B Mirror Report : The National Board of Revenue (NBR) on Tuesday launched an automated online Value Added Tax (VAT) refund system, enabling refunds to be transferred directly to taxpayers’ bank accounts and effectively 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 new electronic platform.

Speaking at the launch event held at the NBR conference room at Revenue Bhaban in Agargaon, the chairman said the authority has initially converted the existing manual refund procedure into a digital format to ensure continuity, with plans to further simplify the process through legal and regulatory reforms if required.

“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 major reform under the system will be the introduction of clearly defined legal 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.

He added that supervisory officials will be able to monitor pending applications through digital dashboards, while the system will automatically issue show-cause notices to officials responsible for unjustified delays. “If they fail to justify the delay properly, they will be brought under accountability,” he warned.

Highlighting automation as his top priority since assuming office, the NBR chairman said paper-based refunds would no longer be allowed. “We needed some time to build the system, but 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 framework after the VAT system proves successful.

Under the new system, taxpayers will only need to provide their bank account details once before clicking the “refund request” button, after which the entire process will be handled electronically by the NBR. Refunds will be paid directly through Bangladesh Bank.

The system is linked 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,” Khan said.

Rejecting the idea that refunds should be discouraged to protect revenue collection, he said refunds are a normal part of modern tax systems worldwide. “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,” he added.

Referring to broader digital reforms, the NBR chairman said the authority has introduced a crash programme allowing taxpayers to enter previously filed paper VAT returns into the e-VAT system, addressing compliance barriers caused by unrecorded data. He also said plans are underway to make online VAT return submission mandatory through amendments to the VAT law.

“Online systems save time, reduce travel, cut fuel consumption, ease traffic congestion and help the environment,” he said.

He also clarified that the VAT platform has been rebranded as “e-VAT” to avoid confusion with iBAS++, with a new logo introduced accordingly.

According to NBR data, 115 refund applications have already been submitted through the system, with total claims amounting to Tk 124.49 crore. The NBR said the new refund module, connected to iBAS++ and Bangladesh Bank’s BEFTN, will ensure faster, fully transparent refund processing and eliminate the need for taxpayers to visit VAT offices.

The NBR also sought continued cooperation from taxpayers and journalists to ensure the success of its ongoing digital transformation of tax administration.