NBR aims to expand tax base thru’ digital transformation

National Board of Revenue (NBR) Chairman Md  Abdur Rahman Khan yesterday said the government’s key objectives are to build  trust with taxpayers, simplify the tax system, and expand the tax base  through full digitalization.

“The current budget has been prepared with priority on public interest and  maintaining affordability of essential commodities. Various duty and tax  adjustments have been made to ease pressure on consumers,” he said. 

The NBR chief made the remarks while speaking as the chief guest at a seminar  titled “Analysis of Finance Bill 2026-27”, organised by the Economic  Reporters Forum (ERF) in the capital.

Acknowledging global economic challenges arising from the COVID-19 pandemic,  the Russia-Ukraine war, and geopolitical instability in the Middle East,  Abdur Rahman Khan said the government has taken measures to support  production, create employment, and improve the ease of doing business.

Highlighting reforms in the value-added tax system, the NBR chief said a  simplified VAT mechanism is being introduced for small and marginal  businesses.

“Under the system, small traders will not need to maintain complex accounts  or undergo detailed audits.

They will be able to obtain instant online  registration and pay a fixed turnover tax,” he continued.

He further said the NBR is developing specialized software to facilitate easy  VAT return submission, similar to the existing e-TIN system for income tax  registration.

To prevent tax evasion, particularly in the tobacco sector, the chief guest  said that the NBR will introduce QR code-based verification on cigarette and  other tobacco product stamps. 

“Consumers will be able to verify tax payment using mobile phones,” he added. 

He also said informants providing evidence of tax evasion will be rewarded,  while offenders will face legal action.

The Chairman stated that about 4.5 million taxpayers currently submit income  tax returns online, and the NBR plans to bring all company and VAT returns  fully online from the next fiscal year. 

This will enable data-driven and risk-based auditing, he added.

He further clarified that no decision has been taken to increase taxes on  savings certificate profits, adding that the new system may facilitate  automatic tax refunds for small investors.

Regarding export-oriented industries, he said, the NBR has taken steps to  simplify compliance, including expansion of bond facilities, introduction of  an inter-commissionerate continuous bond system, simplification of Authorized  Economic Operator (AEO) procedures, and relaxation of audit requirements for  compliant firms.

The seminar was chaired by ERF President Doulot Akter Mala and moderated by  its General Secretary Abul Kashem.