbursing the sixth tranche until the next national election and the new elected government assumes office. The interim government that assumed power on August 8, 2024 three days after the Awami League regime was ousted amid a mass uprising has announced that the next general election would be held in February. Finance ministry officials said that they were expecting the releases of the sixth and the seventh tranches in June 2026.  IMF-WB proposes unified debt management office in Dhaka to strengthen public debt governance On June 23, the IMF approved the release of the fourth and fifth tranches amounting to $1.3 billion, taking the overall amount of disbursement to $3.6 billion. In June 2025, the IMF also increased the overall loan amount to $5.5 billion from $4.7 billion under the loan programme that began in 2023 under the AL regime in 2023 to meet the balance of payment shortage.  The progarmme period has also been extended by six months to January 27, 2027 from July 2026, following requests from Dhaka. The interim government has already reduced the balance of payment pressure. Driven by higher remittance and export earnings, the country’s gross foreign exchange reserves increased to $32 billion on October 16, the highest in 31 months. The latest IMF mission is also linked to the Article IV report, an annual consultation with its member countries on overall economy, on Bangladesh.    

The National Board of Revenue (NBR) has recorded the highest-ever revenue collection in the first quarter of any fiscal year, collecting Tk 90,825 crore during July–September of FY2025–26. According to official data, the amount marks a significant 20.21 percent growth compared to the same period of FY2024–25, when the NBR collected Tk 75,554.78 crore. In the first quarter of FY2023–24, the revenue stood at Tk 76,068.43 crore, while it was Tk 68,635 crore in FY2022–23. The data shows that the NBR collected Tk 15,270 crore more in the first quarter of FY2025–26 compared to the corresponding period of the previous fiscal year. Among the three major segments, the value-added tax (VAT) from the domestic sector contributed the highest — Tk 34,819 crore — showing a robust 29.74 percent year-on-year growth. In comparison, collections from the same period stood at Tk 26,838.49 crore in FY2024–25, Tk 28,445.41 crore in FY2023–24, and Tk 24,546.65 crore in FY2022–23. NBR launches major customs and VAT overhaul to boost revenue collection Income tax and travel tax collections reached Tk 28,478 crore during the July–September quarter, up from Tk 24,080.82 crore a year earlier — marking an 18.26 percent growth. The figure was Tk 23,751.31 crore in FY2023–24 and Tk 21,016.20 crore in FY2022–23. Revenue from import and export activities totalled Tk 27,528 crore in the first quarter of the current fiscal year, up 11.74 percent from Tk 24,625.47 crore collected during the same period of FY2024–25. The NBR noted that revenue collections across all three key segments — domestic VAT, income and travel tax, and customs — hit record highs in the first quarter of FY2025–26. It attributed the strong performance to expanded tax coverage, improved compliance, anti-evasion measures and the recovery of previously evaded revenue. NBR sets up e-Return Help Desks in all tax zones The board appreciated its 'dedicated and hard-working officials' for their efforts in driving continued growth in national revenue mobilisation.

The National Board of Revenue (NBR) has undertaken a major administrative reform and expansion of its Customs and VAT wings in a bid to widen the tax net and strengthen revenue collection. According to an official order issued on Tuesday by the Internal Resources Division (IRD), a total of 12 new commissionerates, customs houses and specialised units have been established under the NBR. Under the new structure, 373 cadre posts and 3,224 non-cadre posts — totalling 3,597 new positions — have been created to enhance institutional capacity across the Customs and VAT wings. The expansion aims to promote self-reliance in the national economy through increased revenue mobilisation, improve service delivery to ensure a business-friendly environment, and make the indirect tax system more dynamic and effective, the IRD said in a statement. NBR sets up e-Return Help Desks in all tax zones Following proposals from the NBR, the reform initiative received administrative approval from the Ministry of Public Administration, the Finance Division and the Cabinet Division before the IRD issued the order. As per the order, the expansion will be implemented in three phases, establishing five new VAT commissionerates, four new customs houses and three specialised offices. In addition to the creation of new units, the order also provides for the expansion of existing commissionerates and customs houses, as well as the decentralisation of customs and VAT intelligence operations. Customs activities at Dhaka airport’s third terminal will also be expanded under the reform plan. The NBR expects that the restructuring will enhance the institutional capacity of indirect tax collection, increase the tax-to-GDP ratio through improved revenue mobilisation, stimulate investment by facilitating trade, and accelerate the country’s overall economic growth.

