NBR Chairman: VAT Audits Will Be Suspended If Necessary Until Automation System Is Operational

Abdur Rahman Khan, Chairman of the National Board of Revenue (NBR), has stated that VAT audits will be suspended if necessary until the automation system is fully implemented. He emphasized that this measure is not intended to harass businesses unnecessarily.

He made these remarks on Tuesday (26 August) while delivering the keynote speech at a dialogue on tax and VAT reform organized by the research institute, Centre for Policy Dialogue (CPD), in Gulshan. The event was moderated by CPD’s Research Director, Khandakar Golam Moazzem.

Chairman Abdur Rahman Khan further noted, “We want to establish a single VAT rate, but in some cases, reactions from business owners make this difficult. Currently, no one needs to physically go anywhere to pay VAT; it can be done with a single click in the system.”

Regarding tax exemptions, he said, “Tax breaks are given to domestic and foreign companies to promote employment. However, exemptions initially planned for 8 years sometimes extend up to 40 years. This reflects inefficiency in revenue management. We need to acknowledge this and implement reforms.”

He also warned about foreign loans, stating, “Without increasing domestic revenue, repaying these loans could become risky.”

On revenue sector reform, the chairman mentioned, “Ninety percent of the time is spent on policy-making. Therefore, we are dividing the revenue sector into two sections. If two people work in place of one, we hope efficiency will improve.”

Referring to the minimum tax provision as a “black law,” he said, “These provisions will be reformed in the future. But applying them now would reduce revenue collection, so their application will remain limited for the time being.”

Business leaders, entrepreneurs, and tax experts attended the dialogue and exchanged views on various aspects of VAT and tax reform.