Facing mounting pressure to meet ambitious revenue targets, the National Board of Revenue (NBR) is set to introduce nine new tax zones from July in a bid to expand the tax net and strengthen direct tax monitoring across Bangladesh.
The National Board of Revenue (NBR) is ramping up efforts to increase revenue collection by launching nine new tax zones amid growing concerns over shortfalls in meeting annual targets. Despite failing to meet collection goals in recent years, the government continues to raise its revenue targets—placing additional strain on the country’s primary tax authority.
According to NBR sources, the initiative will officially begin in July, increasing the total number of tax zones from 41 to 50. Confirming the development, NBR member GM Abul Kalam Kaykobad told Amar Desh that the expansion will boost the number of taxpayers, improve tax collection, and enhance monitoring capabilities. It will also allow for the establishment of more circle offices in rural areas.
Under the new plan, existing zones in Chattogram will be restructured, resulting in Chattogram-5, Chattogram-6, and a new zone called Cox’s Bazar-1. Similarly, a separate tax zone for Noakhali will be formed by splitting the existing Cumilla zone. Additional new zones will be established in Narsingdi, Faridpur, Jashore, Kushtia, and Dinajpur. However, specific jurisdictions for each zone are yet to be finalized.
Each new zone will be headed by a commissioner, although no new full-time appointments have been made yet. Instead, existing commissioners have been assigned additional responsibilities to oversee the setup. A formal directive has already been issued to this effect.
Each tax zone will comprise four range offices, led by an additional commissioner (Range-1) and joint commissioners (Ranges 2–4). These ranges will supervise a total of 22 circle offices, managed by deputy commissioners, assistant commissioners, inspectors, and other NBR staff. Recruitment for additional personnel, including inspectors, is already underway.
Currently, Dhaka holds 25 of the country’s 41 tax zones, followed by Chattogram with four. Other cities such as Sylhet, Gazipur, Narayanganj, Mymensingh, Barishal, Khulna, Rajshahi, Rangpur, and Bogura have one zone each. There are also two special zones: the Large Taxpayers Unit (LTU) and the Tax Survey Zone.
Despite these measures, Bangladesh’s revenue structure remains heavily dependent on indirect taxes, which account for nearly 66 to 67 percent of total revenue. These include Value Added Tax (VAT), import duties, and excise taxes—burdens often passed onto ordinary consumers, fueling inflation.
Economists argue that the country should pivot towards direct taxation to reduce inequality. “The focus on increasing direct taxes is important, but it’s not being implemented effectively,” said Dr. Mahbub Ullah, former professor of economics at Dhaka University. He emphasized the need to identify new sources of direct tax, such as growth centers in rural areas and urban corridors along highways.
Dr. Ullah also stressed stricter enforcement against tax evasion and urged authorities to map untapped economic zones to broaden the direct tax base, ultimately promoting equity and sustainability in national revenue collection.
LND/BG