The National Board of Revenue (NBR) has issued directives to strengthen the activities of its field-level Intelligence and Investigation Cells (IICs) in a bid to expedite the recovery of evaded taxes and boost overall revenue collection. According to an official circular from the Office of the NBR Member (Tax Audit, Intelligence and Investigation), each tax zone has been instructed to form dedicated intelligence and investigation teams. The directive outlines the structure, operational procedures, reporting framework and approval process for initiating recovery actions based on the teams’ findings. The IIC teams will launch investigations based on various sources of intelligence, including complaints of tax evasion, information published in print and electronic media, inconsistencies in income tax records or registers, evidence of tampering or erasure, unusual declarations of tax-free income, or discrepancies between declared taxable income and assets. If concrete evidence of tax evasion is identified during the investigation, the team will submit a detailed report to the respective Intelligence and Investigation Committee for approval to initiate recovery proceedings. NBR eyes bonded facilities for toy industry Upon verification of the findings, the committee will authorise legal measures to recover the evaded revenue. The NBR has also instructed each tax commissionerate to submit monthly reports detailing the additional tax claims and collections generated from intelligence and investigation activities. The reports must reach the NBR by the 10th of each month. The revenue authority, in a press release, expressed optimism that strengthening the operations of the Intelligence and Investigation Cells will not only facilitate the recovery of evaded taxes but also discourage tax evasion and foster a culture of compliance and transparency within the country’s tax system. Meanwhile, the revenue collection of the National Board of Revenue (NBR) is still behind the target for August, the second month of the current fiscal, maintaining its trend like the first month of the fiscal. In August, the overall revenue collection for the NBR suffered some Tk 3,715.3 crore, according to the data released by the NBR. It said that the overall collection target for the revenue collecting authority was Tk 30,889.30 crore, while the collection was Tk 27,174 crore. The revenue collection in the same month of the previous 2024-2025 fiscal year was Tk 23,089.37 crore. In August-2025, Tk 4084.5 crore more revenue was collected compared to the previous August-2024 month, the growth rate achieved was 18%. The revenue from the Custom Wing witnessed a negative growth, showing the sluggish export import activities of the country. NBR revenue collection falls short of August target The target for this section was Tk 10,061.35 crore while the collection was Tk 7647 crore. The collection in the same month last year was 8007.49 crore. That means it suffered a 4.50 percent downtrend compared to the previous month. The collection from Value Added Tax (VAT) was Tk 11,085 against the target of Tk 10,660.20 crore. The collection of the same month in the previous fiscal was Tk 8,282.15 core, which means a 33.83 percent jump of collection in the second month of the fiscal. For the income tax wing, the collection was Tk 8442 crore against the target of Tk 10,167.75 crore while it was Tk 6798.73 crore for August 2024 means a 24.17 percent increase. The total revenue collection in these two months of July-August of 2025 was Tk 54,423.00 crore while total revenue collection in the same period of 2024 was Tk 45,005.16 crore. The revenue collection in these two months of July-August of this year has grown by 21%.

The National Board of Revenue (NBR) has said it is working to simplify policies and expand bonded facilities for promising sectors like toy manufacturing, as the Dhaka Chamber of Commerce and Industry (DCCI) seeks a clear policy framework to boost exports in the post-LDC era. Speaking at a focus group discussion (FGD) on ‘Diversifying the Export Basket: Innovation, Export Potential and Market Expansion of the Toy Manufacturing Industry’ at the DCCI auditoriums on Tuesday, NBR Member (Customs: Policy & ICT) Muhammad Mubinul Kabir said the revenue authority imposes tariffs in line with the 2023 Tariff Policy and aligns its strategies with donor recommendations to strengthen efficiency and overall capacity. He said the government may consider providing policy support for toy manufacturing in the upcoming budget although there is little scope for mid-year policy changes. “The RMG sector has enjoyed policy support for the last 40 years, but now it is time to rethink its capacity. Toy entrepreneurs should also focus on enhancing their own skills, innovation, and product development rather than relying solely on government incentives,” he added. British High Commission’s Deputy Development Director Martin Dawson said Bangladeshi toys have strong export potential and the UK government is keen to cooperate. He expressed the hope that if policy barriers are removed, exports to the UK could multiply, particularly as the UK has recently simplified Rules of Origin requirements. Presenting the keynote paper, Shamim Ahmed, President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), said the domestic toy market is worth nearly Tk 400 billion, with around 250 of the country’s 5,000 plastic enterprises engaged in toy manufacturing, employing about 1.5 million people. Exports from this sector reached USD 276 million in FY 2023-24, up from just USD 15.23 million in FY 2016–17. Adviser Salehuddin defends central bank’s $2 bln dollar market mop-up  Despite this growth, toy exports stood at only USD 77 million in FY 2022–23 against a global market of over USD 100 billion. Shamim highlighted lack of product quality assurance, poor infrastructure, and lagging innovation as major challenges. He stressed cluster development, joint venture investment, infrastructural expansion, toy-specific policy formulation, and reduction of supplementary duties on machinery. Industry representatives including Md Juhirul Islam Shimul (Redmin Industries Ltd), Musa Bin Tareque (Hashy Tiger Company Ltd), Dr Abdullah Al Mamun (Department of Environment), Md Anisur Rahman (Premiaflex Plastics Ltd), Yasir Obaid (Cupcake Exports Ltd), and Belal Ahmed (Golden Son Ltd) also shared recommendations ranging from tariff cuts and bank interest reduction to strengthening supply chains, ensuring IPR and involving academia in research. Officials from the Ministry of Commerce, Ministry of Industries, and Bangladesh Trade and Tariff Commission (BTTC) echoed the need for better intellectual property protection and patent practices to sustain in the post-LDC era. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md. Salem Sulaiman, members of the Board of Directors and industry representatives were present at the event.

