Bangladesh’s National Board of Revenue (NBR) has made online income tax return filing mandatory for individual taxpayers from fiscal year 2025–26, implemented through local tech firm Synesis IT. However, NBR has yet to sign a formal contract with the company, despite the system handling sensitive taxpayer data. Officials and experts have voiced concern over potential legal and data security risks arising from this contractless arrangement.

Synesis IT developed the online return software under a European Union grant that expired in mid-2024, after which the firm continued service without payment. NBR Chairman Abdur Rahman Khan acknowledged the absence of a contract, citing lengthy government procurement procedures. Synesis officials said they have repeatedly requested a formal agreement, warning of financial strain from providing unpaid services. Some NBR insiders expressed surprise that a mandatory national service operates without a legal framework.

The situation highlights governance and accountability gaps in Bangladesh’s digital tax modernization. While the system has reduced corruption and improved taxpayer convenience, unresolved contracting issues could expose the government to future legal and financial complications if not promptly addressed.