Bangladesh stands at a critical moment in its economic journey. As the country prepares for the challenges of LDC graduation and aspires to become a higher-middle-income economy, strengthening domestic revenue mobilisation has become increasingly important. However, Bangladesh’s revenue challenge is not merely an administrative issue; it is fundamentally linked to governance, transparency, trust, and the broader formalisation of the economy. In this context, digital accounting can play a transformative role in building a modern, transparent, and efficient revenue system.
One of Bangladesh’s major economic weaknesses remains its persistently low tax-to-GDP ratio. Although the number of Taxpayer Identification Number (TIN) holders has increased significantly over the years, effective tax compliance remains limited. A large portion of economic activity still operates outside proper documentation and reporting systems. Consequently, the country continues to rely heavily on indirect taxation, while direct tax collection remains comparatively weak.
Digital accounting offers a practical solution to many of these challenges. Through automated recordkeeping, real-time data capture, e-invoicing, cloud-based reporting, and integrated financial systems, businesses can maintain more accurate and transparent financial information. At the same time, tax authorities can monitor compliance more effectively, reduce opportunities for tax evasion, and improve the overall efficiency of revenue administration.
The relationship between digital accounting and revenue mobilisation is very direct. Better accounting systems strengthen compliance, while stronger compliance contributes to sustainable revenue growth. Businesses adopting digital accounting systems also benefit through improved financial discipline, operational efficiency, productivity, and credibility. Reliable financial reporting improves access to institutional finance, especially for small and medium enterprises (SMEs), as banks and investors place greater confidence in professionally maintained and audited accounts.
However, digitalisation alone will not solve Bangladesh’s revenue challenges. One of the country’s biggest weaknesses is the lack of integration among institutions and databases. The different wings of the National Board of Revenue (NBR), including VAT, customs, and income tax, still operate largely in isolation. Information sharing between agencies remains limited, while many digitalisation projects have been implemented in fragmented ways without creating a fully integrated ecosystem.
For digital accounting to succeed, Bangladesh must build a comprehensive Digital Public Infrastructure (DPI) where financial, taxation, banking, national identity, and business registration systems are interconnected. A model based on “one citizen, one digital identity, one digital wallet” can significantly improve transparency, traceability, and service delivery. Integrated systems linking NID, TIN, BIN, banking data, and accounting platforms would reduce discretionary practices and simplify compliance for taxpayers.
At the same time, businesses must receive incentives to adopt digital accounting practices. SMEs often hesitate to formalise because of compliance costs, lack of expertise, and fear of excessive taxation. The government should therefore consider tax rebates, reduced compliance burdens, subsidies for accounting software, and simplified tax procedures for businesses maintaining professionally audited digital accounts. Temporary support mechanisms could encourage more enterprises to enter the formal economy voluntarily.
Chartered accountants can play a particularly important role in this transformation. As trusted financial professionals, they can help businesses integrate with digital tax administration systems, adopt proper accounting standards, and strengthen financial transparency. Their practical understanding of business operations and taxation also makes them valuable partners in policy formulation and implementation.
Nevertheless, sustainable revenue mobilisation ultimately depends on public trust. Citizens are more willing to pay taxes when they can clearly see that public money is being utilised efficiently for education, healthcare, infrastructure, and social protection. Tax collection cannot succeed through enforcement alone; it must be supported by accountability, transparency, and confidence in public institutions.
Bangladesh must therefore move toward a new governance culture where taxpayers feel connected to the development process. Digital systems can help reduce corruption, minimise human intervention, and create greater accountability in public financial management. But technology must be accompanied by institutional reform, policy consistency, and political commitment.
The country also needs a more business-friendly environment that encourages entrepreneurship, investment, and industrial growth. Revenue policies should not focus solely on increasing tax collection; they should support productive economic activities that expand the tax base naturally over time. Sustainable revenue growth can only occur when industries expand, employment rises, and more people participate in the formal economy.
Digital accounting should therefore be viewed not simply as a technical reform, but as part of a broader national transformation toward transparency, formalisation, and sustainable economic development. With stronger institutions, integrated digital systems, supportive policies, and greater accountability, Bangladesh can build a modern revenue system capable of supporting its long-term economic aspirations.
The writer is a journalist and columnist
