United News of Bangladesh

The interim government of Bangladesh has extended the deadline for submitting income tax returns for individual taxpayers for the second time for the 2025–26 tax year. According to an order issued by the National Board of Revenue (NBR), the return submission deadline has been extended from December 31, 2025 to January 31, 2026. It says the decision was taken in public interest under the powers conferred by Section 334 of the Income Tax Act, 2023, with prior approval from the government. Read more: NBR cuts customs duty on date imports ahead of Ramadan Earlier, the NBR had extended the original deadline once from November 30 to December 31, citing various difficulties faced by taxpayers. The latest extension aims to provide additional time to facilitate wider compliance and ease pressure on taxpayers. The NBR has urged eligible taxpayers to avail themselves of the extended time and submit their returns within the revised deadline to avoid any inconvenience. Read more: NBR extends VAT exemption on Metro Rail services

The National Board of Revenue (NBR) ended 2025 at the centre of Bangladesh’s growing fiscal challenge, struggling to raise higher revenue in a slowing economy while attempting long-promised reforms of a tax system criticised for inefficiency, discretion and a narrow base. The year unfolded as a mix of reform initiatives, technology-driven upgrades and aggressive policy moves, alongside deep-rooted structural weaknesses and unprecedented institutional unrest within the revenue administration. Together, these factors shaped a year of cautious transition, missed targets and unresolved debates over the future of tax reform. At a broader level, NBR’s revenue performance reflected the country’s macroeconomic stress. Sluggish imports caused by foreign exchange constraints, weak domestic demand and cautious private investment reduced traditional revenue flows. Despite repeated assurances of improved efficiency, revenue collection fell short of targets for much of the year. Bangladesh’s continued dependence on a small taxpayer base and import-stage taxes again proved risky. Customs duties and import-based VAT, long the strongest pillars of revenue, came under pressure as import controls were tightened to stabilise the balance of payments. Revenue mobilisation faced further strain in the first five months of FY2025–26. Between July and November, NBR collected about Tk 1.49 lakh crore, posting nearly 15 percent year-on-year growth but missing the target by around Tk 24,000 crore. Officials blamed weak import growth for the shortfall, which directly hit customs revenue. Income tax collection recorded double-digit growth but still lagged behind expectations due to limited compliance, a narrow tax base and slower business activity. VAT performed relatively better, supported by price adjustments and enforcement efforts, but also failed to meet targets. The shortfall comes as the government faces mounting pressure to finance rising expenditure, including debt servicing and social protection programmes, while cutting reliance on bank borrowing. Analysts warn that without faster progress on automation, administration reform and compliance, meeting the annual revenue target will remain difficult. One area of progress was taxpayer registration. The number of Taxpayer Identification Number holders rose to more than 10.2 million, up from around nine million a few years ago. However, only about four million taxpayers submitted income tax returns, underscoring the challenge of turning registration into actual compliance. VAT remained central to domestic revenue efforts. Although the NBR took steps to expand registration and promote electronic invoicing, progress was uneven. About 644,000 businesses are registered for VAT, a small fraction of the total number of operating enterprises. Traders continue to cite complexity, compliance costs and discretionary enforcement as major obstacles. Technology-based reforms became more visible during the year. Expanded use of ASYCUDA World, automated customs bond management and new digital modules at land ports were rolled out. However, taxpayers frequently reported system disruptions and ongoing manual intervention, highlighting gaps between policy design and practical implementation. Policy volatility also drew criticism. The NBR issued numerous exemptions and adjustments through statutory regulatory orders during the year, raising concerns about predictability, lobbying influence and unequal treatment across sectors. The most defining episode of 2025 was the unprecedented agitation by NBR officials following the promulgation of the Revenue Policy and Revenue Management Ordinance, 2025. Protests disrupted operations for nearly two months, slowed revenue collection and exposed internal tensions over reform ownership. Although full-scale strikes were later withdrawn, unease within the organisation has yet to fully subside. NBR enables election aspirants to file online tax returns Adding to the pressure, the government raised the NBR’s revenue target for FY2025–26 to around Tk 5.54 lakh crore from Tk 4.99 lakh crore at mid-year, despite ongoing economic headwinds. As 2025 ends, the NBR stands at a crossroads. While reform intent is evident and digital foundations are being laid, analysts argue that durable progress will require simpler laws, fewer exemptions, credible dispute resolution and a shift towards a partnership-based tax culture. Whether reform ambitions can translate into lasting institutional change remains one of Bangladesh’s most critical fiscal questions heading into 2026

