NBR to initiate rational tax rates for welfare state, LDC graduation: Chairman

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Thursday said rational tax rates will be set to support transition to welfare state and graduation from the Least Developed Country (LDC) status.

He made the remarks while addressing a pre-budget view exchange meeting for the 2026–27 fiscal year at World Trade Center in the city.

Chittagong Chamber of Commerce and Industry (CCCI) organised the event, bringing together business leaders and representatives from various sectors.

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The NBR chairman in his speech said that revenue collection is vital for building a welfare state, but it should not impose excessive pressure on taxpayers.

“Instead of burdening everyone, we will rationalise tax rates to facilitate the transition to a welfare state and LDC graduation,” he said.

Highlighting ongoing reforms, Khan said the tax system has been modernised to encourage compliance among reluctant tax payers.

He added that the advance tax, additional VAT and advance income tax refunds will be processed quickly through direct bank transfers with improved coordination.

“The government is working to modernise and digitize tax, VAT, bond and customs management. Initiatives have been taken to deregulate the rules so that taxpayers are not discouraged from paying taxes, VAT and customs duties,” he said.

He further said manual method will be phased out for non-compliant taxpayers, physical examination in customs will be controlled, and the bond management system will be modernised so minimise harassment.

Khan also noted that taxpayers will be able to file returns throughout the year, eliminating the need to visit NBR office. Certificates are now being issued online.

Speaking at the event, CCCI Administrator Mohammad Motahar Hossain stressed for alternative incentives measures to restructure import-level taxes and protect domestic industry, saying that the tax-GDP ratio should also be increased to the desired level through timely reforms.