NBR aims to expand tax base thru digital transformation: Chairman

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Sunday said the government is focusing on building trust among taxpayers, simplifying tax procedures and expanding the tax base through comprehensive digital transformation.

“The budget has prioritised public welfare and affordability of essential commodities. We have adjusted duties and taxes in several areas to ease the burden on consumers,” he said.

He made the remarks while addressing a seminar titled “Analysis of Finance Bill 2026-27” as chief guest. The event was organised by the Economic Reporters Forum (ERF) in the capital.

Referring to the lingering effects of the COVID-19 pandemic, the Russia-Ukraine war and ongoing geopolitical tensions in the Middle East, the NBR chairman said the government has adopted measures to boost production, generate employment and improve the business climate.

Highlighting reforms in the value-added tax (VAT) system, he said the NBR is introducing a simplified VAT mechanism for small and marginal businesses.

“Small traders will no longer need to maintain complex accounts or face detailed audits. They will be able to obtain instant online registration and pay a fixed turnover tax,” he said.

He added that the revenue authority is developing dedicated software to simplify VAT return submissions, similar to the existing e-TIN platform used for income tax registration.

To curb tax evasion, particularly in the tobacco sector, the NBR plans to introduce QR code-based verification on cigarette and other tobacco product stamps.

“Consumers will be able to verify tax payments through their mobile phones,” he said.

Abdur Rahman Khan also announced rewards for individuals who provide evidence of tax evasion, while offenders will face legal action.

He said around 4.5 million taxpayers currently submit their income tax returns online and that all company and VAT returns are expected to move fully online from the next fiscal year.

The transition will pave the way for data-driven, risk-based auditing, making tax administration more efficient and transparent, he added.

The NBR chairman clarified that the government has not decided to increase taxes on profits from savings certificates. He noted that the new system may also facilitate automatic tax refunds for small investors.

On export-oriented industries, he said the NBR has taken several steps to ease compliance requirements. These include expanding bond facilities, introducing an inter-commissionerate continuous bond system, simplifying Authorised Economic Operator (AEO) procedures and relaxing audit requirements for compliant businesses.

ERF President Doulot Akter Mala chaired the seminar, while General Secretary Abul Kashem moderated the discussion.