The National Board of Revenue (NBR) is actively working to implement a fully automated system that would directly refund excess tax payments to taxpayers’ bank accounts, according to a senior NBR official. This initiative aims to transform Bangladesh’s current manual refund process, which operates under the Income Tax Ordinance, 1984, where refunds typically result from overpayment through TDS deductions, advance tax payments, or calculation errors.
Under the existing framework, taxpayers must submit either Form-IT-11Ga (for individuals) or Form-11Gha (for companies) along with supporting documents like TDS certificates and payment challans. These applications then undergo manual verification by tax circle officers, a process often criticised for bureaucratic delays that prompt many taxpayers to simply adjust overpayments against future liabilities rather than await refunds.
The proposed automated solution involves integrating taxpayer bank accounts with Bangladesh Bank, enabling direct refunds upon approval through the Integrated Tax Administration System (ITAS). This digital transformation would eliminate physical interventions, with tax officials reviewing claims through an interconnected system. “When fully automated without human intervention, genuine refunds can be processed seamlessly,” the official explained, emphasising this would address longstanding taxpayer grievances.
Highlighting the benefits, the NBR official noted that efficient refund mechanisms significantly boost taxpayer confidence and voluntary compliance while strengthening the national tax culture through transparency. The system could sustainably process legitimate refunds worth Tk500 crore without fiscal strain, even against current revenue earnings of Tk4 lakh.
Acknowledging current challenges, the official pointed to the system’s complexity that sometimes enables unethical practices, stressing the need for complementary awareness campaigns and institutional reforms. “We have to remove these obstacles,” he stated, expressing confidence that simplifying the process would make automated refunds viable and beneficial for Bangladesh’s taxation ecosystem.