NBR rewards early taxpayers with 5% rebate, penalises late filers

The National Board of Revenue (NBR) has introduced a new incentive-and-penalty framework for income tax return submissions, offering up to a 5 per cent rebate on payable net tax for taxpayers who file their returns by September, while imposing additional tax on returns submitted after December.

Under the new rules for the 2026-27 tax year, taxpayers filing returns between July and September will receive a rebate equivalent to 5 per cent of their payable net tax, capped at Tk 25,000. For example, a taxpayer with a net tax liability of Tk 100,000 will receive a Tk 5,000 rebate and pay Tk 95,000, while someone owing Tk 50,000 will receive a Tk 2,500 rebate.

According to the NBR, income tax returns can now be submitted throughout the year. However, the quarterly incentive structure has been introduced to encourage timely compliance.

Under the revised system:
July–September: 5 per cent rebate on payable net tax (maximum Tk 25,000).
October–December: No rebate or additional tax.
January–March: Additional tax of 2 per cent of payable tax or Tk 3,000, whichever is higher.
April–June: Additional tax of 5 per cent of payable tax or Tk 5,000, whichever is higher.

The NBR has also launched its e-return service for individual taxpayers for the 2026-27 tax year. Through the online platform, taxpayers can submit details of income, expenses, investments, assets and liabilities from home.

Taxes can be paid digitally through bank transfers, debit and credit cards, bKash, Nagad, Rocket and other electronic payment channels. Upon successful submission, taxpayers can instantly download their acknowledgement receipt and tax certificate, while support will also be available through the NBR call centre.

According to the revenue authority, Bangladesh currently has more than 10 million Taxpayer Identification Number (TIN) holders. More than 4.5 million taxpayers filed their returns online in the previous tax year. The new incentive and surcharge mechanism aims to expand digital tax services and encourage timely return submissions.