Written by The Banking Post
The National Board of Revenue (NBR) has introduced large-value corporate tax payments through mobile financial services (MFS), marking a major step toward faster, fully digital tax collection.
The facility was launched on Sunday with trial transactions conducted via an online merchant wallet service of a leading MFS provider. During the demonstration, tax deducted at source (TDS) payments of Tk 130 million and value-added tax (VAT) payments of Tk 640 million were processed digitally.
With the new system, corporate taxpayers can now pay taxes entirely through digital platforms, eliminating the need to physically visit banks.
Speaking at the launch, NBR Chairman Md Abdur Rahman Khan said the initiative would significantly ease compliance for corporate taxpayers. “Large-value tax payments through mobile financial services will make the process faster and more efficient and will play an important role in modernising the tax collection system,” he said.
He noted that many companies already use MFS platforms to pay employee salaries and will now be able to use the same channels to pay withholding tax and VAT. He also expressed hope that other MFS providers would roll out similar services.
Under the arrangement, withholding tax payments will be made through the NBR’s electronic Tax Deducted at Source (e-TDS) system, while VAT payments will be processed via the Finance Division’s A-Challan system.
Officials said the move would improve transparency, cut transaction time and costs, and encourage wider use of digital channels for large-value tax payments. They added that the government will continue efforts to modernise revenue administration and strengthen cashless government financial services.
