The National Revenue Board (NBR) fell short of its revenue collection target by Tk41,879 crore in the first three months of the current FY27.
Against the quarterly target, the agency managed to collect only Tk92,517 crore.
To address this massive deficit, expand the tax net, and ensure return submissions, the board has launched new initiatives.
The NBR is issuing door-to-door notices to non-filing taxpayers while working to identify deceased and inactive Taxpayer Identification Number (TIN) holders, according to sources within the organization.
Currently, Bangladesh has nearly 13 million TIN holders.
However, in the previous fiscal year, only about 5 million taxpayers filed income tax returns.
This leaves roughly 8 million TIN holders who did not submit returns.
The NBR currently lacks specific data on how many of these individuals are deceased, how many lack taxable income, and how many are intentionally avoiding submission.
NBR officials noted that despite having a vast number of TIN holders, bringing them all into the active tax net remains difficult.
Some obtained TINs for specific registration or service needs but lack taxable income today, while a portion of non-filers has passed away.
Consequently, separating active, legitimate taxpayers from inactive TIN holders has become vital.
An NBR official, speaking on condition of anonymity, stated that tax zones are sending letters to non-filing individuals and institutions.
However, due to incorrect or outdated addresses, nearly 40% of the notices are returned, and only 10% of recipients respond.
A shortage of manpower and logistical resources further hampers efforts to scale up monitoring.
To identify deceased individuals among long-term non-filers, the NBR plans to collect data from the National Election Commission (EC).
The agency intends to cross-reference the NBR’s TIN database with EC voter roll removals due to deaths.
Additionally, the board plans to source records from birth and death registration authorities to verify and resolve these accounts.
Currently, there is no direct online mechanism to cancel the TIN of a deceased person or an unnecessary account.
To deactivate a deceased person's TIN, legal heirs must submit an application to the relevant tax circle office.
The absence of an integrated central database for deaths complicates the identification and deactivation process.
Tax zones have also been directed to identify living but inactive TIN holders who fail to file returns.
However, outdated contact information continues to hinder results, prompting the formation of a dedicated committee to determine next steps.
Commenting on the situation, M Masrur Reaz, chairman of Policy Exchange of Bangladesh, emphasized that expanding the tax net must go hand-in-hand with making return filings effective.
He stressed the urgent need to build a reliable database of deceased persons and update the NBR's existing records.