Business Report :
The National Board of Revenue (NBR) has set a six-month target to significantly broaden its tax base, aiming to reduce the disproportionate burden on the country’s existing taxpayers.
“We have fixed a target of six months to widen the tax net, focusing on increasing the number of taxpayers. This will be our priority,” a senior NBR official said.
The official emphasized that while a substantial portion of revenue is currently generated from a relatively small pool of existing taxpayers, a large number of eligible individuals and businesses remain outside the tax net.
“We have initiated a drive to bring these untapped taxpayers into the system,” he added.
Currently, 67 per cent of Bangladesh’s revenue comes from indirect taxes, such as customs duties and Value Added Tax (VAT), with the remaining 33 per cent from direct taxes, primarily income tax. The country’s tax-to-GDP ratio is just 7.3 per cent, trailing behind neighboring countries like India (12 per cent), Nepal (17.5 per cent), Bhutan (12.3 per cent), and Pakistan (7.5 per cent).
“We must expand the tax net; otherwise, existing taxpayers will feel discouraged from continuing to pay taxes,” the NBR official said.
This initiative follows a directive from Finance and Commerce Adviser Dr. Salehuddin Ahmed, who, during a visit to the NBR on August 27, urged the board to take decisive steps to improve the tax-to-GDP ratio. “We cannot progress by continually relying on loans from others,” Dr. Salehuddin said.
An official document highlights a recent collaboration between the NBR and the Bangladesh Road Transport Authority (BRTA), which has enabled system integration for data exchange, accuracy verification, and detection of tax delinquencies. This partnership has been instrumental in identifying new taxpayers and recovering arrears.