Govt plans mandatory TIN for all bank accounts holders

To expand the tax base, the government is set to make Taxpayer Identification Number (TIN) mandatory for opening bank accounts. Existing account holders will also need a TIN to keep their accounts active.

However, exemptions may apply only to students, recipients of government allowances, and individuals or entities officially exempted through gazette notifications, according to sources at the National Board of Revenue (NBR).

Finance Minister Amir Khosru Mahmud Chowdhury is expected to propose the measure in the upcoming budget. 

Currently, a large number of bank account holders do not have TINs. In such cases, higher source tax is applied on interest income, although obtaining a TIN has never been mandatory for banking access.

Bankers warned that the requirements could reduce the number of bank accounts and slow transactions through formal channels. However, experts argue that linking banking activities with tax compliance would improve monitoring and reduce tax evasion.

The NBR is also planning wider data integration with banks. Beyond banking data, it aims to link its systems with National ID (NID), utility services, sub-registry offices, and other government databases through an online platform.

In addition, the tax authority is considering several new measures to widen the tax net, including making TIN mandatory for registering motorcycles with engine capacity of 150cc or above, introducing a Withholders Registration Number (WIN) for entities deducting source tax, and imposing a 0.20% tax on retailers.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, told TBS that previous moves to make TIN mandatory for credit card holders had reduced uptake. A similar impact could be seen in banking transactions if account opening is tied to TIN requirements.

"There is already a degree of fear about the banking sector. The NBR should address these concerns before introducing further mandatory requirements," he said.

Bangladesh currently has around 17 crore bank accounts, although many individuals or institutions hold multiple accounts. The exact number of account holders remains unclear.

Tax expert and Managing Director of SMAC Advisory Limited Snehasish Barua said mandatory electronic TIN (e-TIN) requirements risk reversing financial inclusion in Bangladesh's cash-heavy economy.

He said such a barrier could push entrepreneurs away from formal banking, increase reliance on cash, ultimately affecting bank deposit growth and liquidity.

He added that instead of strict mandates, the state should first move towards a cashless ecosystem, allow digital disclosure of bank accounts in tax returns, and gradually integrate tax and banking systems within a defined timeframe.

"Full integration of national asset databases with tax returns would help curb evasion and expand the tax base," he added.