National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Monday said the government has pledged to phase out tax exemptions unless they are deemed absolutely necessary for the country. “We are going out from the tax exemption culture, we have scrapped existing tax exemptions, we will not give any tax exemption freshly, we have taken a vow, we have prepared a policy that we will not give any tax exemption,” he said. He made the remarks while addressing a pre-budget meeting at the NBR conference room at the Revenue Building. Representatives from financial institutions including banks, insurance firms, leasing and merchant banks, the Bangladesh Securities Exchange Commission (BSEC), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and DSE Brokers’ Association, attended the meeting to present their budget proposals. Expressing dissatisfaction over repeated requests for tax exemptions, the NBR chief questioned the rationale behind seeking such benefits before setting up any entity. “The first demand is tax holiday, why? This attitude has to be change, otherwise nothing will happen. Every place there is one demand- tax holiday, we do not want to live with this tax exemption culture anymore,” he said. Tracking system to alert NBR of inefficiencies, irregularities among staff He said past tax exemptions have not yielded expected results. “We did not get any positive result wherever we gave this tax exemption,” he added. He said the government in the past time nurtured the tax exemption culture and currently the country is paying badly for that. “For that purpose, the tax GDP ratio is not increasing in the country, one analysis said that Bangladesh is losing the same amount of money what it collects as revenue due to the tax exemption, we do not want to bear this bad name anymore,” he said. Talking about the present condition of the capital market of Bangladesh, Md Abdur Rahman Khan said that the basic problem is the lack of good governance in the capital market. He mentioned that no country in the world could develop industrialisation without developing the capital market. “Bangladesh will not be able to do that also, but we have ruined this place through various means, still we are depending on the banking sector for the source of money for industrialisation,” he said. He blamed the regulators for the lack of confidence of the investors in the capital market. NBR to digitise its activities under master plan He said that business people used to take loans from the banks for setting up their industries but they are not interested to go to the capital market to raise funds. “Why they are not coming to the capital market, I do not know that,” he added. He also said that taking money from the banking sector is loan while raising fund from the capital market is “absolutely free money”. “You do not need to return that money, if you take money from the bank you have to start repaying just after one year, but you will need five years to set up the industry, to reach the break-even point you will need 20 years, them how you will do your business taking money from banks,” he said.

National Board of Revenue (NBR) chairman Md Abdur Rahman Khan on Sunday categorically said his organisation will not hesitate to take any decision for the benefit for the country. “We are moving towards that direction,” he said, while holding pre-budget discussion with the Newspapers Owners’ Association of Bangladesh (NOAB) at NBR. He mentioned that there are three reasons behind the lower tax-GDP ratio in the country. These are: huge number of tax exemptions and its misuses, short tax net for income tax and Value Added Tax (VAT) and operational inefficiency. No VAT on purchases at supershops: NBR The revenue collecting chief said that due to the tax exemption culture, the NBR gives away the same amount of money that it collects by taxation. “We do not want to incur tax expenditure freshly,” he said. Abdur Rahman Khan said that if anyone makes small profit then that person  will give lower tax, that is the main ethos of the tax administration. He also said that due to the lack of automation, the NBR is still doing many of its duties manually. Single-window digital trade hits a milestone: NBR While placing a budget proposal for the NOAB, its president AK Azad demanded reducing import duty on newsprint to two percent, imposing VAT at 5 percent instead of 15 percent and write off corporate tax or make it nominal on newspaper industry considering it as a service industry. Prothom Alo Editor Matiur Rahman and Financial Express Editor Shamsul Huq Zahid also spoke.

