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The revenue authority has proposed a series of policy and administrative reforms aimed at boosting the country's chronically low tax-to-GDP ratio, including measures to prevent abrupt tax-policy changes and strengthen investor protection.
The proposals are part of a draft 180-day reform plan prepared by the National Board of Revenue (NBR), which will be placed before the Cabinet as the newly elected government moves to implement revenue-related pledges from its election manifesto.
Stopping abrupt policy changes through the implementation of a tax expenditure policy and introducing investor protection regulations are among the key steps proposed to increase the country's tax ratio, according to a draft plan.
After taking office, the government asked all ministries and departments to submit their respective 180-day plans to the Cabinet.
The draft proposal of the VAT wing, obtained by The FE, outlines implementation strategies, output indicators and how the measures could help realise the revenue-related pledges in the ruling party's manifesto.
According to the document, introducing investor protection regulations would help ensure tax predictability and safeguard investors' rights. This could be achieved through amendments to the existing tax expenditure policy.
The National Board of Revenue (NBR) prepared the draft plan in line with the manifesto of the newly elected government, which aims to raise the country's tax-to-GDP ratio to 15 per cent by 2035.
As the manifesto pledges to eliminate illogical tax reforms and simplify international payment systems, the NBR plans to introduce e-invoicing, make the Business Identification Number (BIN) mandatory for opening bank current accounts, and require it for obtaining utility services for businesses.
These initiatives would be implemented under the Strengthening Domestic Revenue Mobilisation Project (SDRMP), which focuses on expanding the tax base.
On the digitisation of VAT refunds, the NBR has already introduced a VAT refund module, which is expected to become fully operational by June 2026.
The BNP's manifesto also pledges to adopt integrated strategies for developing the service sector by offering incentives for multinational companies to establish regional research centres and by ensuring required services through a single-window platform.
To implement these commitments, the NBR plan identifies the National Single Window and VAT incentives as effective policy tools.
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