The government has reduced customs duty on the import of dates by 40 percent ahead of the holy month of Ramadan, aiming to ensure adequate supply and keep prices within the purchasing capacity of general consumers. In a press release issued on Wednesday, the National Board of Revenue (NBR) said the existing customs duty on date imports has been lowered from 25 percent to 15 percent. The government issued a gazette notification on December 23, 2025 to this effect and it which will remain effective until March 31, 2026. The NBR noted that the decision has been taken to maintain market stability and prevent an unusual surge in prices during Ramadan, when demand for dates rises significantly as they are traditionally consumed to break the fast. In addition to the duty reduction, the NBR highlighted that amendments were made in the last budget to the provisions related to advance income tax (AIT) at the import stage. NBR chief calls for expanded VAT registration to cut reliance on imports Under the revised rules, the AIT applicable to the import of all fruits, including dates, has been reduced from 10 percent to 5 percent. Moreover, the 50 percent concession on advance income tax for date and fruit imports, which was introduced last year, has been retained for the current year as well, the revenue authority said.

The National Board of Revenue (NBR) has extended the value-added tax (VAT) exemption on Metro Rail services until June 30, 2026, aiming to promote the use of the environment-friendly mass transit system. According to an official release issued on Wednesday (December 24, 2025), the government earlier granted a VAT exemption on Metro Rail services. The existing exemption is scheduled to expire on December 31, 2025. Read more: Nagad brings metro rail card recharge facility for commuters In the greater public interest and following a recommendation from the Ministry of Road Transport and Bridges, the government decided to continue the VAT waiver for a further six months. A gazette notification to this effect was issued on December 23, 2025, extending the exemption up to June 30, 2026. The move is expected to help keep Metro Rail fares affordable for city dwellers while encouraging a shift from private vehicles to mass transit, thereby reducing traffic congestion and carbon emissions in the capital. Read more: Online recharge system launched for metro rail rapid, MRT Pass

The National Board of Revenue (NBR) has frozen the bank accounts of Faisal Karim Masud, who is suspected of attacking Sharif Osman Hadi. Hadi is the spokesperson of Inquilab Mancha and a probable independent candidate for the Dhaka-8 constituency. Read more: CID freezes Tk 3.28 crore of former Sirajganj-1 MP Shakil, his family Besides, the bank accounts of Masud’s IT firm, Apple Soft IT Limited, have also been frozen. An NBR source confirmed that letters instructing all banks to freeze the accounts of Faisal Karim Masud and his organisation were issued on Sunday morning. Masud is also a member of the Bangladesh Association of Software and Information Services (BASIS). Read more: What we know about at least one of Hadi's would-be assassins

