E-payment made mandatory for taxes

The National Board of Revenue (NBR) has made electronic payment mandatory for all types of taxes in order to ensure real-time receipt and improve government's overall cash flow.

Officials at the tax administration said until now taxpayers have to pay up to Tk 500,000 through automated challan (A-Challan) or e-payment.

Following a notification of the NBR issued on March 23, any amount of tax has to be deposited to the state treasury through electronic means, said an official of the NBR.

The electronic payment will ensure real time deposit of the taxes whereas earlier the tax collector had to wait for sometime because of payment through pay orders or treasury challan, he said.

With the new rule, the pay order and manual treasury challan has been scrapped, the official added.

Officials said the tax administration took the decision in line with a condition by multilateral lenders that all tax payments have to be done electronically.