United News of Bangladesh

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.    

The government is likely to appoint officials from administration cadre alongside existing employees in the proposed Revenue Management Division, according to a draft law recently approved by the Advisory Council. According to the draft law which lays out the structure for the new division,  “Various posts in the administrative division of the Revenue Management Division will be filled from the Bangladesh Civil Service (Administration) cadre and employees working in the National Board of Revenue (NBR).” The interim government has already cleared the draft law which seeks to split the National Board of Revenue (NBR) into two separate entities: the Revenue Policy Division and the Revenue Management Division. NBR officials may ‘lose grip’ as govt plans new revenue 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. 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. As Parliament is dissolved, the President will promulgate the ordinance under Article 93(1) of the Constitution, to be titled The Revenue Policy and Revenue Management Ordinance, 2025. Once the ordinance is promulgated, the government will establish the Revenue Management Division under the Ministry of Finance through a gazette notification. NBR tightens law to prevent abuse of bond law and facilities The government will formulate an appropriate organizational structure for the Revenue Management Department. The draft law mentioned that Government will give priority to a qualified government servant with experience in revenue collection work in the appointment of Secretary/Senior Secretary of the Revenue Management Department. According to the NBR officials, this clause will pave the way for the Deputy Commissioner and Assistant Commissioner (Land) to be eligible for getting any post in the priposed Revenue Management Division saying that these two posts also involved with revenue collection like the other NBR officials. It also said that Recruitment will be made from the Bangladesh Civil Service (Customs and Excise) and Bangladesh Civil Service (Tax) cadres for various posts in the Income Tax, Value Added Tax and Customs Law implementation related sub-divisions of the Revenue Management Division. The proposed law said that posts assigned by the Revenue Management Division in the field level implementation of the laws mentioned in the schedule shall be fillable from the officers working in the Bangladesh Civil Service (Tax), Bangladesh Civil Service (Customs and Excise) cadre and the field level employees of the Revenue Management Division. The Revenue Management Division shall be the controlling authority of the officers working in the Bangladesh Civil Service (Tax) and Bangladesh Civil Service (Customs and Excise) cadre. The Revenue Management Division shall perform all departmental activities related to the appointment, promotion, posting and discipline of all employees outside its cadre. The Income Tax Appeal and Customs and Value Added Tax Appeal Offices shall be under the administrative control of the Revenue Management Division. Scope of work of the Revenue  Management Division. The Revenue Management Division shall perform the following functions, namely:- (a) Enforcement of the laws and related rules as mentioned in the Schedule. (b) Proper implementation of international agreements relating to customs. (c) Proper implementation of international agreements relating to the avoidance of double taxation. (d) Human resource management of the Bangladesh Civil Service (Customs and Excise) and Bangladesh Civil Service (Tax) cadres. (e) Non-cadre human resource management of the Revenue Management Division and its subordinate departments. (f) Strengthening tax services, incentive programs and taking effective initiatives to bring everyone into the tax net with the aim of expanding the tax base. (g) Budget preparation, budget implementation and logistics related activities of the Revenue Management Division. (h) Formulation of procedures related to revenue management; (i) To undertake and implement necessary projects to increase the efficiency, effectiveness and dynamism of revenue management activities and to ensure transparency and accountability. (j) Supervision and management of subordinate offices. (k) To complete comprehensive automation activities quickly by establishing interconnection between the inter-wings of the Revenue Management Department and the Revenue Policy Department and all the related departments. (l) To coordinate with the Revenue Policy Department on various issues related to revenue policy formulation and implementation, to provide necessary training to develop skilled manpower and to conduct audit and intelligence activities; and (l) To perform any other duties assigned by the government. The draft further states that  once the Revenue Policy Division and Revenue Management Division are established, the current manpower of the National Board of Revenue will be transferred to the Revenue Management Division. From this manpower pool, necessary postings will be made to the Revenue Policy Division based on the committee’s recommendations. At the same time, the existing Internal Resources Division will be abolished, and its manpower will be vested in the Revenue Policy Division. The government will also appropriately divide the Internal Resources Division’s current functions between the Revenue Policy Division and other departments under the Finance Ministry. Both the Revenue Policy and Revenue Management Divisions will be authorised to frame rules, issue orders, and provide clarifications as necessary for smooth functioning.              

