Transparency International Bangladesh (TIB) has called on the government to prioritise domestic technological capacity and potential while adopting new automation projects in revenue management.

The anti-corruption watchdog also warned against the repeated failure of donor-driven initiatives that have yielded little tangible result.

TIB made the call today following reports that the National Board of Revenue (NBR), with World Bank support, is preparing to launch a new Tk 1,000 crore project aimed at boosting income tax collection and curbing tax evasion, according to a press release.

TIB cautioned that moving ahead with such a project without examining past failures and lessons learnt would amount to wasteful spending.

"Despite multiple digitisation efforts over the past 15 years, key processes like online income tax return filing are not fully available. Tax-filing processes are still heavily paper-based," said Iftekharuzzaman, Executive Director of TIB, in a statement.

"Harassment and corruption persist, and the tax-to-GDP ratio continues to decline," he added.

Bangladesh's tax-to-GDP ratio dropped to 8.5 percent in FY24, down from 9.1 percent 12 years ago, with an average of 7.4 percent during the period — one of the lowest globally.

TIB expressed concern that the planned Strengthening Institutions for Transparency and Accountability project, involving a $250 million World Bank loan, may follow the same path as earlier efforts that failed due to donor-prescribed, vendor-locked software solutions and inadequate implementation.

The organisation stressed the need to involve local tech firms and avoid establishing unnecessary infrastructures, such as SAP training centres funded by borrowed money.

"Technology decisions must be based on practical utility and long-term sustainability, not donor dictates," Iftekharuzzaman said.

TIB urged policymakers to invest in building the NBR's technical infrastructure by leveraging local expertise and innovation.