Khasru outlines revenue reforms to phase out debt dependency

Finance and Planning Minister Amir Khasru Mahmud Chowdhury on Tuesday announced a major overhaul of Bangladesh’s revenue administration aimed at ending the nation's reliance on foreign borrowing and financing national development primarily through domestic resources.

Speaking at the inauguration of Revenue Conference 2026 at the Bangladesh-China Friendship Conference Center in Dhaka, the minister emphasized that revenue mobilization remains the government's primary challenge for FY27, which sets a total revenue collection target of Tk695,000 crore—with Tk604,000 crore slated for collection through the National Board of Revenue (NBR).

He noted that boosting internal resource collection is vital to meeting the country's broader target of achieving upper-middle-income status by 2029 and building a $1 trillion economy by 2034.

As part of structural reforms, the government has finalized the decision to bifurcate the current NBR architecture into two distinct bodies: a Revenue Policy Division and a Revenue Management Division.

The Policy Division will operate as a specialized body responsible for formulating competitive, development-friendly tax policies in consultation with economists, researchers, and trade bodies.

The Management Division will handle revenue collection, law enforcement, and tax administration.

Addressing operational inefficiencies and harassment complaints, the minister directed revenue officials to transition toward a fully "contact-free" and "faceless" tax administration powered by automated platforms such as e-tax systems, e-VAT, the National Single Window, and risk-based audit selection.

He urged taxpayers to remain compliant while warning that strict legal measures will be enforced against deliberate tax evasion.

The minister further outlined plans to broaden the tax net, phase out legacy tax exemptions for mature industrial sectors to ensure a level playing field, and institutionalize Alternative Dispute Resolution (ADR) mechanisms to expedite pending tax litigation.

To improve service delivery, the government plans to introduce a "Taxpayer Service Charter" setting binding timelines for administrative services and dispute resolutions.

The conference was inaugurated by Prime Minister Tarique Rahman, while Rashed Al Mahmud Titumir, adviser to the prime minister on finance and planning, addressed the gathering virtually.

Acting NBR chairman Ahsan Habib presided over the ceremony.