The National Board of Revenue (NBR) is contemplating to introduce a system to account its officers for skipping any business entity without enlisting that in the Value Added Tax (VAT) net. For this purpose, the existing VAT law has to be changed. The revenue collecting authority is thinking to implement this plan aiming to induct every business entity having Tk 50 lakh turnover early under the VAT net. It has reduced the amount from Tk 3 crore in last January. NBR lifts 5pc advance import tax on crude soybean and palm oil Currently, the NBR is under huge pressure from the International Monetary Fund (IMF) to improve the revenue collection to increase the tax-GDP ratio to 7.9 percent by next June, which is currently 7.4 percent. The IMF has stopped to release the 3rd and 4th tranches of the $4.7 billion loan programme  asking the government to fulfill all its conditions. It has asked the NBR to collect some Tk 2 lakh crore in the remaining months of the 2024-25 fiscal to meet the conditions for the last two trenches of the $4.7 billion loan. Talking to UNB a senior official of the NBR said this week that it might take time, but the system should be like that if any VAT officer goes to a place every shop of that area should come under the VAT net. NBR lifts suspension of Tax Tribunal member Shafiqul, cites no reason In this connection, he said that after reducing the VAT yearly turnover to Tk 50 lakh it means that any shop that sells Tk 15,000 per day is eligible to come under the VAT net. “So there is no need to ask any shop owner whether it sells upto this amount. Each and every shop has to be under VAT net, there should be combing drive in a specific area, big or small,” he said wishing anonymity. He also said that the NBR is thinking to implement this plan without any discrimination. “We are thinking to make changes in the respective law to hold responsible the specific official for any specific region who will skip any shop,” he added. Next budget to focus on removing non-tariff barriers: NBR Chairman He said that if any business entity is skipped, the official of that particular region will be liable. Responding to a query regarding shortage of manpower for this job, the NBR official said that they are aware about this. “If necessary, it will take time. But no business entity should be left out from this net. If needed the area can be a small Initiative,” he said. NBR chairman Md Abdur Rahman Khan recently  in a pre-budget meeting said that they had reduced the yearly turnover amount intensionally to bring all business entity under the VAT net. “We want to expand the VAT net, we have started our job, we want to ensure 100 percent coverage in a specific area, no one will be left out,” he told the meeting. The NBR has been able to collect some Tk 50,844 crore till February 2025 against the target of Tk Tk 69,103 crore. It had been able to collect Tk 53,426 crore till February 2024. It’s a 4.83% negative growth.  

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 Central Intelligence Cell (CIC) of the National Board of Revenue (NBR) has directed all banks and non-bank financial institutions to freeze the accounts of Asiatic Marketing Communications Limited, a leading advertising agency in the country. The CIC has issued formal letters to senior executives of financial institutions across the sector. “We’ve instructed banks and financial institutions to freeze all accounts of Asiatic Marketing Communications Limited,” a senior CIC official said, adding, “The company is under investigation for suspected tax evasion.” All legal channels to be pursued in hunt for laundered money: ACC Commissioner He said the probe will also examine whether Asiatic possesses undisclosed income or assets beyond those reported in its tax filings. Asiatic Marketing Communications Limited is the country’s oldest and largest communication agency.

The National Board of Revenue (NBR) has been grappling with delays in automating its bonded warehouse system, a long-anticipated reform aimed at boosting efficiency, curbing misuse, and enhancing revenue collection. Despite taking several initiatives and setting multiple deadlines over the years, NBR’s progress toward full automation remains sluggish and incomplete. “We are still struggling with the bond automation, we are yet to implement this fully,” NBR Chairman Md Abdur Rahman Khan told in a recent pre-budget meeting. NBR lifts 5pc advance import tax on crude soybean and palm oil In February 2022, then NBR Chairman Abu Hena Md Rahmatul Muneem announced plans to fully automate the bonded warehouse facility by 2023.   The objective was to prevent the abuse of the system, which had been a longstanding issue affecting revenue generation and industry competitiveness. To achieve goal, the NBR initiated the National Single Window project in 2017, aiming to integrate 39 agencies involved in customs-related activities into a unified electronic system. This system was designed to streamline procedures, reduce paperwork, and expedite trade operations. Initially slated for completion by 2019, the project faced significant delays, with authorities aiming for a 2023 completion. These setbacks raised concerns among stakeholders about the efficacy and timeliness of such automation efforts. NBR clears Joint Tax Commissioner Mesbah of misconduct charges One notable challenge in the automation drive has been resistance from stakeholders accustomed to manual processes. For instance, in December 2021, the NBR mandated the use of specific software for diplomatic bonded warehouses dealing with liquor imports to monitor and prevent illegal market activities. This move led to a strike by six private diplomatic bonded warehouses, resulting in a liquor shortage in the market. The warehouses resisted the software implementation, citing operational challenges, which highlighted the difficulties in transitioning from entrenched manual systems to automated ones. Moreover, the automation projects was hampered by external factors such as the COVID-19 pandemic, which disrupted timelines and resource allocations. A lack of coordination among various agencies and occasional indecisiveness further impeded progress. NBR officials said that inconsistencies and coordination lapses among agencies contribute to delays in implementing automation initiatives. The business community, particularly exporters, has expressed concerns over delays and harassment in availing bond facilities. In response, the NBR issued directives in November 2021 to expedite bond-related services, setting specific deadlines for processing applications and specifying required documents. While these measures aimed to reduce delays and enhance transparency, their effectiveness at the field level remains a subject of debate among industry stakeholders. In August 2024, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) met with the NBR to address ongoing issues related to customs and bonds. The BGMEA emphasised the need for simplified and expedited customs services to maintain competitiveness, especially in the face of global economic challenges. The NBR assured support and acknowledged the importance of creating a business-friendly environment to boost trade and investment. As of February 2023, the NBR planned to extend bonded warehouse privileges to more export-oriented sectors, contingent upon the completion of the bond automation project. Despite these efforts, the pace of automation has been slower than anticipated. Projects like the National Single Window and customs bond system automation have faced repeated delays, raising concerns about Bangladesh’s position in global logistics and ease of doing business rankings. The business community continues to advocate for expedited and transparent automation processes to enhance operational efficiency and competitiveness. NBR Chairman Abdur Rahman Khan said  his organisation is continuously trying to implement the bond automation. “While the system will be user friendly completely, then we will roll it out for all,” he said. While the NBR’s commitment to automating the bonded warehouse system is evident through various initiatives and projects, the journey has been fraught with challenges. NBR officials mentioned that Overcoming resistance to change, ensuring inter-agency coordination, and adhering to project timelines are critical to achieving the desired outcomes. “Successful automation is expected to not only streamline operations but also significantly reduce misuse, thereby enhancing revenue collection and supporting the growth of legitimate businesses in Bangladesh,” a senior NBR official told UNB over telephone.  