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Tuesday (December 09, 2025) underscored the urgent need to expand the country’s VAT and income tax base to reduce reliance on import-based revenue, strengthen fiscal stability, and support Bangladesh’s development ambitions. “Development goals and essential public services cannot be delivered unless adequate revenue is mobilised,” he said at a “Meet the Press” event ahead of VAT Day and VAT Week held at the Revenue Building in the capital. He said Bangladesh’s progress and day-to-day administrative functions depend heavily on revenue collected by the state. Bangladesh relied overwhelmingly on import duties in the early years of independence, with nearly 90 percent of revenue collected at the import stage, he said. Read more: NBR to develop automated system linking return submission with banks: Chairman He said such a structure places the same tax burden on the rich and poor alike and is neither sustainable nor equitable. “Over time, VAT and income tax have emerged as the principal pillars of domestic resource mobilisation, with VAT alone contributing 38 percent of total revenue in the last fiscal year.” VAT collections grew by 22 percent in the July–November period, demonstrating significant potential for further expansion, said the NBR cheif. He expressed concern that only about 644,000 entities are registered for VAT, a figure far below the actual number of businesses operating across the country. “The authority aims to bring at least 100,000 new businesses under the VAT system during December.” He reiterated the need to establish a single VAT rate across the board and to enforce a fully functional input credit system at every stage of production and distribution. Read more: NBR uncovers Tk 9 crore revenue evasion by United Tobacco A unified rate, he said, would make automation easier and eliminate distortions that undermine fair competition. Khan highlighted a common misconception that businesses “pay” VAT. He said businesses merely collect VAT on behalf of the government, while the final burden ultimately falls on consumers. Distortions in compliance, he added, create an uneven playing field in the market. To ease compliance for small and cottage businesses, NBR is planning sector-specific VAT systems that will allow users to record receipts and payments and automatically generate VAT returns. Read more: How to Submit Zero Income Tax Return Online in Bangladesh He said NBR will bear all system development and maintenance costs, including hosting and cloud services, to support smaller businesses that cannot afford specialised software or consultants. Khan also emphasised ongoing efforts to modernise VAT and income tax audits. He said various intelligence units including VAT, customs, central, and tax intelligence agencies have strengthened their operations, allowing NBR to recover significant amounts of evaded revenue. Updated figures will be shared soon, he added. Khan acknowledged several challenges affecting revenue collection this year, including weak corporate tax receipts from the banking sector, reduced capital expenditure due to a contractionary budget, and slower implementation of development projects. Major business groups have also faced financial stress, he said. Read more: Railway exempted from submitting proof of income tax return filing Khan said Bangladesh’s tax-GDP ratio remains low, and more research is needed to identify why certain segments of the economy remain untaxed. As the country prepares for LDC graduation, import duties will inevitably decline due to global trade obligations, making a stronger domestic tax base essential, he added. He said the long-delayed, World Bank-funded automation project for NBR will soon begin, and the authority intends to automate all of its internal processes under the initiative. He highlighted the need to better utilise existing automated systems such as ASYCUDA World, which is used globally but has not been fully leveraged in Bangladesh. The NBR chairman also sought for cooperation from businesses and the media to help simplify tax laws, expand the tax base, strengthen compliance, and build a fairer and more efficient revenue system. Read more: LPG operators oppose govt’s VAT hike proposal

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Tuesday (December 09, 2025) said the revenue authority is developing an automated system that will integrate taxpayers’ annual return submission with banks. It will ease eliminate the need for individuals to collect multiple bank certificates from different branches, he said at a “Meet the Press” event held at the conference room of the Revenue Building in Sher-e-Bangla Nagar on the eve of VAT Day and VAT Week. The NBR chief explained that the system will automatically retrieve essential information from banks once a taxpayer enters their Taxpayer Identification Number (TIN) and National Identity Number (NID). This information includes the balance as of 30th June, the total profit earned throughout the year, the tax deducted at source on that profit, and the charges imposed by banks over the same period, he added. Read more: Over 2 million taxpayers file returns online in 5 months: NBR He said taxpayers who maintain several bank accounts currently have to visit each bank individually to collect these certificates, a process that often results in mistakes and creates undue hassle. “By automating the retrieval of this information, taxpayers will no longer need to run from one bank to another and inconsistencies in their submitted figures will be avoided,”he added. The NBR chairman said the system has been widely misunderstood and clarified that the revenue authority will not gain access to taxpayers’ personal or transactional information. He said that only the taxpayer will be able to view the automatically generated bank data while submitting their returns, and no tax official will have access to it. He further noted that no transaction-level information will be collected through this system. Read more: Income tax return submission deadline extended by one month Any request for detailed bank transactions will continue only under the existing legal framework during investigations backed by credible intelligence, which is a separate process entirely, he added. Khan said this new mechanism will prevent unnecessary complications such as reopening files due to discrepancies in bank-related declarations. He added that the initiative is progressing well although it could not be introduced this year. He expressed optimism that the system would be in place before next year, after strengthening NBR’s in-house IT workforce to connect securely with the digital systems of all banks. He called upon the media to help dispel misunderstandings and build public trust in the initiative, saying that their support is crucial in ensuring accurate communication. Read more: Railway exempted from submitting proof of income tax return filing He said greater transparency and efficiency would naturally boost tax collection once the system is implemented. The NBR chairman reaffirmed that the goal is to simplify the return-filing process, reduce the burden on taxpayers, and move towards a more modern and automated tax administration that supports the country’s development objectives.

