Under the interim government, the National Board of Revenue (NBR) has launched major reform initiatives to make the country’s revenue system stronger, more transparent, and more citizen-friendly.
To separate revenue policy formulation from its operational management, the “Revenue Policy and Revenue Management Ordinance, 2025” has been promulgated. According to the approval of a committee led by the Chief Adviser, NBR’s policymaking and administrative functions will now operate as two separate divisions. This separation is being viewed as a historic step toward ensuring accountability in tax administration.
Due to strict monitoring and effective measures to curb tax evasion, a significant surge in revenue collection has been recorded in the first half of the current fiscal year (July–December 2025). During this six-month period, total revenue collection reached BDT 185,223 crore, which is BDT 23,000 crore higher than the same period of the previous fiscal year.
International tenders have been floated for the construction of a world-class, modern, and aesthetically designed Customs House and Customs Academy in Chattogram, to be financed by the World Bank. At the same time, under government funding, the tender process for a modern and aesthetic tax building in Chattogram has been completed and contractors appointed; construction will begin soon. Construction of the Khulna Tax Building has been completed and is scheduled to be inaugurated on 29 January.
A 10-year Medium and Long-Term Revenue Strategy (MLTRS) has been adopted for the NBR. As part of this long-term plan, the strategy aims to increase the revenue-to-GDP ratio and strengthen structural capacity for revenue mobilisation. To achieve digital revenue management, the World Bank-funded Strengthening Domestic Revenue Mobilisation Project (SDRMP), costing nearly BDT 1,000 crore, has been undertaken to bring all NBR operations onto a digital platform.
To move away from the culture of tax exemptions, the Tax Expenditure Policy and Management Framework (TEPMF) has been formulated and published in the official gazette. Amendments to the Income Tax Act, 2023; Customs Act, 2023; and VAT and Supplementary Duty Act, 2012 have withdrawn NBR’s authority to grant tax exemptions. From now on, no tax exemption can be granted without parliamentary approval.
The authentic English texts of the VAT and Supplementary Duty Act, 2012; Customs Act, 2023; Income Tax Act, 2023; and VAT and Supplementary Duty Rules, 2016 have been published in the official gazette. As a result, both domestic and foreign investors will have clear and accurate access to tax laws, increasing taxpayers’ confidence and reducing ambiguity in enforcement, thereby improving the investment-friendly environment.
To ensure professional services for filing income tax returns and paying taxes, and to expand the tax net through greater awareness, 13,500 individuals have been awarded Income Tax Practitioner (ITP) certificates through competitive examinations. For the first time, income tax professionals were involved throughout the written and oral examination processes for issuing ITP certificates.
At the start of the new fiscal year, a system was introduced allowing importers, exporters, and their nominated C&F agents to pay import-export-related duties and taxes directly into the government treasury online through e-challan. Through integration of Customs’ ASYCUDA World system with the e-challan system, a new era has begun in which duties and taxes can be deposited directly from importers’ and exporters’ bank accounts, either online or offline. This initiative was implemented jointly by NBR’s ASYCUDA World and the Finance Division’s iBAS++ team.
In addition, provisions have been made to pay any amount of tax online directly into the government treasury through e-challan using Mobile Financial Services (MFS). bKash has already launched this service for taxpayers, allowing tax payments of any amount without fees or charges via merchant accounts. Other MFS providers have also been allowed to offer this service.
Giving top priority to trade facilitation, the NBR is organising monthly consultation meetings with stakeholders. Business representatives are able to directly present field-level problems related to customs, income tax, and VAT to the NBR chairman and members, enabling effective solutions based on clear insights.
As part of implementing the National Cyber Security Agency’s (NCSA) cybersecurity policy and compliance, a Security Operations Center (SOC) has been established and made operational at the NBR to strengthen the security of ASYCUDA infrastructure and sensitive information assets. Through the SOC, potential internal and external cyberattacks, risks, suspicious activities, and other cyber threats in Bangladesh Customs’ cyberspace are monitored, detected, and prevented round-the-clock (24/7).
Measures in the Public Interest
To support the government’s initiative to reduce Hajj expenses, airline tickets for Hajj pilgrims for 2025 and 2026 have been exempted from applicable duties. To promote environmentally friendly and modern mass transit, VAT exemption on metro rail services has been extended until 30 June.
During Ramadan, customs duty on date imports has been reduced by 40 percent and advance income tax by 50 percent. To keep essential goods within consumers’ purchasing power, tax, VAT, and import duty exemptions have been granted on rice, potatoes, onions, sugar, eggs, fresh fruits, edible oil, canola oil, and pesticides.
The NBR has issued new passenger-friendly baggage rules (Non-Tourist Passenger Baggage Rules, 2025). Under the new rules, a traveler can bring one new mobile phone duty-free once a year. Expatriate Bangladeshis who have stayed abroad for at least six months can bring two new mobile phones duty-free per year.
To make mobile phones more affordable, customs duty on mobile phone imports has been reduced from 25 percent to 10 percent. Duties on importing components for mobile phone assembling companies have been reduced from 10 percent to 5 percent, which is expected to significantly lower mobile phone prices in the domestic market.
Progress in VAT Reforms
To modernise and digitalise the VAT system, online registration, online return filing, online payment, e-refund, VAT smart invoices, and risk-based audit systems have been introduced. Through a special registration campaign, 131,000 new entities were registered for VAT in December 2025.
The NBR has also launched an online VAT refund application and processing system, allowing approved refunds to be transferred directly to taxpayers’ bank accounts.
Income Tax System Reforms
Online filing of income tax returns has been made mandatory for all taxpayers except senior citizens aged 65 and above, physically challenged taxpayers, special-needs taxpayers, Bangladeshis residing abroad, and foreign nationals working in Bangladesh. So far, more than 3.4 million e-returns have been submitted. Tax Identification Numbers (TINs) are also being issued via email for taxpayers residing abroad.
Advance income tax paid at the import stage is being automatically credited to e-returns. Processes are underway to introduce direct online income tax refunds.
Online systems have been introduced to ensure tax certificates and tax payments for foreign investors. Selection of returns for audit is being carried out in a fully transparent and automated manner. To make tax payment easier, direct tax verification activities have been newly launched nationwide, allowing taxpayers to submit returns directly from their business premises.
Customs System Reforms
The Bangladesh National Single Window has been launched, with 19 agencies connected for issuing certificates, licenses, and permits. Applications are being processed online within one hour or one day.
To promote export trade, bonded institutions have been given duty-free raw material import facilities, enabling faster clearance based on bonded license product information.
A new sub-module has been introduced to electronically record entry and exit information of every truck importing goods from India. New regulations have been formulated to ensure transparency and competition in issuing shipping agent licenses at seaports and river ports.
New licensing regulations for Customs Clearing and Forwarding agents (2026) have been issued. Automated software has been launched to enable all services for bonded warehouse license holders to be received and delivered online. An inventory of 6,069 long-stalled containers at Chattogram Port has been completed, and they are being auctioned off swiftly.
Overall, through policy reforms, technology-driven management, and enhanced administrative capacity, the National Board of Revenue has set a visible example of transformation in the revenue system within the interim government’s short tenure. These initiatives are expected to play a significant role in ensuring financial stability and sustainable development for the country.
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