B Mirror Report : The National Board of Revenue (NBR) is planning to introduce QR codes or modern digital tracking systems on individual products to prevent VAT evasion and broaden the tax base.

NBR Chairman Md. Abdur Rahman Khan announced the initiative during a pre-budget discussion for the 2026–2027 fiscal year held at the NBR headquarters in Agargaon on Saturday. He said the system would initially be introduced in tobacco products and bottled beverages.

According to the chairman, linking product-level data with the NBR system from the production stage will allow authorities to easily verify whether goods fall under the tax net. He noted that many countries have already achieved success in revenue management using similar digital technologies.

He added that if QR codes are implemented nationwide, consumers will also be able to scan products to check whether they are legally produced and whether VAT has been paid. In case of irregularities, whistleblowers will be able to report issues through the system and may be rewarded, while strict action will be taken against those involved in violations.

The NBR chief said tobacco products would likely be the starting point due to higher levels of tax evasion in the sector. Plans include upgrading existing banderole systems with QR codes or advanced security markings to ensure full monitoring from production to marketing.

He further stated that the initiative could later be expanded to bottled beverages and other consumer goods, including soaps, shampoos, and tissues. The system aims to reduce disparities between compliant and non-compliant businesses in terms of market share and tax contribution.

Abdur Rahman Khan emphasized that many manufacturers already use internal coding systems, making it feasible to implement a national-level digital tracking system. He stressed that the tax administration should focus on supporting business growth rather than hindering it, comparing revenue collection to harvesting honey without damaging flowers.

He also urged reducing excessive fines and administrative complexities, noting that such burdens discourage new entrepreneurs. The NBR is working to reduce discretionary powers in tax administration and has already begun shifting from manual audit selection to an automated system to improve transparency.