NBR Chairman Outlines Vision for Transparent and Technology-Driven Tax System
The National Board of Revenue (NBR) has announced a series of initiatives aimed at modernizing the country’s tax system, with a focus on transparency, technology, and fairness. Md Abdur Rahman, the chairman of NBR, highlighted these efforts during a ‘Meet the Business’ event hosted by the NBR for the Foreign Investors’ Chamber of Commerce and Industry (FICCI) at the Revenue Building in Dhaka.
Rahman emphasized that the government is working to make the tax system more business-friendly, especially for compliant taxpayers. He noted that while last year’s tax refunds were not possible, this year there are plans to explore ways to provide cash refunds. “We hope to sit together and find ways to make tax refunds possible,” he said.
Digitalization and reform of tax laws remain key priorities, according to Rahman. He stated that the digital transformation aims to make the system nearly tamper-proof. “We are trying hard to make everything digital so that it will be very, very difficult—next to impossible—to tamper with the system in the coming days,” he added.
The English version of the Income Tax Act 2023 has been completed and sent to the Bangladesh Government Press for printing. “Hopefully, within next week you will get the official gazette of the Income Tax Act 2023,” Rahman said. He also mentioned that the Customs Act is under technical review, while the VAT Act is being finalized in coordination with the Legislative Division. “Very soon, all three major tax laws—income tax, customs, and VAT—will be available in English in official form.”
Strengthening Compliance and Fairness
Rahman called on authorized economic operators and compliant taxpayers to share their experiences, as the government seeks to make the system more rewarding for those who follow the rules. “Often we hear that the tax burden always increases on compliant taxpayers, while non-compliant ones remain outside the system. We are working to correct that imbalance,” he said.
This year, filing of income tax returns has become compulsory, and corporate tax returns will be submitted online from next year. “That will ensure transparency—no information can be twisted, altered, or modified. This will create a transparent tax culture in the country,” Rahman explained.
While acknowledging that Bangladesh’s tax laws are still not fully aligned with international standards, Rahman said reforms will follow gradually as discipline and compliance improve at the field level.
Revenue Growth and Digital Transformation
Revenue collection grew by over 20 percent in July-September this fiscal year, compared to just 3 percent growth in the same period last year. “If we can strengthen this process, revenue collection will continue to rise, allowing us to follow all the canons of taxation and move toward a modern, fair tax regime,” Rahman said.
To further streamline services, the NBR has announced that all Double Taxation Agreement (DTA)-related certificates will be brought under a fully digital platform through the National Single Window (NSW) system. “So far, around 625,000 certificates, licenses and permits have been issued through the Single Window system. Now, 80 percent of certificates are issued within one hour of submission,” he said.
Eighteen more government and regulatory agencies, including the NBR, are being integrated into the platform. DTA-related certificates—such as for royalties, business profits, dividends, and interest—will soon be available online. “Your complaints regarding delays in DTA certificates will be resolved soon—hopefully within a month,” he assured.
Ensuring Integrity and Fairness
Rahman warned that stern action will be taken against any official found engaged in unethical practices. “We are receiving a lot of information from whistleblowers, but the number is still small—especially among customers. If you don’t blow the whistle, the situation will never improve,” he said.
He reiterated his stance on fair customs valuation, emphasizing that it must be based on the transaction price. “It must be the transaction price, it must be the transaction price, it must be the transaction price. I repeat this five times—the transaction price.”
Customs officers may refer to recorded values from the past 90 days only when the actual transaction price cannot be determined. “But in reality, they often rely solely on recorded values. This mindset must change,” he said.
Focus on Lawful Collection
Rahman stressed that tax officials must focus on lawful collection, not inflated targets. “I will collect the tax that is lawfully due. There is no need to collect extra tax by coercion or informal means,” he stated.
He instructed all tax commissioners and customs houses not to focus on revenue totals during internal meetings. “I don’t want to hear how much money you collected. I don’t even ask that question anymore,” he said.
Using a farming analogy, Rahman explained, “If I give you land to cultivate, I will ask if you plowed it properly, used fertilizer and sowed good seeds—not how much you harvested. Likewise, if you follow the laws and instructions properly, revenue will come automatically.”
Zero-Tolerance Policy for Harassment
Rahman reaffirmed his zero-tolerance stance against harassment of taxpayers, particularly in customs valuation. “We have received complaints of inflated valuations and manipulation, and we are taking them seriously,” he said.
“My position is clear: I will take the tax that is legitimately mine; I don’t need inflated valuations to collect extra tax,” he asserted.
Combating Tax Evasion
Rahman warned that under-invoicing and false declarations would not be tolerated. “If someone brings in goods worth Tk 100 but declares them as Tk 50, we will definitely catch them. But when the declared value is correct, harassment in the name of valuation is not acceptable.”
He acknowledged that complaints of irregularities persist in customs houses across the country, which he described as a ‘big problem’ requiring urgent reform. “Consignments cleared within an hour usually face no trouble, but those that get held up for bargaining—that’s where the complications arise,” he said.
Rahman vowed to end such practices once and for all. “We must free ourselves from this situation. Both administrative and policy-level measures are being taken to restore trust and integrity in customs operations.”
