Published: 03:48 PM, 16 June 2026
NBR aims to expand tax base thru digital transformation: Chairman
National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Saturday 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.
In one of the most significant reform announcements, the NBR chairman revealed plans for a simplified Value Added Tax (VAT) regime tailored specifically for small and marginal enterprises.
Under the proposed system, small entrepreneurs will no longer be required to navigate complicated VAT return procedures, audits and extensive documentation requirements. Instead, they will be able to secure instant online registration and pay a fixed turnover-based tax through a streamlined digital process.
“VAT registration will become as simple and instant as obtaining an e-TIN,” he said, adding that the NBR is also developing its own software platform to help small businesses submit VAT returns with minimal hassle.
In a major move against tax evasion, particularly in the tobacco sector, Rahman Khan announced that QR-code technology will be embedded in tax stamps affixed to cigarettes and other tobacco products. Consumers will be able to scan the codes using their mobile phones to verify whether taxes have been paid on a product.
In a groundbreaking step towards citizen-led enforcement, he said individuals who report tax evasion will be rewarded, while companies found guilty of avoiding taxes will face punitive action.
“Consumers who provide information on tax evasion will be rewarded, while the companies involved will face punitive action,” he declared. The NBR estimates that nearly 15 per cent of tobacco products currently remain outside the tax net. Officials believe that technology-based monitoring and verification systems could substantially increase revenue collection from the sector. Similar systems may eventually be introduced across a wider range of manufactured goods.
Highlighting the rapid expansion of digital tax services, the NBR chairman disclosed that more than 4.5 million taxpayers have already submitted their income tax returns online, marking a major shift towards paperless compliance.
From the next fiscal year, corporate tax returns and VAT returns are also expected to be fully integrated into online platforms, enabling the revenue authority to conduct sophisticated risk-based audits through large-scale data analytics and automated compliance monitoring. The seminar was chaired by ERF President Doulot Akter Mala and moderated by its General Secretary Abul Kashem.
