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Published : 07 Jan 2026, 01:19 PM
The National Board of Revenue (NBR) has launched an online system for value-added tax (VAT) refunds to ease the long-standing hassles businesses face in claiming refunds.
Three business entities received their VAT refunds instantly on Wednesday as the automated system was inaugurated.
Another institution completed the process but could not receive the refund at the time due to incorrect bank information.
NBR Chairman Abdur Rahman Khan formally inaugurated the system at the Rajosshyo Bhaban in Agargaon, Dhaka.
He said, “We have followed the exact procedure that exists in the manual refund system and brought it into an electronic system.”
“Let’s try the electronic system first. If we see that the process needs to be simplified further, we will amend the law accordingly.”
Out of 124 applications, the entire process for four had been completed in advance. Their refunds were finalised through the e-VAT system during the launch.
To facilitate this, a new refund module has been added to the e-VAT system. Under this arrangement, the system is connected with the Finance Division’s iBAS++ platform, enabling direct transfer of refund amounts to taxpayers’ designated bank accounts through Bangladesh Bank’s BEFTN system.
Under the online refund mechanism, taxpayers can apply for refunds through their monthly VAT returns. After the relevant VAT commissionerate processes the application, the taxpayer’s bank information is verified. The refundable amount is then automatically transferred to the taxpayer’s bank account.
Officials said the entire verification process involving Bangladesh Bank and commercial banks now only takes about 30 minutes and is fully automated.
On Wednesday, VAT refunds totalling Tk 4.5 million were transferred directly to the bank accounts of three taxpayers under three VAT commissionerates in Dhaka through the online system.
After receiving the refund, Md Imran Hossain, chief financial officer of Amber Group, said at the event: “This is a commendable and groundbreaking initiative. For those of us in the textile business, this is very important. Previously, the process was time-consuming and complicated.”
“The system launched today is much more transparent and simple, and will enable us to receive refunds easily. We hope the National Board of Revenue will continue to take such industry-friendly and taxpayer-friendly initiatives so that businesses can operate smoothly.”
When asked about the total amount of pending VAT and income tax refunds, the NBR chairman said it would be around Tk 40 billion in total, with VAT refunds accounting for about Tk 15 billion.
“It is not that we will refuse to give refunds simply to avoid reducing our collection. We want to make the process completely transparent so that there is no scope for any irregularities,” he said.
"Because, you see, this is the rightful due of taxpayers. They have paid this money, often by taking high-interest bank loans, and it has remained with the government for a long time. We do not even pay them interest. If they still have to run from pillar to post to get their refunds, then we are not treating our taxpayers fairly.”
The NBR chief said that if the agency collects Tk 4 trillion in a fiscal year, paying refunds of around Tk 40 billion should not be a problem.
