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The International Monetary Fund (IMF) has recommended introducing a unified Taxpayer Identification Number (TIN) in Bangladesh as part of broad reforms aimed at modernising revenue administration, improving transparency, and curbing tax evasion.
Under the proposed system, all tax-related data—including income tax, VAT, customs, import-export records, and tax deductions at source—would be integrated into a single platform. This would allow authorities to access and analyse the full financial profile of individuals and businesses more efficiently.
The recommendation was made during a meeting on Tuesday between an IMF delegation and senior officials of the National Board of Revenue (NBR), led by Chairman Ahsan Habib.
The discussions are part of an ongoing IMF mission, headed by Bangladesh Mission Chief Iva Petrova, focusing on tax reforms, digital transformation, and revenue mobilisation.
The IMF noted that Bangladesh’s current system—where income taxpayers use electronic TIN (e-TIN) and businesses use separate Business Identification Numbers (BIN) for VAT—creates fragmented databases. This lack of integration limits effective monitoring and analysis of taxpayers’ overall economic activities.
A unified identification system would consolidate tax returns, banking data, and other financial records, enabling risk-based auditing, faster detection of tax evasion, and improved administrative efficiency. It would also simplify services for taxpayers by allowing access through a single identification number.
The IMF further emphasised the need for full digital transformation, recommending automated integration of the NBR database with other key institutions, including the Bangladesh Investment Development Authority (BIDA), the Registrar of Joint Stock Companies and Firms (RJSC), Bangladesh Bank, land registration authorities, and customs and commerce-related offices.
Experts say such reforms could significantly strengthen tax compliance. Professor Mustafizur Rahman of the Centre for Policy Dialogue (CPD) noted that a single TIN would enhance coordination, reduce evasion opportunities, and make tax services more accessible.
NBR officials acknowledged that reform efforts are already underway, with a focus on automation, data integration, and digital services. However, they cautioned that immediate implementation of a unified system remains challenging, citing the need to expand tax networks, upgrade infrastructure, and gradually integrate existing databases.
While the IMF has been advocating for merging tax identification systems since 2005, officials say Bangladesh may adopt the model in phases, aligning it with ongoing modernisation efforts.