The National Board of Revenue (NBR) has taken a move to expand the tax net, aiming to boost tax collection for increasing the tax-to-GDP ratio. As part of this initiative, the government has introduced new measures to bring more individuals and businesses under the tax umbrella, aiming to reduce dependency on indirect taxes and create a more equitable taxation system. The NBR has been working to increase the number of registered taxpayers by simplifying the tax filing process, enhancing digital infrastructure, and strengthening enforcement mechanisms. Currently, Bangladesh has around 9 million Taxpayer Identification Number (TIN) holders, but only about 3.5 million submit tax returns annually. The government aims to increase the number of active taxpayers to at least 5 million by the end of this fiscal year. To achieve this, NBR has made it mandatory for professionals such as doctors, engineers, lawyers, and other high-income groups to obtain TINs and file annual tax returns. NBR: International trade to go fully online under a single window next month Additionally, individuals owning cars, properties in upscale areas, or possessing investment portfolios beyond a certain threshold must now submit tax returns, even if they do not meet the taxable income limit. One of the key strategies for tax net expansion has been the adoption of digital solutions. The NBR has launched an online tax return filing system to simplify the process for taxpayers, eliminating the need for physical visits to tax offices. This system allows individuals and businesses to calculate, file, and pay their taxes online. The tax authorities have also been integrating their databases with other government agencies, such as the Bangladesh Road Transport Authority (BRTA), the Land Registry Office, and commercial banks, to identify potential taxpayers who have yet to register or file returns. This data-sharing initiative is expected to reduce tax evasion and ensure better compliance. Moreover, the introduction of the e-TDS (Electronic Tax Deduction at Source) system has improved tax collection from businesses by ensuring that tax deductions are reported in real-time. This system has already been implemented in major government and corporate entities, and it will soon be expanded to include smaller businesses and professional service providers. To widen the tax net, the NBR is also focusing on specific sectors that have traditionally been under-taxed. Monetary Policy: Private sector unhappy with lower credit flow target The real estate sector, for instance, is under increased scrutiny, with property transactions being closely monitored to assess whether buyers and sellers are properly reporting their incomes. Similarly, e-commerce and digital service providers, including content creators on platforms such as YouTube and Facebook, are now required to register for taxes. The government has introduced guidelines to ensure that income earned through digital platforms is taxed appropriately. The informal sector, which accounts for a significant portion of Bangladesh’s economy, is another area of focus. The NBR is working to bring small businesses, freelancers, and self-employed individuals into the formal tax system by offering tax incentives and awareness programs. A senior official of the NBR said that to encourage compliance, the NBR has strengthened its enforcement measures by increasing tax audits and penalties for non-compliance. Govt pushes drive to modernise NBR with new tech to augment revenue collection “The use of artificial intelligence (AI) and big data analytics is also being explored to detect discrepancies in tax filings,” he said. At the same time, the NBR has launched nationwide tax awareness campaigns to educate citizens on the importance of paying taxes. “Tax fairs, workshops, and media campaigns are being conducted to inform people about tax benefits, filing procedures, and the role of taxation in national development,” the NBR official added. Despite these efforts, the expansion of the tax net faces several challenges. A significant portion of Bangladesh’s economy operates in the informal sector, where record-keeping is minimal, making it difficult to assess taxable income. Additionally, tax evasion remains a concern, with many high-net worth individuals and businesses finding loopholes to avoid paying their fair share. To address these issues, the NBR official said, the government is considering further policy reforms, including lowering the tax burden on middle-income earners to encourage voluntary compliance. Additionally, the NBR plans to introduce a universal taxpayer database that will use AI-driven risk assessment tools to identify potential taxpayers more accurately. NBR to form committees to curb illegal tobacco trade, boost VAT collection The expansion of the tax net is crucial for Bangladesh’s economic growth and development. By increasing the number of taxpayers, the government can generate higher revenues to fund infrastructure projects, social services, and public welfare programs. Meanwhile, the government has given approval to set up nine new tax zones in different parts of the country, aiming to improve revenue collection. These offices are: Tax Zone-5 Chittagong; Tax Zone-6 Chittagong; Tax Zone-Cox's Bazar; Tax Zone-Jashore; Tax Zone-Kushtia; Tax Zone-Noakhali; Tax Zone-Dinajpur; Tax Zone-Faridpur; and Tax Zone-Narsingdi. The order issued in the public interest will come into effect immediately, according to a gazette notification. The Internal Revenue Department had given approval for the creation of a total of 28 new offices including 20 tax zones, 4 tax appeal zones, and 4 specialized offices in addition to the existing offices through administrative reform, reorganization and expansion of the Income Tax Division of the National Board of Revenue (NBR). NBR to fully operationalise bond automation this month to boost trade efficiency It also gave approval for the creation of 657 cadre posts permanently and a total of 3,943 non-cadre posts of various grades by adding/removing the manpower of 11 offices from the existing offices. Out of the newly created 28 offices, nine offices will be implemented in the second phase.

