The tax system will be further simplified to create a business-friendly environment, and the burden of unreasonable taxes will be reduced: NBR Chairman

Photo: Collected

News Desk: National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan has said that initiatives will be taken in the upcoming national budget to simplify the tax system further and reduce the burden of unreasonable taxes in order to create a business-friendly environment. He made these remarks on Wednesday while presiding over a business session at the ‘Financial Accounting and Reporting (FAR) Summit-2026,’ held at a hotel in the capital.

The session, titled *“Improving Financial Statement Quality: Role of CFOs, Accountants, Managements and Oversight Bodies,”* focused on enhancing the quality of financial reporting.

The conference was organized by the Financial Reporting Council (FRC), with support from the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB).

The NBR Chairman said, “The government is committed to improving the country’s business environment by simplifying the tax system and formulating rational tax policies. However, to achieve this goal, it is essential not only to increase tax compliance but also to ensure truthful financial reporting by business entities.”

Highlighting various challenges in the tax system, he said, “Although the corporate tax rate has been reduced from around 50 percent to about 20 percent, many businesses still complain about high effective tax burdens.”

Abdur Rahman Khan said, “One of the major reasons for this is inaccurate and manipulated financial reporting. To compensate for potential revenue losses, revenue authorities often have to resort to discretionary assessments and policy interventions.”

He added, “The tendency to underreport sales data and conceal cash transactions has become a major concern in corporate financial reporting. This is creating discomfort and distrust between taxpayers and tax officials.”

He further said, “Dishonest financial information not only harms government revenue collection but also puts compliant businesses at a competitive disadvantage, as non-compliant entities gain extra benefits through tax evasion.”

The NBR Chairman said, “Transparent and accurate financial statements play a crucial role in ensuring a fair tax system, protecting investors, maintaining stability in the banking sector, and restoring confidence in the overall economy.”

He also emphasized strengthening the capacity of the Financial Reporting Council to ensure effective oversight and accountability in the financial reporting system.