Govt to modernise tax system, prioritise refunds for compliant taxpayers: NBR chairman

National Board of Revenue (NBR) Chairman Md Abdur Rahman on Wednesday said the government is working to make the country’s tax system more transparent, technology-driven and business-friendly, with a special focus on enabling tax refunds for compliant taxpayers.

“Last year, I apologised 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,” Rahman said 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, reports UNB.

The NBR chairman said digitalisation 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, very difficult—next to impossible—to tamper with the system in the coming days,” he said.

Abdur Rahman said 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,” he said.

He added that the Customs Act has already been vetted and is under technical review, while the VAT Act is being finalised 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.”

Calling on authorised 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,” he said.

Abdur Rahman said 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.”

Admitting that Bangladesh’s tax laws are still not fully aligned with international standards, he said reforms will follow gradually as discipline and compliance improve in the field level.

He reported that 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,” he said.

Abdur 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 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, 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.

He said NBR will next bring certificates for reduced withholding tax on dividends under the same digital system and then address issues related to input tax credit for manpower support services to improve VAT efficiency.

The NBR chairman 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.

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.”

He said 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.

Abdur Rahman emphasised 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 said he has 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, Abdur 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.”

He urged officers to drop the mentality of linking higher revenue collection with personal achievement. “The mindset that ‘I collected more revenue, so I’m a great officer’ must go. Everyone should just do their job properly,” he said.

Abdur 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,” Abdur Rahman asserted.

He, however, 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.

Abdur 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.”