NBR eyes digitalisation to boost tax compliance, widen base

The National Board of Revenue (NBR) is increasingly adopting information technology to improve compliance, expand the tax base and reduce human discretion in revenue administration, its chairman Abdur Rahman Khan said on Saturday.

“With digital data, we can analyse taxpayer behaviour and assess the likely impact of policy measures with greater accuracy,” he said, noting that such capabilities were largely absent under the previous manual system.

He was speaking at a pre-budget seminar organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) at its Nilkhet auditorium in the capital on Saturday evening.

Despite efforts to increase tax collection, the country continues to face significant budget deficits, reflecting structural inefficiencies and widespread non-compliance, Mr Khan said. He stressed that a key priority is to bring more taxpayers under the net through automation rather than manual enforcement.

The NBR has already made online return submission mandatory for all taxpayers. Around 4.4 million returns have been filed digitally so far, a figure expected to reach nearly 5.0 million by the end of the current cycle. The shift to e-filing is helping build a comprehensive database for policy analysis and targeted enforcement.

Digitalisation is also enabling the authority to identify non-filers more efficiently. Automated systems can now generate lists of non-compliant taxpayers and issue notices without human intervention—something that was nearly impossible under the earlier paper-based system.

Automation is being extended to audit selection as well, aiming to ensure fairness and reduce harassment. The NBR has introduced risk-based and randomised digital methods to select cases for audit, replacing discretionary practices.

The revenue authority is also working to link banking data with tax records, Mr Khan said, adding that taxpayers will soon be able to import key financial information—such as account balances, interest income and tax deductions—directly into their returns, reducing errors and compliance costs.

Among others, Mahtab Uddin Ahmed, chairman of the Seminar and Conference Committee and past president of ICMAB, delivered the welcome address. Keynote papers were presented by Ranjan Kumar Bhowmik, former NBR member (Tax); Mashiur Rahaman, First Secretary (VAT Policy & VAT Exemption), NBR; and Md Mohiman, CEO of MM & Co., Cost and Management Accountants.

ICMAB President Kausar Alam, in his address, underscored the need to improve the tax-to-GDP ratio, broaden the tax base, ensure financial sector stability and create a more conducive environment for both domestic and foreign investment to achieve sustainable and inclusive growth.

The programme ended with a vote of thanks from Monjur Md Shaiful Azam, secretary of ICMAB.

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