Finance Adviser Dr Salehuddin Ahmed on Tuesday (November 18) said the International Monetary Fund (IMF) has expressed satisfaction with Bangladesh’s ongoing economic reforms although reiterated concerns over several structural challenges that require closer attention. “They said the situation is overall good but they are monitoring the challenges. We are working under a plan but they feel that taking some steps a little faster would bring better outcomes,” he told reporters after meetings of the Advisers Council Committee on Economic Affairs and the Committee on Government Purchase at the Secretariat. He noted that the IMF is particularly concerned about the speed of policy implementation especially surrounding interest rate adjustments. “Increasing the policy rate by the central bank cannot be done suddenly. Everyone knows that. We have to ensure supply-side improvements at the same time,” he said. Dr Salehuddin also mentioned that the IMF has raised issues related to the banking sector. “They have taken five banks under observation which they consider a major challenge,” he said, adding that the government needs to undertake tough reforms to strengthen financial governance. On revenue administration, the adviser said the IMF is satisfied with the current progress of the National Board of Revenue (NBR) but expects reforms to continue steadily. “The process has become principled but manpower restructuring and capacity enhancement will take time,” he said. Read more: Bangladesh’s reserves still remain above $31 billion after ACU payment He added that while it may not be possible to achieve a complete turnaround within the current government’s tenure substantial groundwork and structural preparations would be completed. “We may not reach the final conclusion but the logical framework and preparatory work will be done,” he assured. Responding to a question on whether the IMF has set any new conditions, Dr Salehuddin said no fresh conditions were imposed. “This was more like a consultation. They expressed satisfaction with the measures we have taken so far. The economic situation is largely under control and the remaining time will be used for consolidation,” he said. The $4.7 billion IMF loan programme, approved in January 2023, aims to support Bangladesh’s economic stability, strengthen fiscal reforms, and enhance resilience amid global economic pressures. Several tranches have already been disbursed while further installments remain tied to policy performance benchmarks and structural reforms. The IMF will delay disbursing the sixth tranche until the next national election and the new elected government assumes office. Read more: Bangladesh economy in ‘waiting vortex’; experts urge credible elections The interim government that assumed power on August 8, 2024 three days after the Awami League regime was ousted amid a mass uprising announced that the next general election would be held in February. Finance ministry officials said that theyare  expecting the releases of the sixth and the seventh tranches in June, 2026.   On June 23, the IMF approved the release of the fourth and fifth tranches amounting to $1.3 billion, taking the overall amount of disbursement to $3.6 billion. In June 2025, the IMF also increased the overall loan amount to $5.5 billion from $4.7 billion under the loan programme that began in 2023 under the AL regime in 2023 to meet the balance of payment shortage.   The progarmme period has also been extended by six months to January 27, 2027 from July 2026, following requests from Dhaka. The interim government has already reduced the balance of payment pressure. Driven by higher remittance and export earnings, the country’s gross foreign exchange reserves increased to $32 billion on October 16, the highest in 31 months. The latest IMF mission is also linked to the Article IV report, an annual consultations with its member countries on overall economy, on Bangladesh. Read more: Jamaat-e-Islami holds meeting with IMF on economy and tax system

