Business leaders on Wednesday accused the National Board of Revenue (NBR) of irregularities, harassment, and even extortion by field-level officials, saying such practices are stifling growth and investment.
The allegations were raised at the NBR’s first “Meet the Business” programme at its headquarters in Dhaka, where trade body representatives from across the country shared their grievances directly with revenue officials. The session, which will now be held on the second Wednesday of every month, was chaired by NBR Chairman Md. Abdur Rahman Khan.
Participants highlighted a wide range of problems, including non-adjustment of advance income tax (AIT), excessive turnover tax on small and medium firms, and arbitrary actions by customs and port officials.
“False cases are routinely filed against exporters and importers, but when the High Court clears them, no action is taken against the officials responsible,” said Nasir Khan, managing director of Jennys Shoes. Criticising the stagnant state of the leather sector, he argued that the NBR had kept it as a “bonsai tree” with no space to grow.
A survey by the Centre for Policy Dialogue (CPD) was also cited, showing that 72% of businesses identified bribery and harassment by taxmen as major obstacles, while 82% felt current tax rates were unfair and imposed without explanation.
In response, NBR Chairman Khan acknowledged businesses’ concerns and said reforms were underway, including measures to automate bond facilities, introduce online corporate tax filing, and launch a Grievance Redress System for taxpayers. He admitted that turnover tax had become burdensome but argued it was necessary to address revenue shortfalls.
“As a nation, we are heavily indebted. There is no alternative but to increase revenue,” he said. “Everyone has to contribute. But at the same time, we must amend rules and hold officials accountable so businesses are treated fairly.”
