Govt to engage DCs to digitise cash transactions, boost revenue 

The government is set to involve deputy commissioners (DCs) in a renewed push to boost revenue collection by bringing cash-based transactions into digital and banking channels, officials said.

The move will be a key agenda item at the DCs Conference 2026, which begins tomorrow (3 May) at Osmani Memorial Auditorium in the capital.

According to sources at the Cabinet Division, DCs will receive directives to encourage individuals and businesses at the district level to adopt formal transaction methods.

Officials said professionals and service providers – including healthcare practitioners, lawyers, corporate entities, and diagnostic centres – will be urged to use point-of-sale (POS) machines and banking channels. House rent payments and other routine transactions will also be brought under digital systems through awareness and enforcement measures.

DCs will also work to bring transactions at educational institutions, Bangladesh Road Transport Authority offices, and passport offices under formal financial channels.

The four-day conference will include discussions on 498 proposals, with revenue mobilisation among the top 20 priorities. Until now, efforts to expand digital financial inclusion have largely been led by Bangladesh Bank, alongside policy measures from the National Board of Revenue (NBR) aimed at discouraging cash transactions.

Under the new initiative, DCs will identify businesses and institutions in their jurisdictions that already have access to banking or POS facilities and ensure their transactions are conducted through formal channels. Additional sectors may also be brought under the framework following discussions at the conference.

Described the initiative as timely and necessary, Fahmida Khatun, executive director of the Centre for Policy Dialogue, told The Business Standard, "If transactions are conducted through formal channels, it becomes easier to assess actual income levels." 

Many individuals and businesses at the district level have taxable income but remain outside the tax net, while others underreport earnings. Ensuring formal transactions can reduce evasion and expand the tax base, she said. 

Fahmida, however, noted that fear of taxation remains a barrier for many outside the tax net, stressing the need for awareness campaigns by both district administrations and revenue officials to reassure citizens.

Despite repeated efforts by the NBR, the number of effective taxpayers has not increased significantly over the years. Although nearly one crore citizens submit income tax returns, only around 35 lakh actually pay taxes. An NBR survey estimates that about four crore people in Bangladesh are eligible to pay taxes.

Speaking at a recent event in Dhaka, Commerce Minister Khandaker Abdul Muktadir said expanding the tax base is essential for ensuring fiscal discipline, adding that reforms will become clearer in the upcoming budget.

In the first nine months of 2025-26 fiscal year, the NBR recorded a deficit of nearly Tk98,000 crore – the highest in the country's history – with collections falling far short of the target.

The government has set a revised revenue target of Tk5.88 lakh crore for the current fiscal year and plans to raise it to Tk6.95 lakh crore in FY2026-27, aiming to increase both tax and non-tax revenues through structural reforms and improved compliance.