Importers who opened or amended letters of credit (LCs) for yarn on or before April 13 will be allowed to bring in cotton through land ports, the National Board of Revenue (NBR) said on Thursday. The clarification came amid confusion following the recent government ban on yarn imports through land ports. On April 13, the NBR suspended the import of yarn including cotton yarn through major land ports such as Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari. The move followed a request from the Bangladesh Textile Mills Association (BTMA) and recommendations from the Commerce Ministry. The decision aims to support local yarn producers and curb under-invoicing of imported yarn. The ban applies to all importers including 100% export-oriented industries and took effect immediately.    

The National Board of Revenue (NBR) exempted crude soybean oil and crude palm oil import from paying 5 percent advance tax at the import stage. To avail this facility, the importers have to take prior permission of the Commerce Ministry. All the conditions applicable to the import of goods as per the Import Policy Order 2021-2024 shall be complied with for availing this opportunity. EC to unveil electoral work plan by July: Election Commissioner All formalities of tax invoices and filings including accounting related to value added tax shall be complied with. This order shall come into effect immediately. The NBR in the order said that exemption has been granted from advance tax on crude soybean oil and crude palm oil imported by a registered manufacturing establishment. It said that if a commercial importer has entered into an agreement with a refinery that the importer can import the quantity of crude soybean oil and crude palm oil mentioned in the agreement with the prior approval of the Ministry of Commerce and in that case the commercial importer will be considered as an industrial establishment.

The National Board of Revenue has relieved Md Mesbah Uddin Khan, Joint Commissioner of Tax of the Central Tax Survey Region (Former Joint Commissioner of Tax, Tax Region-8, Dhaka) from the charges of 'misconduct'. In a notification signed by NBR Chairman Md Abdur Rahman Khan, it said Mesbah was served a showcause notice for his alleged misconduct on September 1 last year under Rule 3 (b) of the Government Servants (Discipline and Appeal) Rules, 2018. Later, the accused officer, Mesbah Uddin Khan, filed a written reply on September 9, 2024 requesting a personal hearing. A personal hearing was held on October 6 last year. As his verbal statement and written explanation during the hearing were deemed unsatisfactory, an investigation officer was appointed to conduct a departmental inquiry in the interest of ensuring justice. Election without trial of killers to be questionable: Asif Nazrul   The investigation office submitted the inquiry report on February 27 this year. After reviewing the investigation report and related documents and considering the overall situation, it was recommended to relieve Md Mesbah Uddin Khan from the charges of misconduct as per Rule 3(b) of the Government Servants (Discipline and Appeal) Rules, 2018. In this context, the notification says that, in accordance with the relevant rules, it has been decided to relieve the accused officer of the charges of 'misconduct' in the departmental case.

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Tuesday said in the upcoming national budget they will prioritise easing non-tariff barriers to facilitate business people. “We will try to ease the non-tariff barriers for you, we will remove all hurdles from your path,that is our main target, we are working on it,” he said at a pre-budget meeting held at the conference room of the Revenue Building in the capital. He said the primary goal of the budget for the next fiscal year will be creating a business-friendly environment for entrepreneurs. “The target is to enhance revenue collection, providing comfort to the business people through creating congenial atmosphere for them by pulling out all obstacles,” said the NBR chief. He pointed out the significant gap between the official tax rate and the effective rate in many cases, saying, “We will try to ease that.” Home Adviser says it’s people who support 5-year interim govt Abdur Rahman said that for the business entities that do not have any accounting system the NBR is planning to develop an app so that they could do their accounting properly. “They will preserve all sorts of records in that app which will ultimately help them to calculate their taxes including the VAT properly,” he said. The NBR chief said that the ultimate objective of this organisation is to increase revenue collection, widen the tax net and contain the revenue evasion, which is the main cause of revenue leakage. “We have to reduce our tax expenditure to zero,” he said. He said that those who are paying taxes in reduced rate and having tax exemption for a long time,  time has come for them to pay taxes in actual rates. “It is the time to keep aside the tax exemption culture, there will be some tax exemptions of course, but that will for the sake of encouraging new investments,” he said. Abdur Rahman also put emphasis on tariff rationalisation and said that it should be done. He said that there are some problems regarding tariff valuation and HS Code and the NBR will try to address these separately.