Over 1.4 million taxpayers have filed their income tax returns online this fiscal year and over 1.8 million have registered for the National Board of Revenue's (NBR) e-return system. The National Board of Revenue's online income tax return filing system has received a huge response from taxpayers, according to a NBR press release. NBR also announced that the online filing service will remain available round the year even after the Income Tax Day on February 16. Taxpayers filing returns after the deadline will not be eligible for investment tax rebates or exemptions under Section 76 of the Income Tax Act, 2023, it said. Bangladesh Bank eases loan rescheduling policy for raw jute exporters Besides, a 2% monthly penalty (up to 24 months) will be imposed on unpaid taxes as per Section 174 of the Act. The NBR expressed gratitude to taxpayers who submitted their returns online and encouraged them to continue using digital services for filing returns and obtaining income tax certificates.

National Board of Revenue (NBR) chairman Md Abdur Rahman Khan on Sunday admitted that Bangladesh is facing severe crisis while paying import bills for various essential items including fuel. “What the representative from Bangladesh Bank said, essential items like fossil fuel or gas whatever you say which is a must for running industries and transportation (sector), without these Bangladesh will not move forward. We are not properly paying these bills due to dollar crisis,” he said. He also mentioned that due to the dollar crisis the payment of bill of these imports are facing severe problems. The NBR chairman said this while holding a meeting with the stakeholders of gold importers to encourage this commercially in the country. NBR launches campaign against illegal tobacco products The Leaders of Bangladesh Jewellery Association urged the NBR to reconsider the import duty and other levies that caused 151 percent import duty for diamonds. In reply, the NBR chief mentioned that there are reasons behind this 151 percent duties and taxes. “For those purposes, the government is discouraging diamond import, maybe while the foreign exchange reserve will be better and comfortable, then everything will be opened,” he added. He pointed to the anarchic situation in the banking sector during the past Awami League regime. “That is the big reason,” he said. He gave assurances to reconsider the matter in the future when the foreign currency reserves will be in a more comfortable position. Bangladesh is currently grappling with a severe dollar crisis that has significantly impacted its import payments and overall economic stability. NBR: International trade to go fully online under a single window next month Bangladesh's foreign exchange reserves have once again dropped below $20 billion, driven by import bills and foreign debt repayments. The foreign exchange crisis in Bangladesh persists, leading to a decline in reserves to $19.93 billion as of January 22, according to the International Monetary Fund’s (IMF) BPM-6 standards. On the same day, total reserves stood at $25.22 billion, as reported by Bangladesh Bank. On January 15, the reserves were $21.3 billion under BPM-6 standards, with total reserves at $25.18 billion.

