Economy
NBR Adopts Three-Pronged Approach for Revenue Growth
The National Board of Revenue (NBR) is implementing a comprehensive strategy to substantially increase revenue collection from domestic sources, focusing on digital transformation, tax net expansion, and administrative capacity enhancement.
According to an official document, the primary objective is to simplify and enhance transparency in tax payments, thereby improving taxpayer services to facilitate increased revenue collection by the NBR.
Major reform measures have been taken by the government, as outlined in the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Ministry.
The implementation of the VAT & Supplementary Duty Act 2012 in July 2019 is expected to significantly boost VAT and supplementary duty collection in the medium term, following initial setbacks and COVID-19-related challenges.
The enactment of the new Customs Act, replacing the Customs Act 1969, incorporates international best practices to streamline customs processes and facilitate custom duties collection.
Similarly, the new Income Tax Act aims to create a conducive environment for taxpayers, simplify income tax assessment and collection procedures, and promote domestic and foreign investment.
To support the implementation of the new VAT law, the NBR initiated the ‘VAT Online Project (VoP)’ in operation since 2013, enhancing automation measures such as online VAT registration, central registration system, and online return submission.
Additionally, electronic payment (e-payment) systems for customs duties, income tax, and VAT have been introduced to facilitate convenient and timely payments.
The government’s launch of the Automated Invoice Portal (A-Challan) aims to ensure real-time deposit of government funds, prevent fraudulent activities, and eliminate discrepancies in revenue collection.
Furthermore, various initiatives, including eTDS Environment for income tax processing, Electronic Fiscal Devices (EFD) for VAT collection, and mandatory use of NBR-prescribed VAT software for VAT-registered industries, have been implemented to enhance tax compliance and transparency.
The NBR plans to operationalize a risk management system to optimize import clearance processes, streamline bonded warehousing, and conduct a Time Release Study to improve customs clearance efficiency.
Efforts to expand the taxpayer base include making return submission mandatory for all TIN-holders and implementing measures such as Online National Single Window, Post Clearance Audit, and Advance Ruling to boost international trade dynamics.
Administrative expansion of the income tax department is also underway, along with the introduction of the Document Verification System (DVS) to enhance financial discipline and tax collection transparency.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
