DHAKA, April 5, 2026 (BSS) – National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan today announced that the government will prioritize a business-friendly tax structure in the upcoming national budget, balancing the urgent need for increased revenue with the necessity of fostering a conducive investment climate. “The NBR intends to introduce extensive changes to the VAT Act to streamline compliance,” he made the remarks during a pre-budget consultative meeting for the next fiscal year 2026-27 held at the NBR office in the city. The discussion featured representatives from six prominent trade bodies, including the American Chamber of Commerce in Bangladesh (AmCham), the Bangladesh China Chamber of Commerce and Industry (BCCCI), the India-Bangladesh Chamber of Commerce and Industry (IBCCI), and the Bangladesh Women Chamber of Commerce and Industry (BWCCI). Starting next fiscal year, the NBR chief said that the submission of online VAT returns will be made 100% mandatory for all registered businesses. “The NBR is committed to eliminating the requirement for physical visits to VAT offices. All processes, from registration to return filing, will be manageable from a taxpayer’s home or office premises. Necessary amendments to existing laws, rules, and regulations are currently being drafted to remove any administrative or legal hurdles to this digital transition,” he added. To promote inclusivity and reduce the cost of compliance for smaller entrepreneurs, he said, the NBR is developing a dedicated software solution specifically for SMEs.  “This initiative targets businesses that lack specialized accounting departments or the resources to hire VAT consultants. Under this plan, users will only need to input simple receipt and payment entries into the system, which will then automatically generate their VAT returns,” he added.  By simplifying the process, he said that the NBR aims to significantly widen the VAT network while ensuring small businesses are not burdened by complex accounting requirements. The NBR Chairman highlighted that while everyone engaged in business must pay VAT, the NBR is actively working on a specialized study regarding the service sector.  "We are currently analyzing the overall effect of introducing differential VAT rates for the service sector," he stated, emphasizing that the goal is a fair and equitable contribution across all industries. In a move to increase transparency and curb potential corruption and delays, the Chairman announced a major policy shift regarding tax refunds.  “If a taxpayer is found to have paid more than their assessed liability, the excess amount will be credited directly to the individual’s or entity’s bank account. This automated refund mechanism is designed to replace the often cumbersome manual processes of the past,” he added. During the session, business leaders presented a range of proposals aimed at ensuring economic stability and encouraging private sector growth. President of the AmCham Syed Ershad Ahmed mentioned that ensuring long-term policy consistency will build investor confidence and comprehensive modernization of Customs will reduce bureaucratic complexity. BWCCI urged the government to raise the minimum tax-free income limit for women to Tk 4.5 lakh and to establish supportive policy frameworks tailored for female entrepreneurs. The NBR Chairman concluded the meeting by reflecting on the scale of the challenge ahead.  He described the historical tax records of the country as disappointing, noting that when he assumed office, there were only 5 lakh VAT registrations.  However, following several intensive registration drives, that figure has now grown to 8 lakh. He reiterated his commitment to maintaining this momentum, stressing that while the pressure to meet revenue targets is high, the NBR’s primary objective remains the creation of a simplified, transparent, and digital-first tax environment that supports the national economy.