Dhaka: The National Board of Revenue (NBR) has launched an automated online Value Added Tax (VAT) refund system, marking a significant shift towards digitalization by enabling direct refunds to taxpayers’ bank accounts. This initiative aims to eliminate the delays and challenges associated with the previous manual refund process.
According to Bangladesh Sangbad Sangstha, NBR Chairman Md Abdur Rahman Khan inaugurated the new system by transferring Tk 45.35 lakh in VAT refunds to the bank accounts of three taxpayers from different Dhaka-based VAT commissionerates. The event took place at the NBR conference room in Agargaon, where Khan emphasized the transition from manual to electronic systems, indicating potential legal and regulatory amendments for further simplification.
Khan highlighted the importance of setting clear timelines for each stage of refund processing, with the system designed to monitor and manage delays through automated alerts and accountability measures. Supervisory officials will have access to dashboards to track applications, ensuring a smoother process for taxpayers.
A key focus of the new system is automation, with Khan stating that paper-based refunds are being phased out. The system will require taxpayers to submit their bank details once, after which refunds will be processed electronically via Bangladesh Bank, linked to the government’s Integrated Budget and Accounting System (iBAS++).
Khan dismissed concerns that refunds might negatively impact revenue collection, asserting that transparent refund processes are integral to global tax systems. He also outlined broader digital reforms, including efforts to facilitate online VAT return submissions and plans to mandate such submissions through legal amendments.
To aid this transition, the NBR has initiated a program for taxpayers to update past paper returns in the e-VAT system, preventing compliance issues and penalties. Khan advocated for online systems as a means to improve efficiency, reduce environmental impact, and ease administrative burdens.
The e-VAT platform, separate from iBAS++, has been rebranded with a new logo to clarify its identity. As of now, 115 refund applications have been processed through the system, totaling claims of Tk 124.49 crore. The system, connected to Bangladesh Bank’s BEFTN, promises faster, transparent refund processing without the need for physical visits to VAT offices.
The NBR is seeking ongoing cooperation from taxpayers and media to ensure the success of this digital transformation in tax administration.