The National Board of Revenue (NBR) in Bangladesh is experiencing significant tax revenue losses due to complications in settling audit files resulting from the Income Tax Act-2023. The law has introduced procedural obstacles that make the audit resolution process time-consuming and costly. While tax audits are essential for ensuring compliance and collecting revenue, the new system requires taxpayers to navigate through nine officials, increasing the risk of sensitive information leaks and lost documents.
In previous fiscal years, the NBR generated substantial revenue through audit settlements. However, this year, only 16,019 cases have been approved, and the agency is struggling to maintain compliance. Experts have criticized the new provisions as unrealistic and potentially encouraging tax evasion. In response, the NBR has formed a seven-member task force, led by Tax Commissioner Iqtiaruddin Mamun, to reform the income tax law and make it more user-friendly.
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