The corporate income tax rate for manufacturers of refrigerators, air conditioners (AC), motorcycles and compressors has been doubled. Starting from the 2025-2026 fiscal year, the National Board of Revenue (NBR) will be able to impose an income tax of up to 20% on the producers of these products, said a notification issued in this regard on Tuesday. The NBR said that the revised tax rate will remain in effect until 2032 for these electronic appliances and motorcycle manufacturers. According to the notification, the new tax rate will be applicable from the 2025-2026 fiscal year and producers in these sectors will have to pay the increased tax on the income earned in the current fiscal year. The government is focusing on reducing reliance on both domestic and foreign debt, while also boosting revenue collection and capacity. As part of this effort, the decision to raise taxes on manufacturers of electronic goods and motorcycles has been made. After disgraceful 2024 ‘goat scandal’ NBR steps up efforts to curb graft In January 2023, the International Monetary Fund (IMF) approved a $4.7 billion loan for Bangladesh, subject to certain conditions. One of the key requirements was the implementation of significant reforms in the country’s tax system. The IMF had recommended a major overhaul to enhance revenue collection. As part of the ongoing fiscal year 2024-2025, the IMF had urged Bangladesh to raise an additional Tk 12,000 crore in revenue. It also advised the government to implement a coordinated strategy to reduce subsidies and settle arrears in the electricity and fertiliser sectors. Bangladesh currently has the lowest tax-to-GDP ratio globally, which, combined with extensive tax exemptions, has left the government grappling with financial deficits. For the 2024-2025 fiscal year, the government has provided Tk 163,000 crore in tax exemptions. The NBR began offering tax incentives to manufacturers of refrigerators, air conditioners, and motorcycles in July 2009. NBR to launch door-to-door campaign to boost VAT collection Initially, a 5% corporate income tax rate was applied for a 12-year period. Over time, these tax incentives were expanded. But, in the fiscal year 2020-2021, the tax on these products was increased to 10%. As part of the "Made in Bangladesh" initiative, the government has been providing such incentives to promote locally produced goods.

Forty-two luxurious vehicles, imported under duty-free privileges by former Awami League MPs, have been lying at Chattogram Port for the past five months, creating complications for the National Board of Revenue (NBR). The NBR has decided to auction the vehicles as per regulations, following the failure of the ex-MPs to clear the vehicles after the fall of the Awami League government. This move is expected to generate at least Tk 400 crore in additional revenue for the government. According to sources, these high-end vehicles have been parked in the port’s car shed since September 14 last year. Importers were supposed to clear them by October 14 but failed to do so, prompting the port authority to transfer the paperwork for 24 vehicles to the Chattogram Custom House for auction. The Chattogram Custom House has already requested the importers to pay customs duties totalling Tk 8.5 crore for 24 vehicles. But traders are concerned that the high duties might deter buyers. Budget 2024-25: Parliamentarians to lose provision for duty-free car import Chittagong Port Authority officials said the vehicles, imported by former MPs using duty-free privileges, remain unclaimed due to the MPs fleeing after the student-led movement that toppled the government. Deputy Commissioner of Chattogram Customs House Mohammad Saidul Islam said, “If the importers pay the required customs duties, the vehicles will be cleared. Otherwise, they will be auctioned.”

