Written by The Banking Post
The tax authority is planning a major overhaul of the filing system, allowing individuals to submit income tax returns throughout the year from FY27.
Chairman of the National Board of Revenue, Abdur Rahman Khan, said a new law is being considered to formalise year-round filing, replacing the current deadline-based system.
Under the proposed model, taxpayers who file early may receive incentives or rebates, while rates could gradually increase for those filing later in the year. “Those who file returns in the first quarter will get benefits,” he said, hinting at a tiered structure to encourage timely compliance.
The move follows repeated deadline extensions this year, alongside the introduction of online applications for up to three months’ extension.
Speaking at a pre-budget consultation in Dhaka, the NBR chief also outlined plans to widen the tax base—particularly in value-added tax (VAT), where coverage remains limited.
“We want to bring VAT under widespread coverage. Our VAT net is very small,” he said, adding that compliance measures similar to income tax—such as linking services to registration—could be introduced for businesses.
He noted that such enforcement helped expand the number of Tax Identification Numbers (TINs) from around 1.4 million a decade ago to over 12 million now. However, VAT registrations have grown more slowly, reaching about 800,000—far below potential.
“This should not be 800,000. It should be at least 8 million,” he said, pointing to large volumes of business transactions that remain outside the VAT net.
The NBR is also considering new revenue measures, including a potential wealth tax and levies on inherited assets within city corporations.
Officials say the proposed reforms aim to modernise tax administration, improve compliance, and strengthen revenue mobilisation in the coming fiscal years.
