Dhaka: Chairman of the National Board of Revenue (NBR) Md Abdur Rahman Khan on Tuesday underscored the need for a decisive transition to full digitisation, stating that a modern, technology-driven revenue administration is essential to enhance efficiency, transparency, and taxpayer services. He highlighted the launch of large-value corporate tax, VAT, and TDS payments through mobile financial services as a significant advancement in modernising revenue collection management.
According to United News of Bangladesh, the NBR chairman, at the inauguration of digital corporate tax and VAT payments via bKash, noted that two successful real-time transactions had already been completed, demonstrating the system’s capability to handle high-value payments securely and efficiently. He emphasized the advantages of digital transactions, including real-time settlement, accuracy, transparency, and reduced risk.
While individual taxpayers have long been able to make smaller payments through mobile financial services or card-based systems, corporate tax payments are often very large, sometimes ranging from Tk 100 crore to Tk 400 crore or more, the NBR chief said. Enabling such payments through digital wallets and merchant accounts, he explained, would significantly ease compliance for large taxpayers while strengthening revenue monitoring.
The NBR chairman stated that the platform is open to all licensed mobile financial service providers, such as Nagad, Rocket, CellFin, and Upay, and expressed hope that more operators would actively facilitate large-value tax transactions. He assured that there are no regulatory barriers from Bangladesh Bank or the Ministry of Finance concerning this initiative.
Emphasising the broader benefits of digital payments, Khan noted that moving away from cash would drastically reduce risks associated with carrying large sums of money, including theft, fraud, and violent crime. He highlighted the economic cost of cash usage, noting that Bangladesh spends approximately Tk 20,000 crore each year on printing currency, an expense ultimately borne by the public. Reducing cash transactions through digitisation, he said, would help lower this cost.
A central pillar of the NBR’s digitisation strategy is strengthening the electronic Tax Deducted at Source (e-TDS) system. By digitally capturing withholding tax data from banks, service providers, and government entities, the NBR aims to close long-standing gaps between deducted tax and actual tax liabilities. Khan explained that in many cases, individuals pay tax at source at lower rates, while their applicable marginal tax rate may be higher. By integrating e-TDS and banking systems, the government can legally collect the additional tax due.
The NBR plans to link all banking systems with online income tax returns to auto-fill key information, reducing errors and scope for under-reporting. The chairman reiterated the need to phase out manual challans and paper-based processes, arguing that partial digitisation has created serious inefficiencies. He expressed concern that some revenues are still being deposited using outdated codes, hindering real-time reporting.
Outlining upcoming reforms, Khan announced that the NBR is working to enable bulk withholding tax payments through automated sub-challans and plans to introduce a common software solution for small VAT-registered businesses. He stressed that VAT is not borne by businesses but collected from consumers on behalf of the government, and digitisation will streamline this responsibility.
He concluded by advocating for the abolition of pay orders and crossed cheques for tax payments, citing modern digital payment channels as superior alternatives. Full digitisation of revenue collection, he stated, would reduce tax evasion, eliminate fake challans, strengthen governance, and significantly improve Bangladesh’s tax-to-GDP ratio. “With collective effort, we can build a transparent, efficient, and technology-driven revenue system that benefits both taxpayers and the state,” he added.