The National Board of Revenue (NBR) has launched a 10-year Medium- and Long-Term Revenue Strategy (MLTRS) for FY2025-26 to FY2034-35, aiming to strengthen Bangladesh’s domestic revenue mobilisation (DRM) through sustained reforms and enhanced institutional capacity.
While Bangladesh has made notable progress through comprehensive tax reforms, the strategy notes that further efforts are needed to support the nation’s goal of achieving upper middle-income status by 2031.
Reforms cover the entire tax system, including customs, VAT, and income tax, with a focus on regulatory, institutional, human, and voluntary compliance improvements.
In the income tax sector, the government introduced the Income Tax Act 2023, replacing the decades-old 1984 ordinance. The new law incorporates global best practices to simplify filing and curb evasion.
NBR has expanded its operations with 10 new tax zones, three specialised units, 220 new circles, and 40 range offices to bring more taxpayers under the net.
Despite these efforts, income tax remains the weakest link, contributing just 2.58% of GDP in FY2021-22, reports UNB.
To address this, NBR is accelerating automation with online return filing, e-TDS for corporates, online tax payments, audit verification through the Document Verification System (DVS), and real-time monitoring via the Automated Challan System (ACS). Office Management System (OMS) now digitally manages tax records, arrears, litigation, and registers.
On the customs side, the Customs Act 2023 replaces the outdated 1969 law, introducing a modern legal framework aligned with international standards. Key initiatives include the National Single Window (NSW) platform, set to be operational by 2026, and automated bonded warehouse management for export industries.
NBR is also developing the Automated Risk Management System (ARMS) and a Customs Strategic Plan (2024–2028) to improve staff training, data analytics, and infrastructure.
For VAT, NBR is tackling challenges such as multiple rates, cascading effects, and rebate complexities. The Integrated VAT Administration System (IVAS) is being upgraded and linked to company accounts, while Electronic Fiscal Devices (EFDs), the Sales Data Centre (SDC), and e-invoicing aim to improve transparency.
Annual VAT expenditure analysis and reviews of exemptions and SROs are enhancing accountability and expanding the tax base.
The strategy also emphasises fiscal management of tax expenditures, institutionalising expenditure tracking to reduce leakages and support better decision-making.
Through these initiatives, NBR aims not only to raise revenue but also to foster transparency, strengthen taxpayer services, and build a robust institutional framework to meet Bangladesh’s development goals.
