NBR Launches Nationwide Tax Compliance Drive

The National Board of Revenue (NBR) has launched a special nationwide enforcement drive to strengthen tax compliance, directing tax zones across the country to deploy inspection teams to verify whether taxes deducted at source are being properly deposited into the government treasury under the Income Tax Act, 2023.

The NBR said the inspections are being carried out under Section 147 of the Income Tax Act, which authorises tax officials to examine businesses and ensure that withholding taxes have been correctly deducted and deposited.

The revenue authority urged businesses, organisations and taxpayers to cooperate fully with inspection teams and remain aware of the legal powers granted to tax officials under the law.

Under Section 147, authorised officials may enter commercial establishments, offices and business premises to conduct on-site inspections. They are empowered to examine account books, vouchers, bank statements, receipts and other financial records related to business transactions.

The law also allows tax officials to inspect electronic records stored on computers, cloud servers and other digital devices. Where necessary, they may access password-protected systems to verify tax-related information.

Officials are further authorised to temporarily seize account books, documents, electronic records or digital devices if required for verification. They may also collect copies of records and place official identification marks or seals on documents during inspections.

According to the NBR, these measures are intended to improve transparency in withholding tax administration, prevent revenue leakage and strengthen overall tax compliance.

The revenue authority also reminded taxpayers that Section 147(2) provides penalties for individuals or organisations that obstruct or fail to cooperate with tax officials while they are performing their statutory duties.

The NBR instructed all withholding tax deductors to deposit taxes through the electronic challan (e-Challan) system, ensuring the correct legal provisions and economic codes are used when making payments.

To address concerns over the implementation of Section 147, the NBR said taxpayers facing operational difficulties, alleged harassment or other grievances may contact the Member Secretary of the NBR's Section 147 Committee via the designated official email.

The nationwide drive is part of the government's broader effort to strengthen tax enforcement, improve revenue mobilisation and achieve the Tk 6.04 lakh crore revenue collection target set for the 2026-27 fiscal year, which accounts for the largest share of the government's overall Tk 6.95 lakh crore revenue goal.