Govt sets to mandate bank payments for rents above Tk25,000
The government is set to require bank-based transactions for house rents exceeding Tk25,000 from the 2026-27 fiscal year, aiming to boost transparency and strengthen tax compliance in the housing sector.
Finance Ministry officials say landlords will have to receive rent through bank accounts. To ensure enforcement, a central monitoring unit will be established along with regional teams under the National Board of Revenue (NBR).
A senior official, speaking anonymously, noted that the move is intended to capture actual rental income. “Many landlords underreport earnings, often splitting payments between banks and cash, which make accurate tracking difficult,” he said.
The upcoming budget is likely to include measures to verify real rental income, especially in major cities. At the same time, the government plans to broaden the tax net by identifying eligible taxpayers who remain outside the system.
The NBR has already conducted field surveys from upazila to metropolitan levels to identify potential taxpayers across professions. Efforts will also be stepped up to curb VAT and corporate tax evasion, alongside expanding digital systems to improve compliance.
“There are still individuals and entities evading taxes. The goal is to bring them under accountability and remove unjustified exemptions,” the official added.
A similar policy introduced in FY2014-15 failed due to resistance and weak enforcement. Although it remained on paper, it was never effectively implemented. Authorities now aim to revive it with stricter oversight.
Meanwhile, housing costs have surged sharply. A report by the Consumers Association of Bangladesh (CAB) shows rents in Dhaka have risen nearly 400percent over the past 25 years-almost double the pace of essential goods.
CAB data indicates that about 27percent of renters spend nearly 30percent of their income on housing, 57percent spend around half, and 12percent allocate up to 75percent, highlighting mounting financial pressure.
Industry insiders say landlords typically raise rents annually by Tk500 to Tk3,000, regardless of economic conditions, worsening affordability for middle- and lower-income households.
The government has set an ambitious revenue target of Tk695,000 crore for FY2026-27, with Tk604,000 crore expected from the NBR, Tk25,000 crore from non-NBR taxes, and Tk66,000 crore from non-tax sources.
In the current fiscal year, NBR collections reached Tk250,624 crore between July and February-just under half of the annual target-raising concerns about a possible shortfall of Tk80,000-Tk100,000 crore.
This casts doubt on next year’s higher target, which would require nearly 50percent growth-something many analysts view as unrealistic. Still, NBR leaders remain optimistic.
To close the gap, the government plans to accelerate digitalisation, expand the tax base, improve administration, and increase non-tax revenues. Officials warn that without stronger revenue growth, rising expenditure will lead to greater reliance on borrowing.
According to the Centre for Policy Dialogue, only about 30,000 of Bangladesh’s 250,000 registered companies file tax returns. Tax evasion and exemptions cost the government an estimated Tk56,000 crore to Tk292,000 crore annually, with some evaders also accused of laundering money abroad.
