United News of Bangladesh

Finance Adviser Dr Salehuddin Ahmed on Tuesday said the government is moving forward with reforms to stabilise the banking sector, rationalise subsidies in the power sector, and strengthen revenue mobilisation, while remaining cautious about growing foreign debt under the IMF programme. Briefing reporters after a meeting at the Secretariat, the adviser said syndicates and rent-seeking practices remain a challenge in the domestic market but stressed that enforcement measures have been intensified to reduce extortion and safeguard consumers. Dr Salehuddin, however, admitted that extortion has increased across the country since August 5 last year, saying the interim government alone cannot control the menace without political commitment and an elected government in place. The adviser said the problem has worsened in recent months. “Where previously one taka was being extorted, now it is one and a half or even two taka. After August 5, multiple groups became involved in extortion, while those who were active before are also still behind it. Many of those engaged in extortion are members of business organisations,” he said. Dr Salehuddin observed that extortion is fueling price hikes. “This is one of the reasons why commodity prices are increasing. But it is not the direct responsibility of my ministry to control this. The interim government does not follow a ‘catch this person, catch that person’ policy,” he explained. The adviser, however, expressed optimism that inflationary pressures will ease in the coming months. “By June next year, we expect inflation to come down to around 7 percent,” he said. Dr Salehuddin noted that although the banking sector went through a difficult period marked by liquidity pressures and complications in opening letters of credit (LCs), the situation has eased. “We are seeing greater stability now. LC-related barriers that disrupted imports last year are no longer acute. Weak banks are being supported to remain afloat, but we are not allowing irregularities to go unaddressed,” he said. Process to recover laundered money progressing gradually: Finance Adviser The adviser emphasised the urgent need to broaden the tax net. “The National Board of Revenue (NBR) has already rolled out the National Single Window digital system, which is streamlining customs and taxation processes. For the first time, many powerful individuals who had previously remained untouched are receiving tax notices,” he said, adding that strengthening a culture of compliance is central to restoring fiscal balance. Turning to the power sector, the adviser said subsidies have reached an unsustainable level. “The government has already spent massive amounts to keep electricity affordable. It will not be possible to increase subsidies further. Power companies must now work to reduce their own costs and improve efficiency,” he said, indicating that future tariff adjustments would have to be more carefully managed. Dr Salehuddin said that the government is reviewing pension reform models, including a “one pay, one pension” framework, but stressed that a universal pension system will take more time to materialise. “It will be a gradual process, requiring strong financial backing and careful implementation,” he explained. Commenting on the upcoming national election, the adviser observed that the political climate has been relatively calm. “Major parties have expressed interest in contesting, which is a positive sign. The army, along with other law enforcement agencies, will play a critical role in maintaining law and order during the electoral process,” Dr Salehuddin said. Finance Adviser stresses strengthening capital market to reduce bank dependency He also stressed the importance of maintaining stability in the country’s foreign reserves by prioritising payments to international investors and curbing capital flight. “Foreign reserves are lower compared to previous years, but the situation is not yet at a crisis level. Our commitment to honouring international payment obligations remains firm,” he noted. The finance adviser concluded by urging transparency, accountability, and continued reforms across economic sectors. “Bangladesh still has policy space to steer the economy, but sustaining reforms is essential to protect public trust and strengthen resilience against external shocks,” Dr Salehuddin said.

