The National Board of Revenue (NBR) is set to overhaul the travel tax collection system by introducing a mechanism that allows outbound passengers to pay the tax directly, replacing the existing arrangement where airlines include it in ticket prices.

Announcing the move during a pre-budget consultation at the NBR headquarters in Dhaka on Thursday, NBR Chairman Md Abdur Rahman Khan said the current method often results in irregularities, with funds not consistently reaching the state treasury.

“We are working on a mechanism that will allow passengers to conveniently pay the tax themselves and obtain an official challan (receipt),” he said, adding that the system will be simple enough to permit on-site payments at airports.

The proposed change is part of a broader effort to improve transparency and accountability in revenue collection.

During the same discussion, the NBR chief also criticised widespread VAT evasion by sweetmeat traders. “None of the sweet shop owners give VAT receipts. They don’t use electronic fiscal devices either,” said Khan.

He rejected a proposal by the Bangladesh Sweets Manufacturers Association to reduce VAT on sweetmeats from 10 percent to 3 percent. “You’re suggesting that revenue increases when the VAT rate is lower. That’s an absurd idea,” he said.

Instead, the NBR plans to implement a VAT-inclusive pricing model for sweetmeats, similar to that used in supermarkets, so customers pay a single price inclusive of VAT.

Other trade associations also presented proposals, including the Aviation Operators Association of Bangladesh’s call to exempt jet fuel and aircraft parts from duties and taxes.

In response, Khan reaffirmed the NBR’s commitment to streamlining tax regulations and making them more business-friendly.