NBR chairman outlines roadmap to achieve revenue target

The National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan has said the government will be able to meet its revenue targets in the next fiscal year despite providing significant tax and duty exemptions to businesses and taxpayers.

He said the revenue collection target would be achieved by preventing tax evasion and boosting business activity through measures aimed at reducing costs.

"The tax incentives and business-friendly measures introduced in the budget will help expand trade and commerce, which will ultimately increase revenue collection," he said at a seminar titled "Finance Bill 2027 Analysis" organised by the Economic Reporters' Forum (ERF) in Dhaka yesterday (14 June).

Infographic: TBS

He said more than 45 lakh taxpayers have submitted their income tax returns online so far in the current fiscal year, compared to 17 lakh last year.

The information of taxpayers who filed returns manually last year has also been added to the NBR database, giving the revenue authority access to data on all taxpayers, he added.

"There are good taxpayers in every sector, but there are also many who evade taxes on a large scale. In the same area, one landlord may pay a high amount of tax while another pays very little," he said.

He said taxpayers who underreport income would be identified through audits and steps would be taken across all sectors to prevent evasion and increase revenue.

The NBR chairman also highlighted a recent case where a bonded facility holder was found to have evaded around Tk200 crore in taxes.

He said the company imported raw materials under bond facilities but did not export any goods. When customs intelligence officials visited the warehouse on 4 June, they were denied entry. Later, with police assistance, officials inspected the warehouse and found no goods stored there, he said.

He said the NBR would take action against such tax evaders to recover lost revenue.

The chairman said the NBR has planned automated audits, greater transparency through automation and integration, and expansion of the tax net to raise revenue collection. "A large number of taxpayers will come under automated audits, which will help increase revenue significantly," he said.

He also said a QR code system would be introduced for tobacco product marketing to reduce tax evasion.

The measure, along with higher prices, could help increase revenue by Tk7,500 crore by curbing illegal cigarette trade, he added.

Rejecting criticism that the government has no roadmap to increase revenue, he said scientific audit systems were being introduced across sectors to improve collection. He also highlighted several business-friendly measures proposed in the budget.

Regarding savings certificates, he said no additional tax burden had been imposed. Rather, the proposed changes could reduce overall tax liabilities.

He also said the budget did not include any provision for legalising black money. He explained that the previous budget allowed sellers of land to disclose such assets, while the current proposal extended a similar opportunity to buyers. However, the final decision would be made through parliamentary discussion.

"The prime minister and finance minister have clearly instructed that no opportunity to legalise black money should be provided. Following that direction, NBR has not kept any such provision," he said.

The chairman said the proposed budget introduced unprecedented measures to create a more business-friendly environment through deregulation.

He said expanding bonded warehouse facilities had long been a demand of export-oriented businesses.

Under the new measures, exporters without their own bonded warehouses will be able to source raw materials from companies with bonded facilities, removing previous complications.

He said the move would benefit the country's backward linkage industries and strengthen local manufacturing capacity.

Previously, only selected sectors received bonded facilities, but now entrepreneurs from any sector can apply for bonded licences, he said.

He added that businesses unwilling to take bonded licences but interested in duty-free imports would be able to import raw materials against bank guarantees.

He also outlined reforms to the Authorised Economic Operator (AEO) system, which allows businesses faster customs clearance and reduced physical inspections.

He said many businesses were avoiding AEO applications because of the requirement to submit audit reports.

"As audit reports are not always available with taxpayers, the requirement has been relaxed to allow more businesses to benefit from AEO facilities," he said.

He said reforms in bonded management and trade facilitation would make investment and export activities easier.

The seminar was chaired by ERF President Doulot Akter Mala and moderated by its General Secretary Abul Kashem. Senior NBR officials also presented different aspects of the budget.