Shrimp, once known as the ‘white gold’ of Bangladesh’s southwest and a major export from Khulna, has declined due to fierce global competition and the growth of vannamei shrimp farming in neighbouring countries. Now, after years of stagnation, the sector is showing signs of recovery as the Department of Fisheries has rolled out a series of measures aimed at restoring the industry’s lost luster, and the results are beginning to show. According to the Export Promotion Bureau (EPB), shrimp exports from Khulna over the last five years totalled Tk 11,300 crore. Authorities have now set an ambitious goal to double that figure within the next five years. Department of Fisheries data reveal that the region exported 1,53,388 metric tonnes of fish between FY2020 and FY2025, generating Tk 13,456 crore in revenue. Of this, shrimp accounted for 1,02,339.629 tonnes, bringing in Tk 11,301 crore. 500 shrimp enclosures washed away after an embankment collapsed  in Satkhira In FY2024-25 alone, Khulna produced 1,23,151.17 metric tonnes of shrimp, with 19,512 tonnes exported — earning Tk 2,499 crore. The shrimp export rate for the region during the year stood at 42.19%. To boost output, the Khulna office of the Department of Fisheries has adopted several strategic initiatives. These include advanced training in shrimp cultivation for 10,750 farmers, supplying equipment to 7,500 of them, and promoting cluster-based farming to help traditional farmers multiply their yields two- to fivefold. Demonstrations under ‘Field Days’ are motivating farmers, while biosecurity and hygiene measures are being enforced to ensure better quality. Officials are also encouraging farmers to pursue third-party certification for improved prices in international markets. Lipton Sardar, Divisional Fisheries Inspection and Quality Control Officer in Khulna, stressed the need for long-term, shrimp-focused projects. “There needs to be a dedicated policy framework for shrimp, including zoning of shrimp farming areas, infrastructure development, timely supply of disease-free larvae and guaranteed access to quality feed,” he said. He also highlighted the importance of strict testing of fry, feed, medicines and chemicals, alongside the establishment of a separate staffing structure to oversee production and quality control in shrimp-rich districts. “Building institutional capacity to diagnose and treat shrimp diseases, while ensuring responsible practices among exporters, is essential to restore buyer confidence,” Sardar added. Tariqul Islam Zahir, Senior Vice President of the Frozen Foods Exporters Association, said the region once had 63 shrimp processing companies, but declining production and global market demand forced 33 to close. “Despite increased bank interest rates and rising electricity bills, some companies are still operating. The frozen shrimp sector is now beginning to recover,” he said, urging the government to provide subsidies for power and production costs. Exporters say shrimp remains vital to the national economy. However, falling demand and prices in Europe, coupled with irregular payments from foreign buyers, have hurt earnings. Viral outbreaks have further dented production, while the COVID-19 pandemic, the Russia-Ukraine war and domestic political turbulence compounded challenges. Repeated shipment cancellations pushed many exporters to the brink of collapse. Yet a recent surge in exports has rekindled hope across the industry. Stakeholders in Khulna believe that, with continued policy support and improved production standards, the ‘white gold’ can reclaim its former glory and secure an even stronger foothold in the global seafood market. Read more: Khulna falls short of jute production target for lack of incentives

The National Board of Revenue (NBR) is on an earnest drive to expand the tax net in the coming days, aiming to improve the tax-GDP ratio, a key figure as it relates to a variety of forthcoming economic matters for the country. The International Monetary Fund (IMF) has asked to increase the tax-GDP ratio to 7.9 percent by next June - which currently languishes at 7.4 percent. Raising the ratio is related with unlocking the 3rd and 4th tranches of the $4.7 billion loan program Bangladesh entered into with the IMF in 1991. According to the NBR, some 1.15 crore individuals have taken electronic Taxpayers Identification Number (ETIN), but only 45 lakh have submitted their income tax return, and one third claimed to have zero return. “We have scope to expand the tax net,” NBR chairman Md Abdur Rahman Khan told a recent pre-budget meeting. Meanwhile, the NBR through its countrywide field level offices has launched a new Spot Assessment programme to increase the tax net. Spot Assessment is an effective step to provide direct services to all taxpayers who have taxable income and are obliged to file returns. This program is encouraging new taxpayers to pay income tax spontaneously. NBR mulls amending VAT law to make officers account for lapses Various tax zones of the country have already started this program, which is playing an important role in increasing tax awareness and building a tax paying culture among businessmen, professionals and the general public. Currently, tax zones have actively started conducting Spot Assessment at district and upazila level of the country. “We are getting reports regularly regarding the new taxpayers' inclusion and the revenue collection from them,” the NBR chairman said. The NBR urged all business organisations, chambers of commerce, business leaders, local administrations, eminent persons and taxpayers of the country to provide their unwavering support and cooperation to make the ongoing Spot Assessment activity successful. “We need support from the business leaders to know who would be the capable new taxpayers, they would encourage the other eligible business people to pay taxes and inform them of the advantages and disadvantages of paying and not paying taxes,” he said. NBR officials may ‘lose grip’ as govt plans new revenue division The NBR hoped that spontaneous participation of taxpayers will make this activity successful and continue to invest in ongoing development projects and will directly contribute