NBR targets 100,000 new VAT players reg in Dec

Staff Reporter :

The National Board of Revenue (NBR) has set a goal of bringing 100,000 additional businesses under the VAT net this month, in observance of VAT Day and the start of VAT Week on Tuesday, NBR Chairman Md Abdur Rahman Khan announced at a press briefing at the NBR headquarters in Dhaka on Tuesday.

Currently, Bangladesh has approximately 644,000 VAT-registered entities, while only 344,000 submitted VAT returns in October.

“With business volume in the country being substantial, our VAT collection still remains very low,” he noted. “We are actively working to recover lost revenue.”

Khan also revealed that the long-awaited automated VAT refund system is nearing completion. Once launched, it will aim to eliminate delays and bring greater transparency for businesses claiming refunds. Additionally, the NBR plans to introduce a one-click e-VAT return system that will allow small businesses to file returns independently, without the need for intermediaries.

Khan warned that this year’s tax collection has been hampered by instability in the banking sector — which has weakened corporate tax revenues — coupled with reductions in the development budget, both of which have contributed to underwhelming fiscal returns.

Despite these setbacks, he projected that tax collection could rise by 16 percent during the first five months of fiscal year 2025-26.

He added that amendments are being made to the VAT law to streamline procedures and support the broader automation drive.