DHAKA, Jan 7, 2026 (BSS) - The National Board of Revenue (NBR) today launched an automated online Value Added Tax (VAT) refund system, allowing refunds to be transferred directly to taxpayers' bank accounts, a move considered as ending long-standing delays and harassment in the refund process. 

NBR Chairman Md Abdur Rahman Khan formally inaugurated the system by transferring Tk 45.35 lakh in VAT refunds to the bank accounts of three taxpayers from three Dhaka-based VAT commissionerates through the electronic platform. 

Speaking at the launch event at the NBR conference room at its revenue Bhaban in the capital's Agargaon, the NBR chairman said the authority has initially replicated the existing manual refund procedure into an electronic format to ensure continuity, with plans to further simplify the process through legal and regulatory amendments if needed. 

"We have first taken the existing manual process and converted it into an electronic system. Once the system runs fully, we will review whether the process needs further simplification. If necessary, we will amend the law and rules," he said. 

Abdur Rahman Khan said a key reform will be setting clear, legally defined timelines for each stage of refund processing. 
 
"The law or rules will categorically specify how many days or even hours each official can take to process an application. If that time is exceeded, the system will automatically trigger an alarm," he explained. 

According to him, supervisory officials will be able to monitor pending applications through dashboards, and the system will automatically issue show-cause notices to officials responsible for unexplained delays. 
 
"If they fail to justify the delay properly, they will be brought under accountability. Otherwise, files will simply remain stuck in the pipeline and taxpayers will never receive their money," he warned. 

The NBR chairman said his priority since taking office has been automation rather than continuing paper-based refunds. 
 
"I have clearly said we will not give paper-based refunds. We needed some time to build the system, but ultimately it has started today. Once it stabilises, it will be generalised," he said, adding that income tax refunds would also be brought under a similar automated system after VAT refunds prove successful. 

Under the new system, taxpayers will only need to provide their bank account details once. "The taxpayer will simply click the 'refund request' button. From there, everything will be handled on our end," Khan said, stressing that refund payments will be made directly from Bangladesh Bank. 

He explained that the system is connected to the government's Integrated Budget and Accounting System (iBAS++), ensuring global-standard checks and balances. 
 
"Those who collect revenue do not keep the accounts. The Controller General of Accounts maintains the accounts, and Bangladesh Bank handles the money. This separation ensures transparency and prevents manipulation," he said. 

Abdur Rahman Khan rejected the notion that refunds should be discouraged to protect revenue collection.

 "If we earn Tk 4 lakh crore in revenue and need to return Tk 4,000 crore as refunds through a transparent process, there is nothing wrong with that. Around the world, refunds are part of the system, and we should follow that principle," Abdur Rahman Khan said. 

Listing broader digital reforms, the NBR chairman also referred to recent initiatives to boost online VAT return submission. 

He said many taxpayers were unable to submit online returns because their previously filed paper returns had not been entered into the system by tax offices, leading to penalties and compliance barriers. 

To address this, NBR has launched a crash programme allowing taxpayers themselves to enter past paper returns into the e-VAT system, ensuring their data is updated and penalties avoided. 
 
He also said plans are underway to make online VAT return submission mandatory through amendments to the VAT law, similar to income tax. 

"Online systems save time, reduce travel, cut fuel consumption, ease traffic congestion and help the environment. If people can do everything from home, there is no reason to force them to visit offices," Khan said. 

Clarifying confusion over system names, he said the VAT platform has been rebranded as "e-VAT" to avoid misunderstanding with iBAS++, noting that a new logo has also been introduced. 

According to NBR data shared at the event, 115 refund applications have been submitted through the system so far, with claims amounting to Tk 124.49 crore. 

The NBR said the new refund module in the e-VAT system is connected to iBAS++ and Bangladesh Bank's BEFTN, enabling direct electronic fund transfers to taxpayers' nominated bank accounts after approval by the respective VAT commissionerates. 
The NBR said the system will ensure faster, fully transparent refund processing and eliminate the need for taxpayers to visit VAT offices. 

It also sought continued cooperation from taxpayers and journalists to make the digital transformation of the tax administration successful.