The government of Bangladesh has embarked on an ambitious digital transformation plan aimed at curbing widespread tax evasion and boosting revenue collection by integrating the National Board of Revenue (NBR) with both public and private sector databases. According to The Daily Industry, the initiative-considered one of the most comprehensive fiscal data reforms in the country’s history-will connect the NBR to the Bangladesh Financial Intelligence Unit (BFIU), Anti-Corruption Commission (ACC), Bangladesh Bureau of Statistics (BBS), Planning Commission, Comptroller and Auditor General’s Office, and other government bodies. Officials say the integration will also extend to private sector systems such as Enterprise Resource Planning (ERP) platforms and national payment gateways, including NPSB, RTGS, BEFTN, EkPay, Google Pay, and SSLCommerz. The goal is to ensure automated tracking of financial transactions, strengthen tax compliance, and create a transparent ecosystem that minimizes human interference and corruption.
Digital Revolution in Tax Administration: The initiative was discussed at a high-level meeting under the Strengthening Institutions for Transparency and Accountability (SITA) project, chaired by Dr. Wahiduddin Mahmud, the government’s Planning Adviser. During the session, Fayez Ahmad Tayyeb, Special Assistant to the Chief Adviser, presented a detailed concept paper outlining the roadmap for digital unification.
The concept paper emphasizes that all government software must be sourced domestically, with source codes owned and secured by the government. It also calls for reducing dependency on foreign vendors for software upgrades and maintenance.
According to the Planning Commission, the transformation will be carried out in three phases-interconnecting existing government software, establishing a National Data Governance Authority, and applying Artificial Intelligence (AI) and Machine Learning (ML) for policy analysis and tax surveillance.
Phase One: Interoperability Across Government Systems: In the first phase, all major government agencies’ software will be made interoperable, ensuring smooth data exchange between ministries and departments. Officials explained that the current challenge lies in diverse IT protocols across agencies, which restrict data sharing.
Through sector-specific Application Programming Interfaces (APIs) and middleware integration, a unified standard for data exchange will be developed. The NBR’s digital infrastructure will be connected to both public and private platforms, allowing automated tax and VAT data transfers. As per the concept paper, this interoperability will enable real-time tracking of corporate transactions, automate electronic invoice (e-invoice) generation, and facilitate direct tax deduction at source (e-TDS) from business ERP systems.
A senior Planning Commission official told The Daily Industry, “The ultimate goal is to establish a seamless data flow between public and private entities, which will not only reduce tax evasion but also enhance transparency in project implementation and fiscal governance.”
Phase Two: National Data Governance and Interoperability Authority: The second phase will focus on forming a National Data Governance and Interoperability Authority (NDGIA). This body will supervise a National Data Exchange System connecting the core databases of all ministries. The authority will maintain a vendor-neutral and license-free digital platform, ensuring central storage of all source codes to prevent manipulation or unauthorized data access. The NDGIA will act as the central regulatory and security oversight body for data integration, ensuring that fiscal and personal data are protected under strict encryption and cybersecurity standards. Phase Three: AI and Machine Learning for Fiscal Monitoring: In the final phase, AI and ML tools will be applied to detect anomalies, suspicious financial movements, and patterns of tax evasion. The concept paper envisions microservice-based AI algorithms that will automatically flag irregularities and alert relevant agencies such as the BFIU and ACC. For instance, when a taxpayer purchases a luxury car or high-value property, the NBR will instantly receive the transaction data. Similarly, if an individual or company makes an unusual fund transfer, the BFIU and ACC will receive real-time notifications for further scrutiny.
Tayyeb noted that this will create a self-regulating digital ecosystem capable of identifying corruption and financial malpractice without relying on manual audits.
Economists Welcome the Move, Caution Against Poor Implementation: Economists and policy experts have largely welcomed the government’s digital unification initiative but warned that technical inefficiency, data silos, and weak institutional coordination could hinder its effectiveness.
Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), told The Daily Industry: “Bangladesh has been trapped in a cycle of weak budget formulation and poor implementation due to inadequate revenue mobilization capacity. Integrating banks, payment gateways, and the stock exchanges with the NBR will not only boost tax collection but also minimize corruption through automation.” Dr. Khatun emphasized that the integration could significantly expand the tax base, capturing previously undeclared incomes and assets through cross-referenced data. She, however, warned that cybersecurity and data protection laws must be strengthened to safeguard citizen information.
Another economist, Dr. Zahid Hussain, former Lead Economist of the World Bank’s Dhaka office, echoed similar concerns, stating that digital transformation must go hand-in-hand with institutional reform. “Automation alone won’t solve tax evasion if institutional discipline and accountability remain weak. The system needs to ensure both data integrity and strong enforcement.”
NBR’s Integration with Private Sector Systems: The NBR’s integration with local business ERP systems is considered a groundbreaking reform. Under the proposed system, every corporate transaction-sales, purchases, or payroll-will be automatically logged into the NBR database.
This will enable: Real-time tax and VAT collection. Accurate corporate profit monitoring. Reduction of manual tax filing errors. Increased transparency in trade and procurement. An NBR official told The Daily Industry: “Once the ERP integration is complete, no company will be able to manipulate financial statements. The system will automatically calculate tax liabilities based on actual transactions.” The official added that linking the NBR with digital payment gateways will help ensure full compliance with value-added tax (VAT) and income tax requirements.
Domestic Software Sovereignty: One of the cornerstones of the initiative is promoting domestic software ownership. The concept paper mandates that all government applications must be developed locally to ensure national digital sovereignty. It also recommends storing all government source codes within a central repository, reducing dependence on foreign vendors for upgrades or maintenance. This will not only cut costs but also protect sensitive fiscal data from external threats.
Boosting Transparency and Accountability: Experts believe the integration will transform how fiscal and administrative data are managed across the government. With ministries, tax authorities, and financial intelligence units sharing a single digital framework, project monitoring and budget execution will become far more transparent. The system will allow the Planning Commission to track the real-time progress of development projects, identify bottlenecks, and ensure that public funds are used efficiently. According to The Daily Industry, the initiative also aims to make the NBR a centralized data-driven institution, capable of policy-based decision-making using analytics and AI insights.
Looking Ahead: The project, while ambitious, reflects Bangladesh’s growing commitment to fiscal modernization and digital governance. If implemented effectively, it could dramatically reduce corruption, increase national revenue, and restore investor confidence. However, experts warn that success will depend on robust legal frameworks, capacity building, and political will to ensure institutional cooperation. As Dr. Fahmida Khatun aptly summarized, “Technology can empower transparency, but without strong governance and accountability, digital tools alone won’t end corruption. The key lies in how honestly the system is executed.”
