The National Board of Revenue (NBR) has said its reform initiatives have produced positive results in revenue collection, with government revenue increasing by Tk23,020 crore in the first six months of the current fiscal year compared to the same period last year.
In a detailed briefing sent to Chief Adviser Muhammad Yunus on Sunday (25 January), the revenue authority attributed this to structural reforms in revenue management, digitalisation, measures to curb tax evasion and taxpayer-friendly initiatives.
According to the NBR, total revenue collection from July to December 2025 stood at Tk1,85,229 crore, marking a notable rise from the corresponding period of the previous fiscal year.
One of the major milestones of the reform process, the NBR said, is the decision to separate revenue policy from revenue administration.
The briefing noted that the issuance of the Revenue Policy and Revenue Management (Amendment) Ordinance, 2025 formally separated policy formulation from implementation.
The decision’s approval came at a meeting of the National Implementation Committee for Administrative Reforms (NICAR), chaired by the chief adviser, paving the way for long-awaited structural reforms within the NBR.
Major investment in digital revenue system
The NBR said that to fully digitise revenue management, a World Bank-funded project titled Strengthening Domestic Revenue Mobilisation Project (SDRMP) has been undertaken at a cost of nearly Tk1,000 crore. The project aims to modernise income tax, VAT and customs operations.
The introduction of e-returns, online payments, e-refunds, VAT smart invoices and risk-based audits has reduced taxpayer hassle, the NBR added.
Parliamentary approval mandatory for tax exemptions
To move away from tax exemptions, the government has formulated the Tax Expenditure Policy and Management Framework and published it in the official gazette, the NBR said.
Amendments to the Income Tax Act, Customs Act and VAT Act have withdrawn the NBR’s authority to grant tax exemptions, it added, mentioning that from now on, no tax exemption can be granted without parliamentary approval.
Customs and VAT
With the launch of the Bangladesh Single Window (BSW), certificates, licences and permits from 19 agencies are now being issued online.
So far around 900,000 certificates have been issued digitally, with most applications processed within one hour to one day, the NBR said.
In the VAT sector, a special registration campaign led to the issuance of 1,31,000 new VAT registrations in December 2025 alone, raising the total number of VAT-registered entities to 775,000.
Response to e-returns in income tax
Mandatory online income tax return submission has resulted in more than 34 lakh e-returns being filed so far, the NBR said.
An email-based OTP system for expatriate Bangladeshis has made overseas filing easier, with over 5,000 expatriate taxpayers already using the facility, it added.
The NBR stated that the introduction of a risk-based audit system has also made the audit selection process more transparent.
Duty and tax relief for business and public interest
The government has granted excise duty exemptions on air tickets and related services for Hajj pilgrims, reduced customs duty and advance income tax on date imports ahead of Ramadan, and provided duty-tax relief on essential commodities.
Additionally, customs duty on mobile phone imports has been reduced from 25% to 10%, resulting in an overall import duty reduction of up to 60%.
According to the NBR, the benefits of these reforms are already being reflected in higher revenue collection, increased taxpayer confidence and a more business-friendly environment.
The briefing noted that in the medium and long term, these reforms will play a crucial role in increasing the revenue-to-GDP ratio.
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