The National Board of Revenue (NBR) faced a chaotic time  in 2024 after one of its senior members became embroiled in a high-profile scandal over the purchase of a sacrificial goat worth Tk 15 lakh, exposing vast amounts of his illegal wealth. The year began on a routine note for the revenue authority, but the ‘goat scandal’ thrust the institution into controversy. Md Motiur Rahman, a former high-ranking NBR official, became the focus of public outrage and  investigations after his son, Mushfiqur Rahman Ifat, boasted on social media about purchasing the exorbitantly priced goat ahead of Eid-ul-Azha. Online VAT services to remain suspended for 96 hours: NBR The revelation sparked widespread scrutiny of Rahman’s wealth, prompting the Anti-Corruption Commission (ACC) to launch an inquiry into his and his family's financial dealings.  Investigators found evidence suggesting Rahman had engaged in insider trading by acquiring placement shares in multiple companies—a violation of service rules that prohibit government officials from speculative trading or investments conflicting with their duties. Rahman has denied any wrongdoing claiming that his and his family’s income sources are properly documented in tax filings. In the aftermath, Rahman was removed from his role as president of the NBR’s Customs, Excise, and VAT Appellate Tribunal and reassigned to the Internal Resources Division of the Finance Ministry.  He later applied for voluntary retirement which the government approved. The ACC investigation is ongoing, and some of Rahman’s assets have been seized after court orders.  NBR plans online tax reforms to simplify process for taxpayers The scandal reignited debates about corruption and ethical conduct in public service, underscoring the urgent need for stricter regulations to curb abuse of power. Post-Scandal Reforms and Investigations Following the fall of the Awami League regime through a mass uprising, the NBR intensified its efforts to combat corruption.  It is actively identifying and prosecuting government officials suspected of amassing illicit wealth. In collaboration with the ACC, the NBR is scrutinising public servants’ financial records to detect discrepancies between declared income and actual assets.  The Central Intelligence Cell (CIC) of NBR has launched inquiries into the financial dealings of prominent industrialists including Salman F Rahman, Vice-Chairman of Beximco Group; Nazrul Islam Mazumder, Chairman of Nassa Group; Muhammed Aziz Khan, Chairman of Summit Group; Ahmed Akbar Sobhan, Chairman of Bashundhara Group; and Obaidul Karim, Chairman of Orion Group. These investigations aim to uncover tax evasion and ensure compliance with the Income Tax Act, 2023, and the Money Laundering Prevention Act, 2012.  NBR to gradually rationalise 60 tariff lines by 2026 Earlier, the NBR started  similar probes against Saiful Alam Masud, Chairman of S Alam Group, and his family, signaling a broader crackdown on tax evasion among influential figures. NBR officials said the inquiries are based on confidential information and media reports, with legal action to follow if evidence of tax evasion is found. Digital Transformation and Revenue Performance The NBR has also streamlined tax filing by enhancing its online services.  Taxpayers can now submit returns through the NBR’s online portal, reducing the need for physical visits to tax offices.  Step-by-step guidelines and online support have been introduced to simplify the process, encourage compliance, and improve transparency. Despite these efforts, the NBR collected Tk 382,562 crore in the fiscal year 2023-24, a 15.4% increase from the previous year but falling short of its revised target by Tk 27,438 crore.  The original revenue target for FY24 was Tk 5,00,000 crore. Value Added Tax (VAT) collection saw the highest growth, increasing by 20% to over Tk 1.5 lakh crore.  Income tax collection rose by 15.6% to Tk 1,31,000 crore, while import tax collection grew by 8.72% to Tk 1,00,819 crore. Economists attributed the growth partly to high inflation which inflated commodity prices and boosted revenue collection.  However, they warned that achieving the FY25 revenue target of Tk 4.8 lakh crore—requiring a 26% effective growth rate—may prove challenging without significant policy adjustments.

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 import-level value-added tax (VAT) on edible oil has been reduced from 10 percent to 5 percent to maintain a steady supply in the market. The National Board of Revenue (NBR) issued a notification in this regard on Tuesday. Earlier, the NBR had issued exemption notifications to boost the supply of rice, potatoes, onions, eggs, edible oil and sugar in the market. Read: Govt to procure 55,000 MT soybean oil for OMS On October 17, 2024, to keep oil prices within the purchasing power of the general public, a 15 percent tax exemption was allowed at the local production level, while a 5 percent VAT was imposed at the local business level on the supply of refined and unrefined soybean and palm oil. As a result of this exemption, only a 5 percent VAT is currently applicable at the import level. The NBR says that the removal of the said VAT will help maintain edible oil prices at a manageable level in the market, ensuring that consumers do not face increased costs. This exemption on edible oil will remain effective till December 15, 2024.

