The National Board of Revenue (NBR) plans to bring 100,000 new businesses under VAT registration within this month. The initiative aims to expand the country’s VAT system and boost revenue collection.
At a press conference in Dhaka, NBR Chairman Md. Abdur Rahman Khan said, “Currently, the VAT payment net is small. While around 644,000 businesses are registered, this is still insufficient compared to the total number of businesses in the country. VAT collection remains low relative to the size of our economy.”
He added that this month-long drive will focus on registering 100,000 new businesses under VAT. Over the next one to two years, NBR plans to bring 3–4 million businesses under VAT coverage, which will play a crucial role in increasing revenue and improving business discipline.
NBR is also preparing to launch a long-awaited automated VAT refund system, which will make refund processes faster and more transparent. Additionally, a new “one-click” e-VAT return system will allow small businesses to submit returns online directly, without intermediaries.
The Chairman emphasized, “With VAT registrations increasing, there is still a need to expand further. A significant portion of total businesses remains unregistered, presenting substantial opportunities for improvement.”
He also noted that banking sector instability has slowed tax collection this year, especially in corporate taxes, and the reduced development budget has affected revenue flows. Despite this, NBR expects VAT collection to increase by around 16% during the first five months of FY 2025–26.
Efforts are underway to amend VAT laws to make compliance easier and to implement automated processes more quickly.
This year, VAT Week will be observed from 10–15 December, under the theme “Register on Time, Pay VAT Properly.” Starting 1 December, various Value-Added Tax Commissionerates across the country will conduct new business registration drives and awareness campaigns throughout the month.
NBR hopes that these measures will make the tax system more transparent, digital, and efficient, while making VAT registration and filing easier and more convenient for businesses.
Source: The Banking Post, BD News 24
