The government is confronting a significant challenge in meeting its income tax collection targets, as a substantial proportion of registered taxpayers are failing to submit their annual tax returns within the stipulated deadline. Despite the widespread issuance of electronic Tax Identification Numbers (e-TINs), compliance levels remain markedly low, prompting the National Board of Revenue (NBR) to adopt a stricter enforcement strategy.
According to the Chairman of the NBR, taxpayers who possess an e-TIN but have not filed their tax returns will first receive automated notices generated from the central tax database. These digital alerts are intended to serve as a final reminder to ensure compliance. If taxpayers still fail to respond, tax inspectors will be instructed to conduct physical follow-ups, including visits to the residences of non-compliant individuals, to enforce submission requirements.
The deadline for filing income tax returns for the current fiscal year was 31 March, following multiple extensions granted by the authorities to facilitate taxpayers. Official figures indicate that Bangladesh currently has approximately 12.8 million e-TIN holders. However, only around 4.2 million individuals submitted their returns within the deadline. This leaves more than 8 million registered taxpayers yet to comply with their filing obligations.
Economists and senior tax officials argue that this compliance gap is significantly undermining revenue mobilisation efforts. They note that many individuals with taxable income continue to avoid filing returns, resulting in substantial revenue losses for the state. Under existing tax law, concealing income or expenditure, or failing to file returns, is treated as a punishable offence.
In response, the government is tightening enforcement measures and reinforcing legal consequences for non-compliance. Taxpayers who fail to submit returns on time may face a range of penalties, including financial fines, withdrawal of tax exemptions, additional tax liabilities, and restrictions on access to essential public services.
The key implications of non-filing are summarised below:
| Issue | Description |
|---|---|
| Financial Penalty | A fine of up to 10% of the assessed tax may be imposed, along with daily penalty charges for continued delay. |
| Withdrawal of Tax Benefits | Investors may lose eligibility for exemptions and deductions linked to approved investments. |
| Additional Tax Burden | An extra charge of 2% per month may be applied on outstanding tax liabilities. |
| Public Service Disruption | Access to utilities such as electricity, gas, and water connections may be temporarily affected in severe cases. |
| Employment Complications | Difficulties may arise in salary processing and documentation verification in both public and private sectors. |
Experts emphasise that strengthening tax compliance is essential for ensuring transparency, improving fiscal stability, and accelerating national development programmes. They argue that a well-regulated tax system not only increases government revenue but also enhances public trust and service delivery.
The NBR has urged all taxpayers to promptly submit their returns to avoid legal complications and financial penalties, reiterating that voluntary compliance remains the most efficient route for maintaining a stable and equitable taxation framework.