The interim government is pushing for further technological advancements at the National Board of Revenue (NBR), finding there is much ground that Bangladesh needs to make up within this specific field, even on its regional peers. It also provides the added advantage of widening the tax net, a perpetual target for tax authorities, without having to chase new taxpayers. The newest technologies are able to capture eligible payers under each category with minimum human intervention. The revenue collecting authority has taken a number of moves already to upgrade its systems, which would ultimately enhance tax collection. Finance Adviser Dr Salehuddin Ahmed, while visiting the NBR offices recently, said that revenue collection and revenue expenditure are almost satisfactory given the context of Bangladesh. “But we are still far behind regarding technological and systematic aspects,” he said. He also mentioned that the government is feeling the matter currently. “But we do not have much time (in our hand),” he added. The Finance Adviser mentioned that there is no other option to step into the modern era of revenue collection. “We have to use modern technology,” he added. In a move towards modernizing tax administration, the NBR has taken a comprehensive plan to integrate advanced technological solutions into its operations. This initiative aims to enhance efficiency, transparency, and taxpayer convenience, aligning with the government’s broader vision of a ‘Smart Bangladesh’. NBR to form committees to curb illegal tobacco trade, boost VAT collection The NBR’s technological inclusion strategy encompasses several key components designed to streamline processes and improve service delivery. Automated Tax Filing System: The introduction of an automated online tax filing system will enable taxpayers to submit returns electronically, reducing paperwork and processing time. By this system the NBR is hoping to get more than 14 lakhs of income tax return submission this time. E-Payment Platforms: Collaborations with mobile financial service providers, such as bKash, will facilitate electronic tax payments, making the process more accessible and user-friendly. Data Analytics and AI: The adoption of data analytics and artificial intelligence will assist in identifying tax evasion and improving compliance through predictive analysis. Digital Record Management: Transitioning to a digital record-keeping system will ensure secure storage and easy retrieval of tax records, enhancing operational efficiency. By the Alignment with National Digital Initiatives, the NBR is in line with Bangladesh’s ongoing efforts to bridge the digital divide and promote inclusive innovation. The government’s ‘Zero Digital Divide’ campaign, launched in 2022 with the establishment of the e-Quality Centre for Inclusive Innovation, aims to eradicate digital exclusion and promote the transfer of digital public infrastructure solutions to other developing countries. NBR to fully operationalise bond automation this month to boost trade efficiency The integration of mobile financial services into the tax payment system is expected to significantly enhance financial inclusion. Platforms like bKash have already revolutionized financial transactions in Bangladesh, providing services such as money transfers, bill payments, and mobile recharges. By enabling tax payments through such platforms, the NBR aims to make tax compliance more accessible, especially for individuals in remote areas. While the NBR’s technological inclusion initiative marks a significant step forward, it also presents challenges, including the need for robust cybersecurity measures, taxpayer education, and infrastructure development. Addressing digital inequality remains crucial, as disparities in access to technology can hinder the effectiveness of such initiatives. Talking to UNB, a senior official of the revenue collecting authority said that the NBR is committed to overcoming these challenges through capacity building, public awareness campaigns, and partnerships with stakeholders. “By embracing technological inclusion, the NBR aims to create a more efficient, transparent, and taxpayer-friendly environment, contributing to the nation’s economic growth.” NBR moves to simplify clearance system for smooth business The International Monetary Fund (IMF) has set a revised target for Bangladesh to increase its tax-GDP ratio by 0.6-percentage points for the current fiscal year. Under the government's commitment to the IMF, the tax-GDP ratio is expected to increase by 0.5 percentage points each fiscal year. Currently, the tax GDP ratio of the country is one of the lowest in the world, and it is yet to reach double digit. Bangladesh's tax-to-GDP ratio currently stands at just 7.9 percent—significantly lower than neighboring countries. India’s ratio is 12 percent, Nepal’s is 17.5 percent, Bhutan’s is 12.3 percent, and Pakistan’s is 7.5 percent.

