The National Board of Revenue (NBR) plans to introduce a legal provision allowing individual taxpayers to submit their income tax returns throughout the year, starting from the 2026-27 fiscal year, according to NBR Chairman Abdur Rahman Khan.
While a similar opportunity exists in the current fiscal year, it has been facilitated through repeated deadline extensions until March, with provisions for a further three-month extension via online applications.
Speaking at a pre-budget meeting held on Tuesday at the NBR headquarters, the chairman detailed a proposed tiered incentive structure for the new system.
“We are considering formalising this through law. Those who file their returns in the first quarter will receive incentives or rebates,” the NBR chairman stated.
He added that taxpayers filing in the second quarter would pay at regular rates, while the cost would increase in the third quarter and rise further in the final quarter. However, he did not specify whether these increased costs would constitute fines or other charges.
The meeting, which marked the commencement of pre-budget discussions for the upcoming fiscal year, included representatives from the Newspaper Owners’ Association of Bangladesh (NOAB) and the Association of Television Channel Owners (ATCO).
The chairman emphasised the need to expand the tax net, specifically highlighting the necessity for broader coverage in Value Added Tax (VAT).
Drawing a parallel with income tax, he noted that legal compulsions – such as requiring a Taxpayer’s Identification Number (TIN) or proof of return submission to access certain services – have significantly boosted numbers. Before 2014, there were fewer than 14 lakh TIN holders; today, that figure has reached 1.28 crore.
The NBR now aims to apply similar strategies to the VAT framework. The chairman observed that while VAT registrations have grown from approximately 5 lakh to 8 lakh following recent drives, the number should ideally be at least 80 lakhs.
“This year, the business community reported that 60 lakh shopkeepers conducted successful business with a turnover of approximately Tk2 lakh crore. Yet, that reflection is missing from our VAT collection. We will work extensively to expand the VAT net in this area,” the chairman said. In addition to structural reforms, the NBR is contemplating the introduction of wealth tax. The chairman also mentioned that the authorities are considering the imposition of taxes on inherited property located within City Corporation areas.
