Year-Round e-Return Rollout: NBR Expands Online Tax Filing with Incentive-Based Model
Taxpayers will now be able to submit income tax returns online throughout the year. However, those who file within the stipulated time will receive certain special benefits. National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan made this announcement on Tuesday, March 31, at a pre-budget discussion held at the NBR headquarters in Agargaon, Dhaka.
The discussion, held at the NBR conference room, was organized with two journalists’ organizations—the Newspaper Owners’ Association of Bangladesh (NOAB) and the Association of Television Channel Owners (ATCO)—ahead of the 2026–27 fiscal year budget. During the meeting, the NBR Chairman also highlighted plans to introduce a “Wealth Tax” in place of surcharge and an “Inheritance Tax” on inherited property to boost revenue collection.
At the meeting, NOAB President Matiur Rahman Chowdhury proposed the complete withdrawal of import duties on newsprint and a reduction of corporate tax to 10 percent to sustain the newspaper industry. Meanwhile, ATCO President Anjan Chowdhury called for exemption from Tax Deducted at Source (TDS) on bills and demanded that income earned from online platforms such as YouTube and Facebook be treated as export earnings. He noted that the current tax burden on advertisement revenue is unsustainable for electronic media organizations that are not profitable.
In his welcome speech, the NBR Chairman said that the online system is being expanded to make the return submission process easier and more technology-driven for taxpayers. As part of this initiative, year-round return submission has been introduced. However, those who file on time will receive certain incentives. He added, “We are considering reintroducing the Wealth Tax Act. If implemented, we will be able to collect additional revenue from wealthy individuals beyond income tax, replacing the surcharge. That will be helpful.”
Highlighting efforts to expand the tax net, the Chairman said intelligence agencies are actively working in this regard. Currently, the number of Taxpayer Identification Number (TIN) holders stands at 12.8 million, while the number of Business Identification Number (BIN) holders is 800,000. A total of 4.25 million taxpayers have submitted their returns online, and 22,000 have applied for extensions.
Emphasizing the need to curb corruption to increase revenue collection, the NBR Chairman said, “We can increase our overall revenue, but we must stop leakages. We have already started working on this. If we can establish good governance at every level and nurture and encourage our honest, skilled, and hardworking officials, revenue leakage will automatically decrease, and revenue collection will increase.”
To ensure transparency in the audit process, he announced the discontinuation of manual systems. “Previously, the biggest irregularities occurred during the audit selection procedure. We have now stopped manual selection. For VAT, we have selected 20 risk-based audit criteria. For income tax, 100 percent online returns will be implemented in the 2025–26 fiscal year. As a result, there will be no data-related problems.”
He further added, “Around 20,000 electronic applications for up to 90 days’ extension have been processed on the digital platform. Revenue collection up to February has increased by approximately BDT 28,000 crore compared to the previous year, made possible through a new task force formed for income tax, customs, and VAT.”
Explaining the structure of the year-round return submission system, NBR Chairman Md. Abdur Rahman Khan said, “From next year, we are planning a major reform. Return submission will continue throughout the year, divided into four quarters. Those who file in the first quarter will receive incentives and rebates. Those filing in the second quarter will be considered regular. Those filing in the third quarter will pay slightly more, and those in the fourth quarter will pay even more. Therefore, taxpayers can decide whether they want to file early with benefits or later with higher payments. The same system will be applied to corporate tax.”
It is noted that, typically, the tax year begins at the end of June each year, with a deadline for return submission by November. However, this year the deadline has been extended to March 31. Previously, failure to submit returns within the stipulated time resulted in a 2 percent interest on outstanding tax, along with the cancellation of tax rebate benefits on various investments. According to NBR sources, the online return system is being further expanded to increase taxpayer participation and modernize the tax framework.
DBTech/DHE/MUM/OR