The National Board of Revenue (NBR) has stressed the need for sustained reforms and strengthened institutional capacity to boost Bangladesh’s domestic revenue mobilisation (DRM) even as the country has achieved notable progress through comprehensive tax reforms. These observations came in the Medium- and Long-Term Revenue Strategy (MLTRS) FY2025-26 to FY2034-35, unveiled by the NBR recently to guide fiscal reforms over the next decade. The strategy noted that while Bangladesh has expanded its revenue base significantly further efforts are essential to support the nation’s goal of achieving upper middle-income status by 2031. The reforms have covered the entire tax architecture, including customs, VAT, and income tax and continuous efforts are needed to enhance regulatory, institutional, human, and voluntary compliance capacities, the strategy said. 75% of CFOs believe AI agents will boost company revenue: Salesforce study In the income tax wing, the Government introduced the Income Tax Act 2023, replacing the decades-old ordinance of 1984. The new Act incorporates global best practices to simplify return submission and curb evasion. NBR has also expanded its operational footprint, adding 10 new tax zones, three specialised units — the Income Tax Intelligence and Investigation Unit, the e-Tax Management Unit, and the Withholding Tax Management Unit — along with 220 new circles and 40 range offices to bring more taxpayers under the net and strengthen compliance. Shipping Ministry generates significant revenue in FY25, up almost 10% Despite these reforms, income tax remains the weakest link in Bangladesh’s tax system, contributing only 2.58 percent of GDP in FY2021-22, according to Finance Division data. Although the per capita income has more than doubled in the last decade income tax collection has grown only marginally. To close the gap, NBR is accelerating automation, including an online return filing system, e-TDS filing for corporates, online tax payments through bank cards and mobile banking, and verification of audit reports through the Document Verification System (DVS). Tax records, arrears, litigation cases, and registers are now managed digitally via the Office Management System (OMS) while real-time tax collection can be tracked through the Automated Challan System (ACS). On the customs side, the Customs Act 2023 has replaced the outdated 1969 legislation, introducing a modern legal framework to streamline trade, strengthen compliance, and align with international customs standards. Central to this effort is the National Single Window (NSW), scheduled for completion by 2026, which will integrate multiple government agencies on a single platform for trade-related documentation. The initiative is expected to improve clearance efficiency, reduce business costs, and enhance transparency. Since 2019, NBR has also automated bonded warehouse management to address revenue leakages in export-oriented industries. Other automation tools include e-Advance Ruling, e-Appeal, e-Auction, and a Detained Goods Management System. To manage rising trade volumes, NBR has set up a Customs Risk Management Commissionerate and is developing an Automated Risk Management System (ARMS) to better monitor high-risk consignments, including e-commerce shipments. The Customs Strategic Plan (2024–2028) includes structured career development for officials, domain-specific training on trade policy, data analytics, and risk management, and investment in infrastructure such as a modern Customs, Excise and VAT Training Academy with an e-learning platform. The VAT wing, meanwhile, is tackling long-standing challenges linked to multiple rates, cascading effects, and rebate complexities that increase effective VAT burdens. To improve accountability, NBR has been conducting VAT expenditure analysis since 2023, with annual publications planned. NBR is also reviewing VAT exemptions and Statutory Regulatory Orders (SROs) to expand the base. The Integrated VAT Administration System (IVAS), operational since 2015, is being upgraded and linked with company accounting systems to curb evasion by large firms. The introduction of Electronic Fiscal Devices (EFDs) and the Sales Data Centre (SDC) in 2020 has expanded transparency in the retail sector. In addition, NBR is pushing e-invoicing in select industries, improving online return systems, and hosting awareness programmes such as VAT Day and VAT Week to promote voluntary compliance. The NBR strategy also stresses better fiscal management of tax expenditures with annual reports estimating forgone revenues since FY2020-21. By institutionalising expenditure tracking, the government aims to improve decision-making and reduce leakages. The revenue authority said its strategy not only aims to raise collections but also to foster transparency, strengthen taxpayer services and build a more robust institutional framework to meet Bangladesh’s development goals.    

