FROM PAGE B1

However, he said the effectiveness of the system will depend on how well existing rules on minimum tax and refunds are aligned.

Barua said the proposed timeline for individual taxpayers is encouraging, but warned that the three-year waiting period for corporate refunds could create liquidity pressures for businesses. “The three-year wait for corporate refunds is too long. It effectively locks up working capital that businesses need for daily operations and growth,” he said.

He also stressed the need for full digitisation of the refund process.

“For the reform to work in practice, the NBR must fully digitise the refund process. A strong digital system would reduce paperwork, cut delays, and minimise harassment. Ultimately, the success of this initiative will depend not only on the law, but also on how efficiently refunds are processed in practice,” Barua added.

However, former NBR member Apurba Kanti Das sees a challenge. “The proposal is a positive step, but the real challenge will be implementation,” he said.

He added that although Bangladesh already has legal provisions for tax refunds, taxpayers rarely receive them in practice due to lengthy verification processes and administrative complexities.

When asked about the three-year refund period, a senior NBR official said immediate refunds could discourage taxpayers from adjusting their credits against future liabilities.

“That is why the NBR is proposing this structure,” the official added.