ICAB president stresses digital accounting for stronger revenue system

ICAB President N K A Mobin on Thursday said digital accounting is no longer an option for Bangladesh but an essential requirement for building a transparent, efficient and future-ready economy.

Speaking at a pre-budget roundtable titled “Digital Accounting and Revenue Mobilisation”, jointly organised by the Institute of Chartered Accountants of Bangladesh (ICAB) and The Financial Express, he said digitalisation of accounting and revenue systems would strengthen governance, compliance and economic transparency.

Mobin said Bangladesh’s manual accounting system remains highly vulnerable, while digital accounting can ensure accuracy, real-time reporting and easier access to financial information.

He welcomed the National Board of Revenue’s (NBR) ongoing efforts to digitise tax administration, saying the initiative could bring structural changes in tax assessment, collection and auditing.

However, Mr Mobin noted that challenges such as low digital literacy, resistance to change, cyber security risks and inadequate infrastructure still need to be addressed through coordinated policy reforms and capacity-building initiatives.

The ICAB president said the country’s revenue collection has failed to grow at the desired pace, with the revenue shortfall reaching nearly Tk 1 trillion during the first nine months of the current fiscal year.

“As the size of the economy expands and the next national budget is likely to exceed Tk 9 trillion, the government must increase revenue collection from direct taxes to ensure sustainability,” he said.

He also stressed the need to curb VAT evasion and tax avoidance practices to improve revenue mobilisation without increasing tax rates.

Highlighting ICAB’s Document Verification System (DVS), Mobin said the platform has strengthened transparency and accountability by enabling real-time verification of financial documents and reducing the risk of fraud and manipulation.

He suggested integrating the DVS with the NBR’s digitalisation initiatives to improve compliance and build a more transparent financial environment.

Mobin further said digital accounting, AI-driven systems and automation could help businesses maintain standardised records, allowing tax authorities to verify income, expenses and VAT submissions more efficiently.

He also emphasised encouraging SMEs to adopt digital accounting systems so they can gradually enter the formal economy and expand the country’s tax base.