NBR expands digital tax system to boost compliance, cut discretion

FE Report
Chairman of the National Board of Revenue (NBR) Abdur Rahman Khan said that they have gradually been adopting information technology to improve compliance, expand the tax base and reduce human discretion in revenue administration.
"With digital data, we can analyse taxpayer behaviour and assess the likely impact of policy measures with greater accuracy," he said, adding that such capabilities were previously absent under manual systems.
He was speaking at a pre-budget seminar organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) at its auditorium in the city's Nilkhet area on Saturday evening.
The NBR chairman noted that despite increased tax collection efforts, the country continues to face large budget deficits, indicating structural inefficiencies and widespread non-compliance.
A key priority, he said, is to bring more taxpayers under the net through automation rather than manual enforcement.
The NBR has already made online return submission mandatory for all taxpayers, he said, adding that around 4.4 million returns have been filed digitally so far, which is expected to reach nearly 5.0 million by the end of the cycle.
The shift to e-filing is enabling the authority to build a comprehensive database for policy analysis and targeted enforcement.
The NBR chairman noted that digitalisation is enabling the authority to identify non-filers more efficiently. Automated systems can now generate lists of non-compliant taxpayers and issue notices without human intervention-something that was nearly impossible under the earlier paper-based process.
He said automation is also being introduced in audit selection to ensure fairness and reduce harassment. The NBR has begun using risk-based and randomised digital methods to select cases for audit, replacing discretionary practices.
The NBR is also working to link banking data with tax records, Mr Khan said, adding that the taxpayers will be able to import key financial information-such as account balances, interest income and tax deductions-directly into their returns, reducing errors and compliance costs.
Among other speakers, Chairman of the Seminar and Conference Committee and Past President of ICMAB Mahtab Uddin Ahmed delivered a welcome address.
The keynote papers were presented by Ranjan Kumar Bhowmik, FCMA, former member (Tax), NBR and Mashiur Rahaman, ACMA, First Secretary (VAT Policy & VAT Exemption), NBR; and Md. Mohiman, FCMA, CEO of MM & Co., Cost and Management Accountants.
President of ICMAB Kausar Alam, FCMA, delivered his presidential address. He emphasised the need to improve the tax-to-GDP ratio, broaden the tax base, ensure stability in the financial sector, and create a more conducive environment for both domestic and foreign investment to achieve a sustainable and inclusive growth-oriented budget.
A vote of thanks was delivered by Monjur Md. Shaiful Azam, FCMA, Secretary of the ICMAB.
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