PM calls for broader tax net, people-friendly revenue system

Prime Minister Tarique Rahman today (18 August) called for widening Bangladesh's tax net rather than burdening existing taxpayers, stressing that a modern, digital data-driven and people-friendly revenue administration is essential for sustainable revenue growth.

Addressing the Revenue Conference 2026 at the Bangladesh-China Friendship Conference Centre in the capital, he also said the country's tax-to-GDP ratio remains low compared to its potential, while the tax base is still relatively narrow and a limited number of regular taxpayers bear much of the burden.

"Repeatedly increasing the tax burden on the same taxpayers is not a sustainable policy for increasing revenue," the Prime Minister said, stressing the need to identify people capable of paying taxes and bring them under the tax net through appropriate measures.

For this purpose, he said, there is no alternative to building a modern, digital and data-based tax administration.

Tarique Rahman said the government wants to transform the National Board of Revenue (NBR) and the country's overall revenue structure into a people-friendly system where taxpayers will not fear the institution but trust it.

"After the period of fascism, it is now time for us to turn around - in other words, it is time for Bangladesh to turn around. The people of the country expect the NBR to be a reliable and trustworthy institution. Taxpayers, in particular, want to see the NBR as an institution they can trust," he said.

The Prime Minister said it is possible to earn public confidence through efficient and sustainable revenue management.  "You must take the necessary steps to meet the expectations of taxpayers. The present government wants to transform the NBR and the overall revenue structure into a people-friendly system."

He also called for building a "strong revenue system" in the country in the interest of a prosperous Bangladesh.

"We all need patriotism and sincerity. Let us work together to build a strong revenue system…I wish success to this revenue conference with the expectation of a more prosperous, more investment-friendly and more business-friendly revenue management system," Tarique Rahman said.

Expressing his expectations from revenue officials, he said the country's revenue collection showed a positive trend from the middle of February to the end of June.

"I want to speak of a hope, a possibility and an expectation. Revenue collection remained positive from the middle of February until the end of June," the Prime Minister said.

"This proves that you can do it. You are the ones who can do it, and you certainly will be able to do it, Insha-Allah," he said.

The Revenue Conference-2026 was jointly organised by the Internal Resources Division of the Ministry of Finance and the NBR.

At the conference, officials from the income tax, value-added tax (VAT) and customs wings presented their respective action plans.

A presentation was also made on revenue and tax management.

Customs and tax officials from the field level shared their experiences and challenges and placed their views on addressing the problems they face in revenue collection and tax administration.

The Prime Minister listened attentively to their views and gave necessary directives.

He said the success of the NBR's activities is closely linked to the government's ability to formulate and implement development plans.

"This is why I do not see today's conference as an ordinary conference," Tarique Rahman said, expressing hope that it will provide direction for greater success in the future.

He said Bangladesh has inherited a fragile economy and that, like other state institutions, the revenue administration has also been affected by the legacy of the past.

Ignoring NBR rules and policies, favouring individuals or groups for personal or political interests, showing hostility towards others and arbitrary practices in revenue collection have raised questions about the institution and contributed to a loss of public confidence, the Prime Minister said.

He said the time has now come for Bangladesh to rebuild and move forward.

Tarique Rahman said the objective of a modern tax system should not be limited to collecting more revenue but should also focus on encouraging a larger number of people to pay taxes voluntarily.

He said regular taxpayers should be respected by the state, while those who deliberately avoid paying taxes should be brought into the system and encouraged to comply.

The tax administration and tax payment process, the Prime Minister said, must be simplified and freed from corruption and harassment so that people feel comfortable paying taxes voluntarily.

He also stressed the need to strengthen trust between taxpayers and the revenue administration.

"Customs, VAT or tax collection is not only a matter of enforcement," Tarique Rahman said, adding that revenue mobilisation becomes easier when taxpayers have confidence in the system.

He said rapid changes in the global economy, technological advancement and evolving patterns of international trade and business have created new opportunities as well as challenges for revenue administration.

The Prime Minister said revenue officials now need to acquire multidimensional skills and have clear knowledge of areas such as the digital economy, e-commerce, transfer pricing, international taxation, trade finance, financial crime, money laundering and artificial intelligence.

He said the NBR must adapt to these changes to effectively address the challenges and opportunities of the changing global economy.

Tarique Rahman also said VAT is an important source of revenue in a modern economy, but its effectiveness depends on proper implementation.

He urged the authorities to ensure that complexities in VAT administration do not create unnecessary obstacles to trade and business.

Referring to a "regrettable incident" involving the department during the tenure of the interim government, the Prime Minister called on all concerned to avoid any form of disorder and work together to resolve problems through discussion.

He said the government wants to move forward by taking everyone along and values the contribution of every individual to nation-building.

"We want those who are working in government to be able to work safely and comfortably for building the country," Tarique Rahman said.

The government will take necessary measures, if required, to ensure a stable and comfortable working environment and prevent such incidents in the future, he added.

Later, the Prime Minister visited various stalls showcasing revenue collection activities, tax administration and initiatives to expand the tax base.

Finance Minister Amir Khosru Mahmud Chowdhury, Prime Minister's Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir and acting NBR Chairman Ahsan Habib, among others, addressed the programme.