Photo: Collected
The National Board of Revenue (NBR) has taken an initiative to develop a special app to collect advance tax at the rate of Tk 2 per Tk 1,000 when goods are supplied to retailers. To deal with its revenue shortfall, the agency is now turning to information technology to collect this retail-level tax. The NBR’s IT wing has already started building the app, which may be finalised for use from January.
According to NBR sources, the budget for the current fiscal year imposed an advance tax of 0.2 per cent on the supply of goods to retailers. That means Tk 2 in advance tax will be deducted for every Tk 1,000 worth of goods supplied. Although the provision had been in the budget all along, the agency has now moved to enforce it strictly.
Initially, the tax will be collected through the distributors of large manufacturing companies, and the distributors will have to use the special app for that purpose. The app will allow them to keep records of sales to retailers, issue receipts, automatically generate e-invoices and receive payment for goods. At the end of each month, distributors will deposit the advance tax into the government treasury at Tk 2 per Tk 1,000 based on their sales records. The tax liability lies with the retailer, but distributors will collect it and deposit it into the treasury. Provision is also being made to deposit the tax through mobile banking.
NBR sources further said that in the first phase the app will be launched only for distributors. There are plans to gradually make its use mandatory for all wholesalers as well.
According to those concerned, there are now around 70 lakh retailers in the country. Once the new system is fully in place, a large number of retail businesses will come under the advance tax net. However, this NBR initiative, along with the current budget’s requirement of a business identification number (BIN) to open a bank account, has caused deep concern and discontent among small traders.
In the first three months of the current fiscal year, the NBR’s revenue collection fell short by Tk 41,879 crore. The agency is taking such steps to widen the tax net in order to tackle this huge shortfall.
By the numbers
According to the NBR, the revenue collection target for July-September of the current fiscal year was Tk 1,34,396 crore, against which Tk 92,517 crore was collected, The Daily Star Bangla reported on 29 October 2026.
According to the same Daily Star Bangla report, Tk 90,825 crore had been collected in the same period of the previous fiscal year.
Sources
Original report: Bangladesh Pratidin
Background sources: The Daily Star Bangla, 29 October 2026
