B Mirror Report: National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan has said that the upcoming national budget will aim to create a more business-friendly tax system through simplified tax laws and reduced unreasonable tax burdens.

He made the remarks while addressing a session titled “Improving Financial Statement Quality: Role of CFOs, Accountants, Managements and Oversight Bodies” at the Financial Accounting and Reporting (FAR) Summit 2026 held at a city hotel on Tuesday. The Financial Reporting Council (FRC) organized the event in collaboration with ICAB and ICMAB.

The NBR chairman said the government is committed to improving the business environment by rationalizing taxes and strengthening compliance. He stressed that accurate financial reporting by businesses is essential to achieving these goals.

He noted that although corporate tax rates have been reduced significantly over time—from around 50 percent to nearly 20 percent many businesses still complain about a high effective tax burden.

According to him, this gap is largely due to inaccurate or manipulated financial statements, which often lead tax authorities to rely on discretionary assessments to ensure revenue collection.

He also pointed out that underreporting of turnover and cash transactions remain major challenges in corporate financial reporting, creating tension between taxpayers and revenue authorities.

The NBR chief warned that dishonest reporting not only reduces government revenue but also creates unfair competition by allowing non-compliant businesses to gain an advantage over compliant ones.

He emphasized that transparent financial statements are crucial for ensuring fair taxation, protecting investors, strengthening the banking sector, and restoring overall economic confidence.

Md Abdur Rahman Khan also stressed the need to strengthen the Financial Reporting Council to improve oversight and accountability in financial reporting practices.

Several senior professionals from the accounting and finance sector participated as panelists in the discussion.