to the necessary funding to ensure the country's infrastructure development, education, health and other civic amenities. The NBR believes that through the Spot Assessment activity, the tax payment tendency among taxpayers will increase and the tax system will be further strengthened. A senior official of the NBR said that there is no tax day for the new taxpayers, they can enlist themselves and submit their income tac return at any time. “There is no time bar for them, we want to encourage the new taxpayers to include them in the tax net,” he said. Meanwhile, in a meeting held on April 7, the IMF asked the NBR to collect some Tk 2 lakh crore in the next months to meet the conditions for the last two tranches  of the $4.7 billion loan. The IMF has suspended the disbursement of the third and fourth tranches of its $4.7 billion loan package to Bangladesh, citing non-compliance with key reform conditions. The decision follows a review of the country’s macroeconomic indicators and structural performance benchmarks under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements.    

Revenue officials of the National Board of Revenue (NBR) may ‘lose their dominance—or even their positions’—within the upcoming Revenue Policy Division, as the government will be able to appoint any suitably qualified government officers to the post of Secretary or to that of Senior Secretary of this new division. “The government shall appoint a suitably qualified government officer to the post of Secretary or Senior Secretary of the Revenue Policy Division,” according to the draft law in this regard. This new Division will be under the Ministry of Finance. NBR includes tax intelligence unit in remuneration policy Even the Customs, Excise and Value Added Tax Appellate Tribunal and the Income Tax Appellate Tribunal will be attached departments of this Revenue Policy Division under the Finance Ministry. The interim government recently approved the draft law to divide NBR into Revenue Policy Division and Revenue Management Division. It was proposed by the committee to provide recommendations on tax policy reforms, improvements in tax administration, automation and other related matters. The government formed the committee on October 9 last year, comprising former NBR chairmen Muhammad Abdul Mazid and Nasiruddin Ahmed and former NBR members Delwar Hossain and Aminur Rahman. As per the draft law, various posts in the Revenue Policy Division will be filled by officers with experience in income tax, value added tax, customs, economics, business administration, research and statistics, administration, audit and accounting and legal work. According to the proposed law, it is necessary to separate the government's revenue policy formulation activities and revenue collection management activities. The proposed law says it is necessary to create a Revenue Policy Division and a Revenue Management Division by restructuring the current system to make revenue collection more transparent, accountable and efficient. Yarn importers with prior LCs to be allowed to use land ports: NBR As Parliament is in a state of dissolution and it appears to the President to his satisfaction that the circumstances exist which require immediate action, the President, by virtue of the powers conferred by Article 93(1) of the Constitution of the People's Republic of Bangladesh, will promulgate the Ordinance, which will be called The Revenue Policy and Revenue Management Ordinance, 2025. After the promulgation of this Ordinance, the government shall, by notification in the official gazette, establish a new division called the Revenue Policy Division, which shall be under the Ministry of Finance. The government will formulate an appropriate organizational structure for the Revenue Policy Department. Scope of work of the Revenue Policy Division. The Revenue Policy Department shall perform the following functions, namely: (a) To introduce a sound tax system by following the principles of expansive tax base, reasonable tax rate, limited tax exemption with the aim of providing the necessary revenue for the administration of the state by prioritizing the goal of overall economic development of Bangladesh. (b) To take initiatives to formulate new laws mentioned in the schedule, The Stamp Act, 1899 and other related laws or to amend them. (c) To formulate, amend and provide interpretations of rules and regulations, notifications, S. R. and other related laws related to revenue policy. (d) Activities related to stamp duty, income tax, travel tax, gift tax, wealth tax, customs duty, value added tax (VAT), supplementary duty, excise duty, surcharge and other customs duties, fee imposition, reduction, increase and exemption. (e) Rapid implementation of integrated automation activities with the Revenue Management Department and related organizations. (f) Monitoring the implementation of tax laws and tax collection situations. (g) Coordination with the Revenue Management Division on the implementation of customs and tax policies. (h) Execution of international agreements related to customs and providing opinions. (i) Activities related to international double taxation avoidance agreements. (j) Analysing the global and local context and statistics related to revenue and conducting research activities related to tax policy. (k) Analysing and researching revenue data and data to make appropriate forecast and estimate of revenue income; (l) To undertake and implement necessary projects to increase the efficiency, effectiveness and dynamism of revenue policy activities and to ensure transparency and accountability; and (m) Perform any other duties assigned by the Government. As per the draft law, the Government shall, by official notification, constitute an Advisory Committee consisting of economists, revenue experts, legal experts, accounting and audit experts, representatives of business organisations and professionals and the Tariff Commission, and the concerned ministries or departments, for the purpose of providing regular advice to the Revenue Policy Department in formulating revenue policy. The terms of reference and term of office of the committee shall be determined by the Government.    