The National Board of Revenue (NBR) has taken a move to introduce duty-free raw material import system for the exporters who do not have any bond license. “We have already started the process,” NBR chairman Md Abdur Rahman Khan told a meeting on Wednesday. The meeting titled 'Meet the Business' was arranged for the first time to get feedback from the business people regarding their problems in the field level. From now on, this meeting will be held every second Wednesday a month. The NBR chairman said that the exporters who do not have the bond license can import their raw materials without giving any duty. The exporters will have to get the guarantee from any bank saying that the imported raw materials will be exported. “It will not be sold in the local market or will not be used in any other purpose,” he said. The revenue boss said that the policy has been already sent to the legislative division for final approval. “Hopefully it will get final nod in the next week,” he said. The bond system allows export-oriented enterprises to import raw materials and accessories duty-free. These raw materials are stored in bonded warehouses and used for manufacturing products meant for export. If a bonded company sells these imported goods in the domestic market instead of exporting them, they are required to pay the substantial import duties. The NBR chairman also said that his organisation will start work for bond audit within a short time. But he said that if the bond system can be made automated then it would be easy to go forbrisk based audit. NBR seizes Hasina's locker at Pubali Bank “The main aim behind these moves is to ensure that the complaint taxpayers are not getting pain,” he said. Abdur Rahman Khan said that the tax payment for the corporate taxpayers will go online from the next year and the NBR is working effortlessly for this purpose. Criticising heavy tax exemption culture in the country, he said that there will be no tax exemption in the coming days unless it is essential for policy level. “The power of the NBR to give tax exemption has been removed, now only the parliament can approve any tax exemption,” he said. He also put emphasis on coming out from the tax exemption culture gradually. The NBR chairman said that if the taxpayers see that their taxes are using in country’s welfare on a priority basis programmes than they will be encouraged to pay their taxes properly. He also emphasised on punishing the NBR officials for their unnecessary harassment to the taxpayers. Later, The NBR chairman gave a patient hearing to the businesses and reply their various types of querries.

The Central Intelligence Cell (CIC) of the National Board of Revenue (NBR) on Wednesday seized a locker belonging to former Prime Minister Sheikh Hasina. A CIC team seized the locker at the Motijheel branch of Pubali Bank housed in Sena Kalyan Bhaban in the morning, a senior CIC official said. The official said that the locker (No. 128) was traced in Sheikh Hasina’s name with one of the two keys still in her possession.

Almost one lakh taxpayers have submitted their income tax returns online within the first 10 days of the launch of the e-return system for the current tax year (2025-26), the National Board of Revenue (NBR) said on Thursday. Following the inauguration of the e-return submission process by Finance Adviser Dr Salehuddin Ahmed on August 4, a total of 96,945 taxpayers filed their returns online till August 13. According to the NBR, only 20,523 taxpayers submitted e-returns during the first 10 days of last year’s filing season, which began on September 9, 2024. This year’s daily average submission rate is nearly five times higher than that of last year. On August 3, the NBR issued a special order making online filing mandatory for all individual taxpayers across the country, except for senior citizens aged 65 years or above, physically incapable persons or those with special needs, Bangladeshi taxpayers residing abroad and legal representatives of deceased taxpayers. Later, on August 11, the order was amended to exempt foreign nationals working in Bangladesh from the mandatory e-return requirement. Taxpayers facing registration-related issues may submit paper returns by October 31, subject to approval from the concerned Additional or Joint Commissioner of Taxes, upon application with valid justification. The NBR said taxpayers can pay their taxes from home via bank transfers, debit or credit cards and mobile financial services such as bKash, Rocket, or Nagad, and can instantly print their e-return acknowledgement slip and income tax certificate. ‘Zero tax returns’ illegal, may invite imprisonment: NBR To assist taxpayers, a dedicated call centre has been set up at 09643 71 71 71 for immediate solutions to e-return queries. Written complaints or queries can also be submitted through the eTax Service option on the NBR portal (www.etaxnbr.gov.bd). The NBR urged all eligible taxpayers to file their returns on time through its portal, ensuring accurate disclosure of income, expenditure, assets and liabilities.