The National Board of Revenue (NBR) is taking preparations to launch its drive against the corrupt government officials for restoring the pride of the public servants which has been demolished in the course of time. According to some NBR top level officials, the revenue collecting authority is working seriously regarding the issue as it got a go ahead signal from the highest level of the government. They said that whether the government officials accept or not, it is a dire reality that the image of the government officials in the last 15 years has been on the verge of destruction due to some corrupt public servants. “As we got the green signal from the top office of the country, it is the time to strike on the corrupt officials,” they said. According to NBR sources, the regime change due to the revolution of the students and mass people of the country a sentiment is brewing in the govt offices including the NBR to take stern action against all corrupt officials. Recently, in a press briefing NBR chairman Md Abdur Rahman Khan while responding to a question regarding the drive against all government officials including NBR replied that the revenue collecting authority is taking measures against the corrupt NBR and other government officials. “We are stepping forward gradually setting our priority,” he told. A senior official of the NBR while talking to UNB echoed the NBR chairman’s statement and said that to launch any drive against the corrupt government officials it should need a concrete base and documentary support, otherwise the move might be futile which would not bring any positive change in the society. Read: Shortfall in NBR’s revenue collection continues in first 4 months of FY25 Recently, the National Board of Revenue issued an order to make online filing of income tax returns (e-Return) mandatory for government employees under the jurisdiction of income tax circles located in Dhaka North, Dhaka South, Gazipur and Narayanganj City Corporation. The senior official mentioning the move of online return submission for the public servants said that this would be very much beneficial for the NBR to find out the corrupt officials very easily. “If this online submission continues for the next couple of years it would create a good database for the revenue collecting authority as this database is linked with integrated budget and accounting system (iBAS),” he said. The NBR official mentioned that with one click NBR would be able to get income and expenditure scenario of any government official along with that particular person’s assets. During the Awami League regime, a law titled "Public Service (Amendment) Bill-2023' was enacted making prior permission of the authorities concerned compulsory for arresting government employees in criminal cases related to performance of duties. Law enforcers will need prior permission from the government or the appointing authority to arrest employees of autonomous, legislative and local government bodies before the chargesheet is accepted by a court in criminal cases filed in connection with duty performance. Read more: 10.50 lakh complete registration for online tax payment so far: NBR The law also sought to make it mandatory for the autonomous, legislative and local government bodies to take clearance from the Finance Division over financial expenditures. The NBR chairman in the press briefing also told that the Central Intelligence Cell (CIC) is working to dig out all information regarding president of the National Board of Revenue's (NBR) Customs, Excise and VAT Appellate Tribunal Matiur Rahman, who faced serious controversy over his wealth. The controversy regarding Matiur Rahman's wealth surfaced after his son Mushfiqur Rahman Ifat posted a photo of a sacrificial goat on social media and claimed to have bought it for Tk 12 lakh. This raised questions about the income of this official at this grade (a grade-1) with a basic monthly salary of Tk 78,000. Later, social media saw photos of Ifat with cars of various brands, and the wealth including flats and resorts of Matiur in various places including Dhaka, Gazipur, and Narsingdhi.

The National Board of Revenue (NBR) is prioritizing the recovery of lost or foregone revenue, according to NBR Chairman Md Abdur Rahman Khan. He emphasized that bringing this revenue back into the national exchequer is the agency's primary focus. “It is actually our main job, and we are actively working in that direction,” said Khan during a press briefing at the NBR conference room on Wednesday. He reiterated the agency’s commitment to addressing the issue, noting that significant efforts are underway. Foregone revenue refers to the money an agency expects to collect but loses due to external factors or events. NBR confirms five-year tax exemption for Grameen Bank to end discrimination The NBR Chairman mentioned that the process of discussing and addressing lost revenue is handled through a forum that operates behind the scenes and is not visible to the public. “We are working in an integrated and coordinated manner,” Khan said, highlighting the collaborative approach NBR takes with other government bodies. He pointed out that the NBR is working closely with agencies such as the Bangladesh Financial Intelligence Unit (BFIU) and law enforcement agencies to address the issue. “You might not notice the process, but when results start becoming public, when the recovery process reaches a certain stage, you will be able to realize the impact,” Khan added, assuring that the NBR’s efforts will soon yield tangible outcomes.