The revenue collection deficit in the first six months of the running 2024-25 fiscal is close to Tk 58,000 crore. In July-December, the NBR's revenue collection target was Tk 214,000 crore. And Tk 156,276 crore was collected. The amount is Tk 10,000 crore less than the same period in the last fiscal. The revenue collection in the first six months of the 2023-24 fiscal year was Tk 1,65,630 crore. Revenue officials say that business and trade were disrupted due to student and public agitation and political unrest in July-August. This has affected revenue collection. NBR revises VAT rates across sectors Only one-third or 32.5 percent of the target revenue was collected in the first six months of the fiscal year. The NBR has a target revenue collection of Tk 480,000 crore in the current fiscal year. According to NBR sources, the deficit in customs and tax collection against the target in the first six months of the current fiscal year stood at about Tk 57,724 crore. According to NBR sources, none of the three sectors - imports, VAT and income tax - met the six-month target during July-December. During this period, the highest deficit was recorded in the income tax sector. The revenue collection target in this sector was Tk 76,670 crore. Against that, Tk 52,162 crore was collected. Committee on NBR reform submits report advising wholesale changes in tax collection system On the other hand, in the first six months of the fiscal year, the import duty sector collected Tk 49,800 crore against the target of Tk 61,952 crore. In July-December, Tk 55,177 crore was collected as VAT. At that time, the target of VAT was Tk 66,317 crore.

Mongla Port has earned Tk 210 crore in revenue during the first six months of the fiscal year 2024-2025, handling significant imports and exports. During this period, 413 commercial vessels arrived at the port, while 5,637 vehicles were imported through 10 car-carrying ships. In the meantime, the port managed a total of 52,84,471 tonnes of goods in imports and exports, according to a press release from the port authorities. In addition, the influx of foreign commercial vessels at Mongla Port surged as 2025 began. A total of 28 commercial ships have docked at the port in the first 10 days of January. On Friday, two container ships carrying cargo for the Rooppur Nuclear Power Plant were anchored at Mongla Port. As of now, 18 ships are stationed across various points of the port, said the release. Deputy Director of Mongla Port Authority Md Makruzzaman said that the arrival of foreign commercial ships at Mongla Port has increased as 2025 began. Mongla Port set for major overhaul, enhanced connectivity: Adviser Sakhawat “Currently, there are 18 commercial ships at different locations in the port's Pashur Channel. These ships carry various products including coal, fertiliser, clinker, LPG, container transport and stone,” he mentioned. The release further highlighted a positive growth trajectory for Mongla Port, noting a 2.30 percent increase in the arrival of foreign commercial ships, a 9.72 percent rise in cargo volume, a 16.78 percent increase in container traffic and a 13 percent growth in vehicle imports during the fiscal year 2023-2024 compared to the previous year.

