The National Board of Revenue (NBR) has initiated a plan to digitize its tax audit selection process, replacing the long-standing manual method, to eliminate human interference and restore taxpayer confidence. The move comes in response to ongoing complaints from taxpayers who claim the existing manual system exposes them to unnecessary harassment. NBR Chairman Md Abdur Rahman Khan confirmed the development: “We have begun working on digitizing the selection process to ensure it is objective and transparent.” He acknowledged NBR's "image crisis" concerning how tax audit files are selected. "Taxpayers often complain that the manual selection process is subjective, and this has damaged trust in the system," he said. "Our goal is to eliminate any confusion by fully automating the audit selection process, free from human intervention." In line with the NBR's ongoing transition to a digital system, the authority has temporarily suspended the selection of new tax files for audits. Following the formation of the interim government, NBR's member of taxes (tax audit, intelligence and investigation), Md Alamgir Hossain, issued a directive instructing all field-level tax offices to halt new audit selections until further notice. The decision aims to address the complexities faced by both taxpayers and tax officials under the existing manual process. NBR to focus on out-of-court settlement of tax disputes to boost revenue Bangladesh continues to grapple with one of the lowest tax-to-GDP ratios in the South Asian region—just 7.3%. In contrast, neighboring countries like India (12%), Nepal (17.5%), and Bhutan (12.3%) have significantly higher ratios. Moreover, only 5.2% of Bangladesh's population are registered as taxpayers, a stark contrast to India’s 23.08%. Currently, 67% of the government’s revenue comes from indirect taxes. The NBR has acknowledged the need to shift this dependency toward direct taxes. The NBR chairman has said they are working to broaden the tax net in a way that is more convenient for taxpayers, encouraging compliance while reducing the burden of indirect taxation. The implementation of the Income Tax Act 2023 has introduced new audit guidelines that have raised concerns about potential increased bureaucracy and costs for taxpayers. Under the guidelines, taxpayers may face multiple stages of interrogation, which some fear could open the door to underhand dealings. To combat these concerns, the NBR has been developing specialized software, known as the "Risk Management Engine," which is designed to bring greater transparency to the tax audit process. The software will link with other government agencies to gather data and select tax files for audit based on risk factors, helping to detect tax evasion more effectively. Read more: How to file your Tax Returns in Bangladesh

Photos of former National Board of Revenue (NBR) official Matiur Rahman, recently at the center of corruption allegations, with Bangladesh Bank Governor Abdur Rouf Talukder have gone viral on social media, sparking widespread discussion. One viral photo shows the two men in Ihram during the Hajj pilgrimage, while another captures Matiur greeting Rouf with a bouquet of flowers at the governor's office in the central bank. Read more: Matiur removed from NBR post after goat purchase scandal Matiur Rahman was appointed as a director of Sonali Bank on February 1, 2022. At that time, Abdur Rouf Talukder was serving as the finance secretary. Some media outlets have questioned the Bangladesh Bank governor through the central bank’s spokesperson, Mezbaul Haque. The inquiry focused on the governor’s comments regarding Matiur's appointment as a director of Sonali Bank during his tenure as finance secretary and the allegations of anonymous stock market investments through Matiur. Responding to the media, Bangladesh Bank spokesperson Mezbaul Haque conveyed the governor's statement, asserting that the allegations are not true. Read more: Ex-NBR member Matiur removed from Sonali Bank board

The National Board of Revenue (NBR) has decided to allow black money whitening by paying just 15 percent tax for individuals. In the next budget for the fiscal year 2024-25, the NBR brings back the opportunity of individual black money whitening closing such opportunities as investing in Economic Zones or high-tech parks. In the last five years, the opportunity of whitening black money was available in EZs, but not a single penny of black money was being invested. Under the new rules, black money can be turned into white without question by paying only 15 percent tax, said sources of the budget section of NBR. According to the sources, to bring black money into the mainstream of the economy, the 2019-20 budget allowed unquestioned investment in economic zones or hi-tech parks. Then finance minister AHM Mustafa Kamal said in the budget speech that the income arising from the production of goods or services in economic zones and hi-tech parks has been given tax exemption at various rates for 10 years. Junior finance minister gets coy over keeping provision for whitening black money in next budget A tax of 10 percent on the money invested from undisclosed income in setting up industries in economic zones and hi-tech parks to increase investment and create employment. Such investment would not raise any question from the Income Tax Department about the source of that invested money. After several years economic zones or hi-tech parks got the opportunity to invest black money. But no one took this opportunity in 5 years. This facility is scheduled to expire on June 30 of the current fiscal year 2023-24. Therefore, black money investment in new economic zones or hi-tech parks is not allowed as part of the advice of the International Monetary Fund (IMF). Instead, an opportunity to legitimize black money or undeclared income is being offered under a general amnesty (tax amnesty). Of course, for this, you will have to pay more income tax than before. HC summons BFIU chief over 'incomplete report' on black money in Swiss banks Earlier black money could be whitened by a 10 percent tax, in the future, it will be 15 percent. If the money is legalized in this way, no other organization of the government can question this, said an official of NBR.