Finance Adviser Dr Salehuddin Ahmed on Sunday said the International Monetary Fund (IMF) is continuing its review of Bangladesh’s progress under the ongoing loan programme and a final decision regarding the next installment is expected only after the formation of the next political government. “The IMF has acknowledged that the government has been working to address macroeconomic challenges and implement reforms. They have some recommendations, particularly on revenue generation. We agree that tax revenue remains low, and there are structural reasons for this,” Dr Ahmed said. Talking to reporters at Bangladesh Secretariat after holding a series of meetings, the adviser said the government has already undertaken necessary reforms and is consolidating the progress before the upcoming general election, scheduled for February 2026. He said tax compliance among citizens remains weak, while the temporary suspension of the new National Board of Revenue (NBR) for two months also had an impact on revenue collection. “We are working to resolve these issues.” According to the adviser, the IMF has also emphasised increasing expenditure in the social sectors, especially health, education and social protection. “On food security, we are performing reasonably well.” BGMEA briefs IMF on RMG risks, urges govt to prioritize FTAs to counter LDC graduation challenge Responding to a question on whether the government expects to receive the next IMF tranche during the tenure of the interim administration, Dr Ahmed said the focus now is to maintain stability and hand over a well-structured economic reform framework to the elected government. “We will consolidate the work done so far. Of course, we cannot complete everything. Major reforms such as tax restructuring, public sector pay commission review, and strengthening the banking sector will continue. These will be carried forward by the next government,” he said. The adviser said Bangladesh has already submitted relevant reports to the IMF, and a review mission will visit the country again early next year. “The IMF will review again around the election period and then decide on disbursement. We have no objection to this. A stable political government is needed for sustained reform.” Asked about recent remarks by the Bangladesh Bank Governor on certain policy proposals, Dr Ahmed declined to comment but said any major decision would be taken collectively by the government. “This is an internal matter of the Bangladesh government. It will go to the advisory council for consideration,” he said. In response to a question, the adviser said he is scheduled to hold final discussions with the IMF on November 15.  “I have already had a virtual meeting with them. They said they are very happy with the overall economic direction. They acknowledged the efforts we have made and are making.” IMF to probe ‘NPL data concealment’ in Bangladesh’s banking sector The adviser also informed that an independent committee comprising economists has been formed to recommend reforms in the tax system. He identified the banking sector as the most critical challenge in the economy. “Some reforms have already begun, and the rest will proceed gradually. These issues will also be handed over to the next government.” Responding to whether the sixth installment of the IMF loan will be released during the interim government’s tenure, Dr Salehuddin said the IMF will review progress again after the national election expected in February.   “They want to see how much the political government continues the reforms. That is important for them. So, after their review early next year, they will make a decision,” he said. The $4.7 billion IMF loan programme, approved in January 2023, aims to support Bangladesh’s economic stability, strengthen fiscal reforms, and enhance resilience amid global economic pressures. Several tranches have already been disbursed, while further installments remain tied to policy performance benchmarks and structural reforms. The IMF will delay disbursing the sixth tranche until the next national election and the new elected government assumes office. The interim government that assumed power on August 8, 2024 three days after the Awami League regime was ousted amid a mass uprising has announced that the next general election would be held in February. Finance ministry officials said that they were expecting the releases of the sixth and the seventh tranches in June 2026.  IMF-WB proposes unified debt management office in Dhaka to strengthen public debt governance On June 23, the IMF approved the release of the fourth and fifth tranches amounting to $1.3 billion, taking the overall amount of disbursement to $3.6 billion. In June 2025, the IMF also increased the overall loan amount to $5.5 billion from $4.7 billion under the loan programme that began in 2023 under the AL regime in 2023 to meet the balance of payment shortage.  The progarmme period has also been extended by six months to January 27, 2027 from July 2026, following requests from Dhaka. The interim government has already reduced the balance of payment pressure. Driven by higher remittance and export earnings, the country’s gross foreign exchange reserves increased to $32 billion on October 16, the highest in 31 months. The latest IMF mission is also linked to the Article IV report, an annual consultation with its member countries on overall economy, on Bangladesh.    

The National Board of Revenue (NBR) has recorded the highest-ever revenue collection in the first quarter of any fiscal year, collecting Tk 90,825 crore during July–September of FY2025–26. According to official data, the amount marks a significant 20.21 percent growth compared to the same period of FY2024–25, when the NBR collected Tk 75,554.78 crore. In the first quarter of FY2023–24, the revenue stood at Tk 76,068.43 crore, while it was Tk 68,635 crore in FY2022–23. The data shows that the NBR collected Tk 15,270 crore more in the first quarter of FY2025–26 compared to the corresponding period of the previous fiscal year. Among the three major segments, the value-added tax (VAT) from the domestic sector contributed the highest — Tk 34,819 crore — showing a robust 29.74 percent year-on-year growth. In comparison, collections from the same period stood at Tk 26,838.49 crore in FY2024–25, Tk 28,445.41 crore in FY2023–24, and Tk 24,546.65 crore in FY2022–23. NBR launches major customs and VAT overhaul to boost revenue collection Income tax and travel tax collections reached Tk 28,478 crore during the July–September quarter, up from Tk 24,080.82 crore a year earlier — marking an 18.26 percent growth. The figure was Tk 23,751.31 crore in FY2023–24 and Tk 21,016.20 crore in FY2022–23. Revenue from import and export activities totalled Tk 27,528 crore in the first quarter of the current fiscal year, up 11.74 percent from Tk 24,625.47 crore collected during the same period of FY2024–25. The NBR noted that revenue collections across all three key segments — domestic VAT, income and travel tax, and customs — hit record highs in the first quarter of FY2025–26. It attributed the strong performance to expanded tax coverage, improved compliance, anti-evasion measures and the recovery of previously evaded revenue. NBR sets up e-Return Help Desks in all tax zones The board appreciated its 'dedicated and hard-working officials' for their efforts in driving continued growth in national revenue mobilisation.