Dev partners press govt for stricter tax steps: NBR

Staff Reporter:

Amid mounting external debt and shrinking fiscal room, development partners are urging the government to strengthen revenue generation through stricter taxation and reduced exemptions, according to National Board of Revenue (NBR) Chairman M Abdur Rahman.
Speaking at the ‘Meet-The-Business’ stakeholder engagement event held at the NBR Multipurpose Hall, the chairman said that international development partners are closely observing Bangladesh’s fiscal indicators – including its revenue efforts and debt-servicing capability.
Rahman noted that with Bangladesh’s external debt burden increasing and the demand for sustainable budget financing growing, the country now has few options other than boosting domestic revenue instead of repeatedly depending on foreign borrowing.
He mentioned that a proposal was recently brought forward seeking an extension of the previous facility on foreign loan interest payments, which expired

However, he explained that such decisions fall within the broader national budget framework and cannot be taken unilaterally by the NBR.
The chairman said Bangladesh’s persistently low tax-to-GDP ratio largely stems from a long tradition of granting tax exemptions – a practice spanning nearly fifty years. While these exemptions were initially introduced to support development priorities, the current economic realities now require a shift toward a more structured and equitable tax regime.
To move in that direction, the government this year introduced a Revenue and Tax Expenditure Policy and amended several key tax laws, including those concerning income tax and customs duties. Under the revised framework, neither the NBR nor government ministries can independently issue tax exemptions.
“From now on, only Parliament – the people’s direct representatives – will decide which sectors, programmes, or institutions may receive any form of tax exemption, and to what extent,” Rahman said.

Regarding requests from foreign lenders for exemptions on interest payments for loans they provided to Bangladesh, the NBR chief said that existing laws do not allow such waivers. “This issue will be referred to the next parliament for a conclusive decision,” he added.

Rahman underscored that Bangladesh must design tax policies that safeguard national interests, uphold fiscal discipline, and ensure long-term sustainability, while promoting accountability and transparency.

He said the government is now focusing on strengthening domestic resource mobilisation, rationalising tax expenditure, and undertaking long-term structural reforms to preserve macroeconomic stability.