UNB and BSS

The government is set to launch the “Strengthening Domestic Revenue Mobilisation Project”, which is aimed at modernising the tax administration and enhancing internal revenue collection.

To be spearheaded by the Internal Resources Division and implemented by the National Board of Revenue (NBR), the project will cost Tk 1,009.20 crore.

Of this, Tk 8.80 crore will come from the government, and the remaining Tk 1,000.40 crore will be financed by the World Bank.

Approved by the Executive Committee of the National Economic Council (Ecnec) yesterday, the project will run from July 2025 to June 2030, covering all tax and VAT offices across Bangladesh, including the NBR headquarters in Dhaka.

The project aims to strengthen the NBR’s institutional capacity to increase domestic revenue collection.

Its key components include establishing a research and statistics unit, launching policy analysis and training programmes, and implementing comprehensive automation reforms aligned with the NBR’s modernisation master plan.

Notable digital upgrades under the project include enhancements to existing platforms such as the one for electronic tax identification number (e-TIN), online tax return submission system (e-Return), and online source tax submission system (e-TDS/TCS).

It will also introduce new systems, bearing the names “eRevACC”, “eTLM”, “eAudit”, “eTax Office”, “ETAM”, and “eSupport”, all of which are said to be designed for seamless integration and improved administrative efficiency.

In addition, the project will modernise the VAT system through a new “SAP Competency Centre” and develop an “Integrated VAT Administration System” (IVAS), alongside a national e-invoicing system.

A unified unique identification number for both income tax and VAT will be introduced.

Integration will be carried out between NBR systems like the computerised customs management system ASYCUDA World and the IVAS, and national platforms such as iBAS++ (Integrated Budget and Accounting System).

Other initiatives include the establishment of an automated call centre to provide support to taxpayers and the launch of a modern e-learning platform for NBR staff and stakeholders.

According to project documents, reforming the revenue collection process is critical for the country’s development and economic growth.

Over the past 16 years, revenue collection has grown at an average annual rate of 13.5 percent, rising from Tk 485 billion in FY2007 to Tk 3,666 billion in FY2023, a 7.5-fold increase.

Despite global disruptions such as the Covid-19 pandemic, the Russia-Ukraine war, and recessionary pressures, revenue collection grew by 11.1 percent on average over the last five years.

However, Bangladesh’s overall revenue collection remains low. The revenue-to-GDP ratio fell from 9.1 percent in FY2012 to 8.5 percent in FY2024.

The tax-to-GDP ratio also dropped to 7.4 percent in FY2024-25, lagging behind South Asian peers.

The new project seeks to address these challenges by expanding the taxpayer base, rationalising tax expenditure, reducing compliance gaps, and fully digitising and automating the tax administration.

The Planning Commission believes that the project would support crucial reforms to raise revenue through improved taxpayer services and better administrative efficiency.

The Ecnec meeting, chaired by Chief Adviser Professor Muhammad Yunus, approved 17 projects in total, involving Tk 8,974.28 crore. Among these, 11 are new, five revised, and one received a time extension without incurring any cost.

Of the total cost of the projects, Tk 3,180.34 crore will come from the government, Tk 5,563.43 crore through project loans, and Tk 230.51 crore from the organisations concerned.

Among the 17 is an “Upazila Complex Expansion Project” (2nd phase), a programme for Rohingyas and host communities, and projects for drug rehabilitation centres in divisional cities, marine academy enhancements, and the establishment of a 3rd submarine cable.

Projects to improve access to justice for women, create clubs for youngsters, and enhance mobile library services were also approved.

The Strengthening Domestic Revenue Mobilisation Project, along with projects under some government bodies, will fall under a broader World Bank-funded initiative titled “Strengthening Institutions for Transparency and Accountability”.

The government bodies are the Planning Division, Implementation Monitoring and Evaluation Division, the Comptroller and Auditor General’s Office, and the Bureau of Statistics.

A total of 15 projects that had been approved previously were also presented during the meeting, attended by advisers, Planning Commission members, and the secretaries concerned.