In a step towards global trade compliance, the National Board of Revenue (NBR) has undertaken a comprehensive review of Bangladesh's tariff regime, identifying 60 tariff lines where current customs duties and associated charges surpass the bound rates established in the World Trade Organization (WTO) agreements. As part of its initial measures, customs duties on 6 items have been reduced, signaling Bangladesh's commitment to aligning its trade practices with international standards. The initiative, detailed in an official document, sets forth a plan to gradually adjust these rates to fall within the WTO-agreed bound tariffs by 2026. Bound tariffs represent the maximum most-favored nation (MFN) tariff rate a country commits to at the WTO, serving as a ceiling that applied tariffs cannot exceed. This regulatory framework ensures that trade policies remain predictable and stable, providing security for traders and investors. NBR’s three-pronged strategy to boost revenue collection Countries typically negotiate bound tariffs during their accession to the WTO or through subsequent trade negotiations, setting these rates higher than their applied tariffs to retain policy flexibility. However, exceeding these bound rates without proper adjustments can lead to international disputes and demands for compensation, emphasizing the importance of adherence. The recalibration effort by Bangladesh reflects a broader trend among WTO members, where developed, developing, and transitioning economies have significantly increased the proportion of imports with bound tariff rates, enhancing global market stability. Additionally, the government has resolved to eliminate the minimum import price requirement, already removing it from 55 items with a strategic plan to phase it out entirely from the remaining 130 products by 2026. This move aims to simplify the import process and foster a more competitive market environment. The document outlines a cautious approach to tariff reduction, ensuring that local industries are not adversely affected and that revenue mobilization remains robust. The NBR's strategy involves a careful balancing act, prioritizing the protection of domestic sectors while advancing the country's export competitiveness. NBR collects nearly Tk 2 lakh crore in 7 months, growth over 15% This progressive adjustment of customs duties and the abolition of the minimum import price underscore Bangladesh's efforts to integrate more seamlessly into the global trading system, promoting economic growth and development in alignment with WTO commitments.

