National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan announced on Sunday that the government will focus on a business-friendly tax structure in the upcoming national budget, aiming to balance revenue generation with a supportive investment climate.
Speaking at a pre-budget consultative meeting for the 2026-27 fiscal year at the NBR office, Abdur Rahman Khan said the board plans significant changes to the VAT Act to simplify compliance.
The meeting included representatives from key trade bodies such as the American Chamber of Commerce in Bangladesh (AmCham), Bangladesh China Chamber of Commerce and Industry (BCCCI), India-Bangladesh Chamber of Commerce and Industry (IBCCI), and Bangladesh Women Chamber of Commerce and Industry (BWCCI).
From the next fiscal year, submission of online VAT returns will be mandatory for all registered businesses.
“Physical visits to VAT offices will no longer be required. All processes, from registration to return filing, can be completed online,” the NBR chairman said, adding that amendments to laws and regulations are underway to ensure a smooth digital transition.
To support small businesses, NBR is developing dedicated software for SMEs, allowing simple receipt and payment entries to automatically generate VAT returns.
Abdur Rahman Khan also mentioned ongoing studies on differential VAT rates for the service sector to ensure fairness across industries.
On tax refunds, the NBR plans to introduce an automated system that will directly credit excess payments to taxpayers’ bank accounts, replacing cumbersome manual procedures.
Business leaders at the meeting proposed measures to strengthen economic stability, modernise Customs, and support women entrepreneurs. BWCCI recommended raising the minimum tax-free income for women to Tk4.5 lakh and implementing policies tailored to female business owners.
Highlighting progress, the NBR chairman noted VAT registrations increased from 5 lakh to 8 lakh since his tenure began.
He reaffirmed the NBR’s commitment to creating a simplified, transparent, and digital-first tax system that supports national economic growth.
