Government makes TIN certificate mandatory to open bank account

Students, recipients of government allowances, and individuals and organisations with tax exemptions will remain outside the tax net

The government has made it mandatory to provide a Taxpayer Identification Number (TIN) when opening a bank account in an effort to expand the tax net.

However, students, government allowance recipients, and individuals or organisations that have received tax exemptions through an official government gazette will be exempt from this requirement.

Industry stakeholders fear that the decision could create difficulties for ordinary citizens and low-income working people.

The proposal was announced on Thursday by Finance Minister Amir Khosru Mahmud Chowdhury during his budget speech in parliament.

He said, “I propose that, except for student accounts, no-frills accounts, and persons exempted by a gazette notification issued by the board from the requirement of obtaining a TIN, any other person must submit a TIN certificate when opening a bank account.”

At a time when the government is promoting a cashless society and digitalisation, there are concerns that this decision could push a large segment of the population outside the formal banking system.

Although there are currently a large number of bank account holders in the country, many of them already possess TINs.

In Dhaka and other major cities, bank officials often requested TINs on their own initiative, or in some cases arranged for TIN registrations when necessary.

There are currently a large number of bank account holders in the country, and many of them already possess TINs.

In Dhaka and other major cities, bank officials often requested TINs on their own initiative, or in some cases arranged for TIN registrations when necessary.

As a result, some people later discovered that a TIN had already been opened in their name when they attempted to register for one themselves.

Bank officials often did this because, in certain cases, proof of tax return submission was required for obtaining loans. However, until now, a TIN was not mandatory merely for opening a bank account.

Meanwhile, the National Board of Revenue (NBR) is planning to integrate directly with banks’ information systems.

The budget also mentions plans to establish online connectivity with the databases of the National Identity Card (NID) system, utility service providers, sub-registry offices, and other institutions.

The finance minister said, “Through Central Data Integration, the NBR’s database will be connected with the National Identity Card system, banks, utility services, sub-registry offices, and other institutions to facilitate the exchange of information.”