Aiming to significantly boost revenue collection from domestic sources, the National Board of Revenue (NBR) is adopting a three-pronged approach. These are: digital transformation, expansion of tax net, and enhancing administrative capacity. The core idea is to make tax payments easy and transparent to improve taxpayer services which in turn will help NBR to collect more revenue, according to an official document. According to the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division of Finance Ministry, the government has taken some Major reform measures to materialise the move. The VAT & Supplementary Duty Act 2012 has been implemented in July 2019. With the implementation of the new act, the collection of VAT and supplementary duty is expected to receive a significant boost in the medium term. After the initial hiccup and the shortfall due to the outbreak of COVID-19, revenue collection accelerated in FY22. The government has enacted the new Customs Act, which replaced the Customs Act 1969. International best practices in customs, including that of the World Customs Organization (WCO), the revised KYOTO Convention and the WTO Trade Facilitation Agreement have been incorporated here. NBR will go after house and flat owners for not filing returns; NBR Chairman The law aims to harmonise and simplify customs processes to facilitate the collection of custom duties. The new Income Tax Act is also expected to create an enabling environment for taxpayers, streamline income tax assessment and collection, and facilitate domestic and foreign investment. To implement the new VAT law, the NBR undertook the ‘VAT Online Project (VoP)’ which was in operation since 2013 and concluded in June 2021. Under the VOP, the official document said that the three important automation measures have been completed. First, the Online VAT Registration began in March 2017. Again, the central registration system has been in force since July 2019. The NBR has introduced online return submission in July 2019. The digital filing system has been introduced in the form of online submission of VAT returns. The NBR has rolled out the electronic payment (e-payment) of customs duties in 2017, income tax in 2012 and VAT in 2020. Income tax can be paid through MFS (mobile financial services) as well. To facilitate real-time deposit of government money to the national exchequer, the government has launched the Automated Invoice Portal. This Automated Challan (also known as A-Challan) will act as the receipt window of the government. The payment of income tax has already been brought under the A-Challan system on a pilot basis. The NBR now plans to expand its use for payment of VAT and customs duties. The A-Challan will ensure the timely deposit of money including the prevention of fake return submission and revenue evasion.Moreover, the discrepancy between the amount of revenue collected by the NBR and the accounts given by the Accounting Offices will be eliminated. The Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) said that individual taxpayers can now submit their tax returns online. NBR extends deadline for filing companies’ tax returns to April 30 The NBR has successfully launched eTDS Environment for easy and hassle-free processing of income tax at the source. With the introduction of this system, taxpayers’ time, cost and visits have been reduced to almost zero. Taxpayers can now submit fourteen reports in the eTDS environment. To stop evasion in VAT and enhance VAT collection, the government has introduced Electronic Fiscal Devices (EFD) with a sales data controller mechanism. The government has already installed 9270 EFD/SDC (Sales Data Controller) machines. NBR has selected 24 sectors, including residential hotels, bakeries and fast foods, decorators and caterers, sweet shops etc. for this purpose. To broaden the coverage, the government has decided to outsource the installation of EFD/ SDC machines with a target of 60,000 EFD/ SDC in the first phase and 3,00,000 in five years, if the first phase brings good results. Besides, to prevent tax evasion and to bring transparency in VAT record keeping, the government has made the use of NBR-prescribed VAT software mandatory in VAT-registered industries with annual turnovers of Tk 5 crore or above. The NBR has made provisions to enable internet-based companies, such as Google, Facebook, Microsoft etc. to pay their VAT on online sales. This allows these companies to pay their VAT through their authorised VAT agents without opening their office in Bangladesh. The NBR plans to operationalise the risk management system to ensure that no more than 10 percent of the import consignments are subject to physical examination. To that end, the NBR has established a Central Risk Management Unit/Commissionerate for Customs. To streamline the bonded warehousing system, reduce its misuse and make it transparent, the government has taken a project that aims to automate the bond management system by June 2023. Meanwhile, the licensing module has started operation and other modules will become operational soon. Bangladesh Customs will soon be conducting a Time Release Study in the major custom houses to take stock of the actual time taken in the release of imported consignments. The objective of the TRS will be to identify bottlenecks in customs clearance and to take measures to reduce clearance time. The NBR strives to expand the number of taxpayers and has made the return submission mandatory for all TIN-holders with a few exceptions. Other reform efforts by the NBR included – i) implementation and activation of Online National Single Window, Post Clearance Audit, Advance Ruling, Authorised Economic Operator, and thereby increasing dynamism in international trade; ii) full implementation of online income tax return submission under SGMP project; iii) implementation of “Individual Source Tax Deduction Monitoring Zone” to strengthen income tax deduction monitoring; iv) expansion of the e-Payment system in income tax; v) activation of transfer pricing and anti-money laundering activities; and vi) strengthening ICT infrastructure construction and automation activities. Administrative expansion of the income tax department is underway, the Medium Term Macroeconomic Policy Statement added. Introduction of the Document Verification System (DVS) has brought financial discipline and positively contributed to boosting tax collection both in income tax and VAT by increasing transparency. NBR collects nearly Tk 2 lakh crore in 7 months, growth over 15%

The Bangladesh Economic Association (BEA) has proposed a 70 percent tax on all types of cigarettes and tobacco in the next budget. The association reckons that doing so will reduce smoking by about 66 percent, alongside generating revenue of Tk1,700 crore for state coffers. The proposal was submitted to the National Board of Revenue (NBR) during the pre-budget discussion held at the NBR Building on Sunday (February 18). The General Secretary of the BEA Professor Dr. Md. Aynul Islam presented the budget proposal. Vice President of the association Professor Hannana Begum was present. Read more: Govt cut VAT, duty on import of 4 essential items ahead of Ramadan According to the BEA's proposal, imposing a single supplementary duty of 70 percent on all types of cigarettes would increase the price of cigarettes by an average of 130 percent. Smoking will be reduced by 66 percent. About 70 lakh smokers will quit smoking, and about 71 lakh young people will stop habituating to smoking. Also, the additional tax revenue of the government will be earned at least Tk1700 crores, the proposal stated. Similarly, the BEA demanded to impose a tax of 70 percent on all types of tobacco products including smokeless tobacco such as jorda, gul, sadapata, etc. On the other hand, in the case of bidi, if the tax is imposed at the rate of Tk 4.90 on the retail price of every 25 shalak (piece) packet, the government will be able to collect additional revenue of Tk 800 crore. Read more: ICMAB delegation takes part in pre-budget discussion with NBR The BEA thinks with such a tax increase; revenue earning will be raised and it would help to revive the economy from the ongoing economic crisis. The BEA has a total of 27 new sources of revenue income. At this time, Prof Aynul said, as a method of gathering resources for the upcoming budget, no pressure can be applied on the general population, such as the poor, lower class, lower middle class, and middle class. Due to various reasons, this class of people is now in a severe economic crisis. It would be unfair at this moment to rely completely on them as in the past for tax collection. In that case, the imposition of additional income tax on these three groups – the super-rich, the rich, and the upper-middle class – can be considered, said Prof Aynul. Read more: PROGGA, ATMA for imposing specific taxes on tobacco products