Bhomra land port in Satkhira has posted impressive revenue of Tk 16.24 crore from the export of various products to India in the first half of fiscal year 2024-25, according to the National Board of Revenue (NBR). The increasing exports through this land port have significantly contributed to the country's foreign exchange earnings, as revealed by an analysis of comparative data collected from the port's entry section. Sources said a total of 23 types of local products are currently being exported to India through the port. The products include yarn, waste, cleaning cloth, caps, jute yarn, polyester staple fiber, mustard oil, furniture, mosquito nets, polyester thread, fish nets, plastic bathroom fittings, handloom saris, lungis, clay products, unrefined sesame oil, cotton waste, travel bags, soy acid oil, readymade garments, toasts, juices, chips and lychees. In July 2024, the port earned Tk 2.34 crore, Tk 2.63 crore in August, Tk 2.77 crore in September, Tk 2.43 crore in October, Tk 3.15 crore in November and Tk 2.96 crore in December, totalling Tk 16.24 crore. Read: Sheola land port fails to meet revenue target Abu Musa, general secretary of the land port C&F Agents Association, said Bangladesh is benefiting from export opportunities, similar to other developing countries. He also said traders are increasingly opting for this port, resulting in a rise in both imports and exports, thereby boosting government revenue due to the proximity of the land port to Kolkata. Abul Kalam Azad, deputy commissioner of the land port, confirmed that the export trade with India has increased recently through the land port, resulting in bagging Tk 16.24 crore from the first half of the current fiscal year. Read more: Trade with India through 3 land ports suspended, uninterrupted at Benapole He said that the port has witnessed an export growth rate of 18.95% compared to other land ports in the country.

The decision to raise VAT and taxes on various products has been taken to boost government revenue rather than to meet International Monetary Fund (IMF) conditions, Finance Adviser Dr Salehuddin Ahmed said on Thursday. Speaking to journalists after a meeting of Advisers Council Committee on Government Purchase at the Secretariat, the adviser said the adjustments were necessary to fill revenue gaps created by significant tax exemptions on certain goods. Salehuddin Ahmed said that the hike in VAT on 43 items would not affect the prices of essential commodities or burden ordinary citizens. He said that higher taxes have been imposed on luxury items, such as three-star and higher-rated hotels, while sparing establishments of standard quality. "The objective is to ensure a balanced revenue collection system that does not inconvenience the general population," he said. IMF again eases foreign exchange reserve target for Bangladesh The adviser, however, expressed optimism about economic stability in the coming year, adding that banks would receive sufficient support to maintain liquidity. "We aim to allocate increased budgetary resources to education and health, strengthening these vital sectors," he said. The proposal, which has been sent for presidential approval, will be implemented through an ordinance once authorised. While the adjustments target luxury goods, concerns persist regarding their potential impact on the broader economy.

National Board of Revenue (NBR) chairman Md Abdur Rahman Khan on Monday said the government would try to introduce single rate VAT system in the country to reduce the leakage in revenue collection. Speaking at a press briefing marking VAT Day 2024, he emphasized the importance of expanding the VAT net and rationalizing tax exemptions to address the country’s economic challenges. “A single rate VAT system will not only reduce leakages but also make administration much easier. We are definitely working towards that goal,” Khan said during the event at the NBR conference room. This year’s VAT Day is themed, “We all will pay VAT and contribute to development.” The NBR chief highlighted plans to gradually phase out VAT exemptions while consulting stakeholders. “It does not mean that this has to be done right now. We will do that after consultation with the stakeholders,” he said. NBR plans online tax reforms to simplify process for taxpayers Khan expressed concern over the low number of registered VAT payers—currently just over 500,000—despite a significant number of eligible businesses operating outside the system. “The VAT net is still very narrow, leaving enormous room for expansion. We need to bring non-compliant businesses into the fold and expand the tax base urgently,” he said. The NBR has committed to intensifying supervision and targeting non-VAT-paying businesses. “Expanding the VAT net is crucial to bridging the revenue collection gap, especially as we face a shortfall in the first five months of the fiscal year,” he explained. The NBR chairman acknowledged the ongoing economic crisis and emphasized the importance of strengthening revenue collection to support recovery. “If we want to recover from the economic crisis and move forward, there is no alternative