BSS
  21 Apr 2026, 19:42

NBR to phase out tax holiday culture to prevent revenue leakages

DHAKA, April 21, 2026 (BSS) - The National Board of Revenue (NBR) is planning to move away from the long-standing tax holiday culture to ensure that all businesses contribute to the national exchequer, regardless of the tax amount. 

NBR Chairman Md. Abdur Rahman Khan today emphasized this shift during a pre-budget meeting held at the NBR Bhaban in the city, said a press release.

The NBR Chairman expressed concern over the exemption culture, stating that it has become increasingly difficult to control and is causing significant side effects in the economy.

He noted that diversified business groups—ranging from industries to media—often shift their profits toward sectors with tax exemptions, which creates systemic leakages.

“We want to gradually exit this holiday culture. Everyone must pay taxes, whether the rate is high or low,” Khan added. 

He further asserted that businesses should only be considered viable if they can maintain a net profit after fulfilling their tax obligations, rather than relying on tax holidays to survive.

During the meeting, representatives from various sectors highlighted operational hurdles. 

Hares Mohammad, a representative of the Bangladesh Electrical Association (BEA), pointed out complexities regarding online VAT returns.

“While manual submissions have been discontinued, many old records remain un-updated in the digital system, making it difficult for taxpayers to file returns online,” he added.

In response, the NBR Chairman clarified that the online system was introduced to make the process transparent and fast.

He reminded taxpayers that they had been given until March to voluntarily include their previous manual returns into the system.

To address these grievances, the Chairman issued a stern directive to officials to identify and resolve pending returns immediately. 

He ordered that reports on stuck returns be produced instantly and that concerned parties be summoned for quick solutions.

Khan warned that departmental action would be taken against any officials found guilty of negligence or irregularities regarding these delays.

The pre-budget discussion saw participation from 12 organizations, including the Bangladesh Electrical Association (BEA), Bangladesh Manufacturers Association of Transformers and Switchgears (BMATS), and the Bangladesh Semiconductor Industry Association (BSIA).

 These groups proposed various reductions in customs duties and VAT to support their respective sectors.

The Chairman concluded by inviting taxpayers to voice their concerns openly, promising that the NBR would take necessary measures to simplify and improve the tax administration process.