Amid allegations that many businesses’ revenue contributions to the NBR do not align with their market share, creating unfair competition for compliant taxpayers, the National Board of Revenue (NBR) chairman Md Abdur Rahman Khan on Wednesday confirmed that the government aimed to make the tax system more rewarding for those who followed the rules.
He apologized for last year, as NBR was unable to offer any cash refunds to taxpayers.
Khan said all this while addressing 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.
In a question-and-answer session, a business representative said that the compliant taxpayers face discrimination because many business groups do not pay taxes commensurate with their market share.
Calling upon the authorized economic operators and compliant taxpayers to share their experiences, the NBR chairman said: “The government wants to make the system more rewarding for those who comply. 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.”
Regarding the cash refunds to taxpayers, the NBR chairman said: “The revenue board also has a special focus on enabling tax refunds for compliant taxpayers. Last year, I apologized that we couldn't offer any cash refunds to taxpayers. This year, we hope to sit together and find ways to make tax refunds possible.”
In response to a question from Marico Bangladesh representative Md Sharif, the NBR chairman said that the authority no longer grants tax exemptions, as such decisions now rest with Parliament, a change that has eased pressure on the board.
During the discussion, Daraz representative Hasibul Quddus proposed bringing both online and offline product sellers under a uniform 15% VAT structure.
In reply, the NBR chairman noted that only about six lakh traders currently hold VAT registration, leaving many retailers outside the system.
The meeting also featured open discussions on the challenges businesses face related to taxation, customs, and duties, allowing participants to present their concerns directly to the NBR’s top officials.
Last month NBR decided to hold a monthly "Meet the Business" session on the second Wednesday of each month to directly engage with business representatives and address field-level challenges related to Customs, Income Tax, and VAT.
These meetings facilitate dialogue between the NBR chairman, board members, and businesses to improve revenue administration, streamline procedures, and enhance trade facilitation in Bangladesh.
This was the second meeting organized by the revenue authority.
NBR Chairman Md Abdur Rahman Khan said that the government was working to make the country's tax system more transparent, technology-driven, and business-friendly, with digitalization and reform of tax laws remaining as top priorities.
“Digitalization and reform of tax laws remain top priorities to bring discipline and efficiency to the revenue administration. We are trying hard to make everything digital so that it will be very difficult—next to impossible—to tamper with the system in the coming days.
Rahman informed: “The English version of the Income Tax Act 2023 has been completed and sent to the Bangladesh Government Press for printing. Hopefully, within the next week, you will get the official gazette of the Income Tax Act 2023.”
“The Customs Act has already been vetted and 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.”
Md Abdur Rahman once again noted that “the filing of income tax returns has been made compulsory this year, while 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.”
Reforms so far
Admitting that Bangladesh's tax laws are still not fully aligned with international standards, so reforms will follow gradually as discipline and compliance improve at the field level.
He reported that revenue collection grew by over 20% in July-September this fiscal year, compared to just three 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 and fair tax regime.”
Rahman also announced that the NBR will soon bring all Double Taxation Agreement (DTA)-related certificates under a fully digital platform through the National Single Window (NSW) system to simplify and speed up services.
“So far, around 625,000 certificates, licenses, and permits have been issued through the Single Window system. Now, 80% 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, Rahman said, adding that 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.
Reiterating his firm stance on fair customs valuation, Rahman stressed, "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.
Rahman emphasized 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. All tax commissioners and customs houses are not to focus on revenue totals. I don't want to hear how much money you collected. I don't even ask that question anymore.”
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. My position is clear: I will take the tax that is legitimately mine; I don't need inflated valuations to collect extra tax.”
He warned that “under-invoicing and false declarations would not be tolerated. If someone brings in goods worth Tk100 but declares them as Tk50, we will definitely catch them. But, when the declared value is correct, harassment in the name of valuation is not acceptable.”
A representative from Coca-Cola expressed concern that high taxes were eroding the company’s profit margins.
The NBR chief acknowledged the issue, saying that the board also faces pressure from health and environmental activists regarding taxation on tobacco and beverages.
The program was moderated by Ficci executive director TIM Nurul Kabir.
Earlier, Mutasim Billah Faruqui, Member (Tax Policy), NBR, gave the welcome speech.