The government has reduced VAT and duty on import of  rice, edible oil, sugar, and dates ahead of holy month of Ramadan. The National Board of Revenue (NBR) issued four gazette notifications reducing the customs duties on these essential items from a minimum of 5 percent to a maximum of 47 percent. According to the notifications, rice import duty and tax have been reduced by 47.25 percent. The duty has been reduced from 62.50 percent to 15.25 percent. Out of this, supplementary duty has been cut by 20 percent. Bangladesh seeks IFAD support to boost wheat and edible oil production This tax reduction will be applicablein the import of boiled and non-boiled rice. However, prior to importing rice at subsidized rates, written approval must be taken from an official of minimum joint secretary rank of the Ministry of Food for each shipment. The tax reduction facility will be valid till May 15, 2024. On the other hand, the Value Added Tax on refined and crude (non-refined) soybean and palm oil has been reduced to 10 percent from 15 percent, which will be in force till April 15. Govt to import 12,500 MT of sugar from US For sugar import, the fixed duty has been reduced from Tk 1,500 to Tk 1,000 per metric ton. This facility will be valid till March 31 as per NBR notification. Besides, the import duty on date has been reduced from 58 percent to 43 percent.. It will remain in force till March 30. One crore TCB card holder families to get 5 kg rice at Tk 30 from July In the cabinet meeting held at the Prime Minister's office on January 29, Prime Minister Sheikh Hasina ordered reduction of duty on edible oil, sugar, dates, and rice on the occasion of Ramadan. On January 22, the Ministry of Commerce wrote to National Board of Revenue (NBR) to exempt tax on rice, edible oil, sugar, and dates.

The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), the apex organization of businessmen, has requested the National Board of Revenue (NBR) to extend the deadline for submission of income tax returns. The federation in a letter to the NBR Chairman said that due to the late publication of income tax circulars in line with the new Income Tax Act 2023, the businessmen are not prepared to submit returns. Read: FBCCI urges political parties to avoid violence for economy's sake  So, the deadline for filing returns need be extended until December 31 this year. The letter said due to the current political situation and upcoming parliamentary elections, many taxpayers may be able to file income tax returns by November 30. Some other business chambers have also requested the NBR to extend the tax return submission deadline. Read: FBCCI emphasises signing FTA between Bangladesh and Saudi Arabia  The Dhaka Taxes Bar Association has demanded an extension of the return submission deadline by another two months.

The Appellate Division of the Supreme Court on Tuesday ordered Grameenphone , Robi and Banglalink to pay dues of Tk 2500 crore as their spectrum acquisition fee including VAT to the government, National Board of Revenue and Bangladesh Telecommunication and Regulatory Commission (BTRC). A five-member bench of the Appellate Division led by Chief Justice Hasan Foez Siddique passed the order after rejecting their petition challenging the High Court order that had rejected their writ petition against imposing VAT (value added tax) on spectrum acquisition fee. Read more: Mobile operators must increase spectrum by December to provide better services to customers Of the total amount, Grameenphone has been asked to pay Tk 1,400 crore, Robi Tk 500 crore and Banglalink Tk 650 crore. Attorney General AM Amin Uddin represented the state while Barrister Reza-e-Rakib and Barrister Mostafizur Rahman Khan stood for BTRC and mobile companies, respectively. Talking to reporters, Attorney General Amin said the government has allocated spectrum for the three mobile operators and fixed charges on it. VAT (value added tax) was also added later by the government on the spectrum fee. The three mobile operators filed a writ petition challenging the VAT which was rejected by the High Court. Read more: BTRC's spectrum auction: Govt earns revenue of Tk 10,645 crore Later, they filed petitions to the Appellate Division of the Supreme Court challenging the High court order which was also rejected, he said.  Now, NBR and BTRC will realise the money as dues including charges and VAT from the three mobile operators.

The National Board of Revenue (NBR) Wednesday honoured British American Tobacco (BAT) Bangladesh with the highest income taxpayer award in the others (company) category for 2021-22 fiscal. The company earned recognition for nine successive years. NBR conferred the award to BAT Bangladesh during an event in Dhaka; Finance Minister AHM Mustafa Kamal was the chief guest. Golam Mainuddin, chairman of BAT Bangladesh, received the award. Read more: BAT Bangladesh scoops up ACES Awards 2022 as 'top sustainability advocate' "We are humbled to receive the highest taxpayer award again, and as always, we feel proud to have contributed to the development of the country's economy as we sincerely believe the contribution to the national exchequer plays a crucial role in keeping the wheels of the economy running and an essential part of the country's growth journey," Mainuddin said. During the aforementioned fiscal year, BAT Bangladesh contributed approximately Tk28,280 crore to the government exchequer through VAT, supplementary duty, income tax, and other means, the multinational corporation said.