Despite mandatory rules, legal requirements and incentives aimed at expanding the tax base, Bangladesh is still struggling to turn TIN holders into regular income-tax filers.

The NBR says 4.9 million individual taxpayers and companies filed returns in the 2025-26 tax year, against 13.1 million TIN holders—just 38 percent.

NBR Member Md Rafiqul Islam Chowdhury sees the rising numbers as progress, saying TIN holders increased by more than 1.3 million last year while returns also rose by several hundred thousand.

But he noted that hundreds of industries had shut and many people had lost jobs, meaning returns had not grown at the same pace as TIN registrations.

The NBR made online filing mandatory last year, while allowing multiple extensions and up to 90 additional days without penalties. Nearly 4.7 million individual taxpayers ultimately filed electronically.

For the current tax year, the NBR has introduced incentives to encourage earlier filing. Those filing between Jul 1 and Sept 30 will receive a 5 percent tax rebate, capped at Tk 25,000.

No rebate applies in the second quarter. A 2 percent penalty, capped at Tk 3,000, applies from Jan 1 to Mar 31, rising to 5 percent, capped at Tk 5,000, in the final quarter.

The government expects filings to rise further this year.

“I hope the number will increase significantly this year. Political stability has returned to the country,” Rafiqul said, citing business and tax incentives.