The National Board of Revenue (NBR) has unveiled an ambitious digital transformation agenda aimed at rebuilding taxpayer trust, simplifying compliance and dramatically expanding Bangladesh’s tax base, as the government pushes ahead with sweeping fiscal reforms under the proposed FY2026�"27 budget.
Speaking at a seminar titled “Analysis of the Finance Bill 2026�"27” in the capital on Sunday, NBR Chairman Md Abdur Rahman Khan said the revenue authority is entering a new era of technology-driven taxation designed to make compliance easier, curb evasion and create a more business-friendly environment.
“Building trust with taxpayers, simplifying the tax system and expanding the tax net through full digitalisation are among our foremost priorities,” he said.
The seminar, organised by the Economic Reporters Forum (ERF), brought together policymakers, economists and business leaders to discuss the implications of the new budget and tax measures.
The NBR chief said the proposed budget was crafted with a strong focus on protecting ordinary citizens from inflationary pressures. Despite the government's revenue mobilisation needs, tax and duty relief have been provided in several sectors to ensure that consumers are not burdened by higher prices.
Rahman Khan acknowledged that businesses and industries continue to grapple with the lingering effects of the COVID-19 pandemic, the Russia-Ukraine conflict, turbulence in the Middle East and Bangladesh’s ongoing economic transition. Against this backdrop, he said, the government has introduced a package of measures to stimulate production, encourage investment, generate employment and improve the ease of doing business.
In one of the most significant reform announcements, the NBR chairman revealed plans for a simplified Value Added Tax (VAT) regime tailored specifically for small and marginal enterprises.
Under the proposed system, small entrepreneurs will no longer be required to navigate complicated VAT return procedures, audits and extensive documentation requirements. Instead, they will be able to secure instant online registration and pay a fixed turnover-based tax through a streamlined digital process.
“VAT registration will become as simple and instant as obtaining an e-TIN,” he said, adding that the NBR is also developing its own software platform to help small businesses submit VAT returns with minimal hassle.
In a major move against tax evasion, particularly in the tobacco sector, Rahman Khan announced that QR-code technology will be embedded in tax stamps affixed to cigarettes and other tobacco products. Consumers will be able to scan the codes using their mobile phones to verify whether taxes have been paid on a product.
In a groundbreaking step towards citizen-led enforcement, he said individuals who report tax evasion will be rewarded, while companies found guilty of avoiding taxes will face punitive action.
“Consumers who provide information on tax evasion will be rewarded, while the companies involved will face punitive action,” he declared.
The NBR estimates that nearly 15 per cent of tobacco products currently remain outside the tax net. Officials believe that technology-based monitoring and verification systems could substantially increase revenue collection from the sector. Similar systems may eventually be introduced across a wider range of manufactured goods.
Highlighting the rapid expansion of digital tax services, the NBR chairman disclosed that more than 4.5 million taxpayers have already submitted their income tax returns online, marking a major shift towards paperless compliance.
From the next fiscal year, corporate tax returns and VAT returns are also expected to be fully integrated into online platforms, enabling the revenue authority to conduct sophisticated risk-based audits through large-scale data analytics and automated compliance monitoring.
Rahman Khan also sought to dispel concerns over taxation on savings certificates, clarifying that no decision has been taken to increase taxes on profits earned from savings instruments. On the contrary, he said many small investors will benefit from automatic tax refund mechanisms under the new digital framework.
The seminar was chaired by ERF President Daulat Akter Mala and moderated by the organisation’s General Secretary Abul Kasem.
The reforms signal what could become one of the most far-reaching overhauls of Bangladesh’s tax administration in decades, as authorities seek to modernise revenue collection, reduce leakages and create a transparent, technology-driven tax ecosystem capable of supporting the country’s next phase of economic growth.