to increasing tax revenues,” he said, urging VAT officials to work with honesty and diligence. He also pointed to the impact of widespread tax waivers on revenue collection in recent months. “While tax waivers were introduced to benefit the masses, they have significantly affected revenue. We must reduce tax waivers and rationalize exemptions as the economy improves.” The NBR chairman outlined the agency’s efforts to create a robust and fully online VAT system. “We have automated VAT registration, filing, and payment systems and are now focusing on introducing an e-invoice system to eliminate flaws and improve efficiency,” he said. The shift from paper-based processes to digital systems aims to simplify procedures for stakeholders, encouraging broader participation. Additionally, VAT rates on essential goods like sugar, eggs, potatoes, and edible oil have been reduced in response to current economic realities, while excise duties on Hajj passenger tickets have been waived. He reiterated the NBR’s commitment to fostering a business-friendly environment and strengthening the country’s tax culture. “By involving consumers, traders, and industrial owners, we aim to build a Bangladesh of dreams—one that is inclusive and free of discrimination.” “The success of the VAT system depends on the widespread participation of stakeholders. It is hoped that all these promotional activities will be quite helpful in building a tax culture in the country, which will contribute to increasing VAT collection in the future. The desired development will be achieved in its continuation. We will become a happy, beautiful and prosperous country,” said the NBR chairman.

The National Board of Revenue (NBR) is now putting its focus on settling the long pending cases through Alternative Dispute Resolution (ADR) system to boost the revenue collection. The revenue collecting authority of the country is at unease as the first two months of the running FY24-25 saw a setback in the collection due to the political unrest, officials said. A senior official of the NBR said that all commissionaretes have been asked to make a list of long pending cases which can be settled through the ADR. The NBR official said that emphasis has been given to utilise the ADR system to clear these cases. The official wished anonymity as he is not authorised to speak on the subject. In a recent meeting, NBR Chairman Md Abdur Rahman Khan asked the officials to take effective steps in this regard, said another official this week. "The NBR chairman also asked the officials to take all out efforts to realise the outstanding taxes," the NBR official said. The NBR introduced ADR on July 1, 2012 to speed up disposal of the revenue-related cases through out-of-court settlement. NBR reforms advisory committee likely to start work next week despite some confusions ADR is a tool that parties can use to settle disputes with the help of a third party. It is used for disagreeing parties who cannot come to an agreement short of litigation. However, ADR is also increasingly being adopted as a tool to help settle disputes within the court system. The NBR chairman has asked the  officials concerned to expedite the Alternative Dispute Resolution (ADR), the NBR official told UNB. Another senior official of the NBR said that as per the law taxpayers have to apply to resolve the tax related disputes. He mentioned that some taxpayers always try to evade tax and feel encouraged to settle the matter in the courts.  He also said that those who failed to make any headway in the courts usually come to the ADR system for resolving their disputes. An NBR official involved in the ADR said that due to the reluctant attitude from the businesspeople of the country the system is yet to give its full swing benefit for them and also for the national exchequer. "The NBR has taken various types of initiatives to vibrant the system, and a former NBR member has been appointed after forming a neutral cell for this system," he said. The NBR chairman, while talking to reporters recently, said ADR is a system where both parties can avail a win-win chance. NBR accelerates efforts to clear revenue case backlog He mentioned that if the taxpayers and tax authority do not come to a consensus then there is nothing to do in this ADR system. “For that reason many do not want to go to the ADR process,” he said. In this connection, the NBR chairman pointed out the reluctant attitude of taxpayers and tax collecting authority as they both want to win it all. “In ADR system both have to compromise or both have to sacrifice, that is the meaning of the ADR,” he said. The chairman  mentioned that those who are involved in the ADR are very much experienced and know the law very well. “They try to convince both parties to come for a consensus. If the taxpayers and tax collecting authority do not want to go for a long legal battle then ADR is the best option,” the NBR chairman said. As per available data, there are more than 27,000 cases pending in various courts related to income tax, Vat and duty involving not less than Tk 39,000 crore. Read more: How to file your Tax Returns in Bangladesh