NBR mulls integrating wealth tax with online return

DOULOT AKTER MALA | Published: April 27, 2026 23:33:39

The government is considering integrating the upcoming wealth tax with the online tax return system to automatically capture individuals' asset information, aiming to reduce compliance burdens and eliminate manual assessments.
Officials say financial assets, such as cash holdings and bank deposits, will be directly reflected in taxpayers' online returns through system integration.
Immovable assets, on the other hand, will be assessed based on mouza values set nationwide.
The wealth tax is likely to be introduced in the upcoming budget for the next fiscal year.
A senior official of the National Board of Revenue (NBR) says the new system will not impose an excessive burden on taxpayers as the total tax liability, including both income tax and wealth tax, will be capped at one-third of an individual's annual income.
"There will be no separate manual assessment for wealth tax, which often leads to harassment," the official says.
"The tax authorities may choose between an online valuation system and a predefined valuation method for assessment."
Under the planned framework, rental properties may be assessed based on a multiple of rental income, while residential properties will be valued based on declared construction costs.
Market value is unlikely to be directly used in determining tax liabilities.
Currently, the highest income tax rate stands at 25 per cent.
Bangladesh abolished the Wealth Tax Act of 1963 in 1999 due to persistent valuation complexities.
The government later introduced a wealth surcharge as an alternative mechanism.
Tax experts, however, have raised concerns about reintroducing wealth tax without addressing structural limitations.
Snehasish Barua, managing director of SMAC Advisory Services Limited, says such a move could pose significant economic and administrative challenges.
"Determining the fair value of illiquid assets often leads to prolonged disputes, increasing both compliance costs for taxpayers and administrative burdens for the NBR," he says.
He adds that replacing the existing surcharge with a capped wealth tax could rebalance the tax burden.
"It may reduce liabilities for individuals with both high income and substantial assets, while ensuring that asset-rich but low-income individuals are not overburdened, as their tax obligations would remain linked to their income capacity."
Barua also highlights a major structural gap - the lack of interoperability among national asset databases.
"Without integrated asset registries, implementation will be difficult," he notes.
"A poorly designed system could force corporate sponsors, shareholders, and investors to liquidate assets, particularly equities, to meet tax obligations."
Individuals holding illiquid assets -- such as inherited homes in high-value areas like Gulshan or Dhanmondi, or shares in early-stage private businesses - may struggle to pay taxes based on assessed values without sufficient cash flow, he warns.
"Before reintroducing a policy that was scrapped in 1999, policymakers should carefully consider past lessons and global trends," Barua says.
"Sustainable revenue mobilisation lies in improving data systems, reducing evasion, and encouraging productive reinvestment of wealth in the economy."
Former income tax member Dr Syed Aminul Karim says wealth tax could generate an additional Tk 100 billion in a year if the government can frame a proper valuation system.
Initially, the NBR can start valuation in posh areas like Gulshan, Banani, and Dhanmondi, where many well-off are paying taxes on the value of the properties inherited in the Pakistan era, he says, suggesting abolishing the wealth surcharge.
According to available data, the NBR collected Tk 2.96 billion in surcharge revenue until February of the current fiscal year.
In FY23, some 50,053 taxpayers paid Tk 6.95 billion in surcharge.
In FY22, a total of 14,854 taxpayers contributed Tk 6.26 billion, while in the previous fiscal year, some 14,919 taxpayers paid Tk 5.99 billion.
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