The National Board of Revenue (NBR) is set to introduce the Authorised Economic Operator (AEO) system on February 5, aiming to streamline import and export processes by providing a seamless clearance system for businesses. Under this system, AEO-certified businesses will be able to directly transport cargo from ports to their factories or warehouses through a green channel without undergoing physical inspections. This will significantly reduce clearance time, lower costs, and improve overall efficiency in trade operations. According to NBR sources, the revenue authority has been working on implementing the AEO system for a long time. Compliant taxpayers will self-declare their tax status and conduct their own assessments before applying for AEO certification. A senior NBR official stated that the board has already issued 14 AEO certifications, with several more applications under review. The approved companies include: Popular Pharmaceuticals, Jihan and Shoeniverse Footwear, Fair Electronics, ACI Godrej Agrovet Private, Towa Personal Protective Device Bangladesh, Cutting Edge Industries, Omera Cylinders, MBM Garments, M/S Footsteps Bangladesh, GHP Ispat and BSRM. The NBR formulated the rules for this system in June last year and finalised the operational procedures in December. Additionally, it has upgraded its digital infrastructure to facilitate AEO operations. During a recent event on World Customs Day, NBR Chairman M Abdur Rahman Khan stated that once the system is introduced, compliant taxpayers will no longer face interventions from Customs authorities. NBR extends income tax return submission deadline “The imported goods will be directly delivered to their premises from vessels under the self-assessment system,” he said. He also mentioned that tax payments will be made through bank-to-bank fund transfers. The AEO system also provides international benefits if reciprocal agreements are in place with other countries, allowing certified businesses to enjoy similar privileges abroad. Introduced by the World Customs Organization in 2007, the AEO system aims to enhance global supply chains and expedite trade. Countries such as the US, the European Union, Japan, Singapore, India, and China have already adopted the system. India, for example, has more than 5,000 AEO-certified businesses. Bangladesh initially planned to introduce the AEO system in 2013, and its implementation became mandatory after two-thirds of World Trade Organization (WTO) members ratified the Trade Facilitation Agreement. In 2018, the NBR issued an official order, and in 2019, Square, Beximco, and Incepta Pharmaceuticals were granted AEO status. A 2022 NBR study on port clearance processes found that 72 to 78 percent of clearance time is spent on collecting and submitting import documents, highlighting the need for automation in trade facilitation. High-level panel wants a commission to boost NBR's capacity in revenue collection Currently, the NBR’s Customs Valuation and Internal Audit Commissionerate is reviewing applications from nearly 60 companies seeking AEO certification. According to the rules firms that want to be listed as AEOs must have an authorised capital of at least Tk 30 crore and paid-up capital of Tk 10 crore. Moreover, they must have a minimum annual turnover of Tk 10 crore for three years in a row. If the firm is not into manufacturing, their annual export or import must be of at least Tk 10 crore for three years in a row. However, the revenue board has included some criteria enabling small and medium enterprises (SMEs) alongside logistics operators to avail the status. One criterion for the SMEs says they must have conducted 20 annual shipments on an average over the past three years whereas another for logistics operators say they must have run operations in Bangladesh for the past four years. According to the rules, all companies will have to ensure at least 70 percent of transactions through formal channels like banks and mobile financial services. NBR Chairman urges businesses to stop seeking tax exemptions Interested companies must have operations of at least five years and clean records in duty, VAT and income tax payments. The inclusion of SMEs and logistics operators in the AEO framework is expected to further facilitate trade and enhance business efficiency in Bangladesh.

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. NBR Chairman urges businesses to stop seeking tax exemptions 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. Committee on NBR reform submits report advising wholesale changes in tax collection system 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. NBR explains heavy tax cut in import of air purifiers 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.

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. VAT on hotels, restaurants to be revised to previous level: NBR 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. After disgraceful 2024 ‘goat scandal’ NBR steps up efforts to curb graft 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.

The corporate income tax rate for manufacturers of refrigerators, air conditioners (AC), motorcycles and compressors has been doubled. Starting from the 2025-2026 fiscal year, the National Board of Revenue (NBR) will be able to impose an income tax of up to 20% on the producers of these products, said a notification issued in this regard on Tuesday. The NBR said that the revised tax rate will remain in effect until 2032 for these electronic appliances and motorcycle manufacturers. According to the notification, the new tax rate will be applicable from the 2025-2026 fiscal year and producers in these sectors will have to pay the increased tax on the income earned in the current fiscal year. The government is focusing on reducing reliance on both domestic and foreign debt, while also boosting revenue collection and capacity. As part of this effort, the decision to raise taxes on manufacturers of electronic goods and motorcycles has been made. After disgraceful 2024 ‘goat scandal’ NBR steps up efforts to curb graft In January 2023, the International Monetary Fund (IMF) approved a $4.7 billion loan for Bangladesh, subject to certain conditions. One of the key requirements was the implementation of significant reforms in the country’s tax system. The IMF had recommended a major overhaul to enhance revenue collection. As part of the ongoing fiscal year 2024-2025, the IMF had urged Bangladesh to raise an additional Tk 12,000 crore in revenue. It also advised the government to implement a coordinated strategy to reduce subsidies and settle arrears in the electricity and fertiliser sectors. Bangladesh currently has the lowest tax-to-GDP ratio globally, which, combined with extensive tax exemptions, has left the government grappling with financial deficits. For the 2024-2025 fiscal year, the government has provided Tk 163,000 crore in tax exemptions. The NBR began offering tax incentives to manufacturers of refrigerators, air conditioners, and motorcycles in July 2009. NBR to launch door-to-door campaign to boost VAT collection Initially, a 5% corporate income tax rate was applied for a 12-year period. Over time, these tax incentives were expanded. But, in the fiscal year 2020-2021, the tax on these products was increased to 10%. As part of the "Made in Bangladesh" initiative, the government has been providing such incentives to promote locally produced goods.