National Board of Revenue on Tuesday issued an order to make online filing of income tax returns (e-Return) mandatory for government employees under the jurisdiction of income tax circles located in Dhaka North, Dhaka South, Gazipur and Narayanganj City Corporation, as well as sections of the private sector. Online filing of income tax returns has been made mandatory for working officers/employees of all scheduled banks, all mobile telecom service providers and some multinational companies namely Unilever Bangladesh Limited, British American Tobacco Bangladesh Company Limited, Marico Bangladesh Limited, Berger Paints Bangladesh Limited, Bata Shoe Company (Bangladesh) Limited, Nestlé Bangladesh Plc. The NBR has taken a move to simplify submission of income tax return and payment procedure online for the tax year 2024-2025. Online return filing system has been open for taxpayers since September 9. Individual taxpayers can easily prepare their returns and file them online using the National Board of Revenue website www.etaxnbr.gov.bd. NBR confirms five-year tax exemption for Grameen Bank to end discrimination From this system, taxpayers can pay taxes through internet banking, card payment (debit/credit card) and mobile banking and get the facility of downloading and printing copies of filed returns, receipts, income tax certificates, TIN certificates. Besides, anyone can download and print the e-Return filed for the previous year. The NBR has set up a call center to assist taxpayers with any issues related to e-Return. Since September 12 Taxpayers are getting immediate solution to e-Return queries by calling the call center on 09643 71 71 71 during office hours. Besides, taxpayers can get solutions to any problem related to e-Return in writing from the eTaxService option of www.etaxnbr.gov.bd. The e-Return Registration process has already been made more taxpayer friendly. A Biometric SIM registered with the national identity card of each taxpayer is required for successful registration in e-Return. To verify whether the mobile number used by the taxpayer is Biometrically registered with his National Identity Card, dial *16001#. Those who do not have a Biometric Registered SIM can collect a new SIM and perform the registration process through it. Already, the number of online income tax return filings using the e-Return option of the www.etaxnbr.gov.bd portal has crossed 1,00,000 (One Lakh).

The National Board of Revenue (NBR) has initiated a plan to digitize its tax audit selection process, replacing the long-standing manual method, to eliminate human interference and restore taxpayer confidence. The move comes in response to ongoing complaints from taxpayers who claim the existing manual system exposes them to unnecessary harassment. NBR Chairman Md Abdur Rahman Khan confirmed the development: “We have begun working on digitizing the selection process to ensure it is objective and transparent.” He acknowledged NBR's "image crisis" concerning how tax audit files are selected. "Taxpayers often complain that the manual selection process is subjective, and this has damaged trust in the system," he said. "Our goal is to eliminate any confusion by fully automating the audit selection process, free from human intervention." In line with the NBR's ongoing transition to a digital system, the authority has temporarily suspended the selection of new tax files for audits. Following the formation of the interim government, NBR's member of taxes (tax audit, intelligence and investigation), Md Alamgir Hossain, issued a directive instructing all field-level tax offices to halt new audit selections until further notice. The decision aims to address the complexities faced by both taxpayers and tax officials under the existing manual process. NBR to focus on out-of-court settlement of tax disputes to boost revenue Bangladesh continues to grapple with one of the lowest tax-to-GDP ratios in the South Asian region—just 7.3%. In contrast, neighboring countries like India (12%), Nepal (17.5%), and Bhutan (12.3%) have significantly higher ratios. Moreover, only 5.2% of Bangladesh's population are registered as taxpayers, a stark contrast to India’s 23.08%. Currently, 67% of the government’s revenue comes from indirect taxes. The NBR has acknowledged the need to shift this dependency toward direct taxes. The NBR chairman has said they are working to broaden the tax net in a way that is more convenient for taxpayers, encouraging compliance while reducing the burden of indirect taxation. The implementation of the Income Tax Act 2023 has introduced new audit guidelines that have raised concerns about potential increased bureaucracy and costs for taxpayers. Under the guidelines, taxpayers may face multiple stages of interrogation, which some fear could open the door to underhand dealings. To combat these concerns, the NBR has been developing specialized software, known as the "Risk Management Engine," which is designed to bring greater transparency to the tax audit process. The software will link with other government agencies to gather data and select tax files for audit based on risk factors, helping to detect tax evasion more effectively. Read more: How to file your Tax Returns in Bangladesh

Photos of former National Board of Revenue (NBR) official Matiur Rahman, recently at the center of corruption allegations, with Bangladesh Bank Governor Abdur Rouf Talukder have gone viral on social media, sparking widespread discussion. One viral photo shows the two men in Ihram during the Hajj pilgrimage, while another captures Matiur greeting Rouf with a bouquet of flowers at the governor's office in the central bank. Read more: Matiur removed from NBR post after goat purchase scandal Matiur Rahman was appointed as a director of Sonali Bank on February 1, 2022. At that time, Abdur Rouf Talukder was serving as the finance secretary. Some media outlets have questioned the Bangladesh Bank governor through the central bank’s spokesperson, Mezbaul Haque. The inquiry focused on the governor’s comments regarding Matiur's appointment as a director of Sonali Bank during his tenure as finance secretary and the allegations of anonymous stock market investments through Matiur. Responding to the media, Bangladesh Bank spokesperson Mezbaul Haque conveyed the governor's statement, asserting that the allegations are not true. Read more: Ex-NBR member Matiur removed from Sonali Bank board