NBR observing VAT Day; VAT Week commences tomorrow

The National Board of Revenue (NBR) is observing VAT Day on Tuesday and VAT Week from December 10-15, underscoring the importance of timely VAT registration under this year’s theme, “Register on Time, Pay VAT Accurately.”

To strengthen the campaign, the revenue authority is launching a nationwide special VAT registration drive from December 10-31, targeting the inclusion of around 100,000 new businesses under the VAT net. At present, Bangladesh has 6.44 lakh VAT-registered entities.

According to NBR figures, VAT contributed 38 percent of the authority’s total revenue collection in the last fiscal year.

During the first five months of the current fiscal year, VAT receipts grew by 22 percent compared with the same period a year earlier, the NBR said in a press release.

Officials noted that improved VAT administration and expanded automation would help sustain this positive trend and further strengthen the country’s fiscal foundation.

The NBR stressed that taxes paid by citizens are vital to national development. Revenue collected through VAT finances the Annual Development Programme (ADP) and supports key sectors including education, healthcare, road and rail infrastructure, debt servicing, social protection, agriculture, and subsidies in the power and industrial sectors.

Despite recent gains, several challenges continue to hamper VAT collection. These include unregistered businesses, limited automation, weak enforcement of the input tax credit chain, excessive exemptions, manual audit processes, and difficulties in collecting VAT from e-commerce and digital platforms.

To address these gaps, the NBR has expanded digital services such as online VAT registration, online return submission, e-payment, e-refund, e-audit, and e-invoicing. It has also introduced a risk-based audit system to curb evasion. In addition, the VAT Smart Invoice system has been rolled out to enhance transparency and compliance.

Reiterating its commitment to ensuring voluntary compliance and reducing tax evasion, the NBR said a modern and efficient VAT system is essential to achieving the country’s vision of a developed and prosperous Bangladesh.

The authority called for active cooperation from consumers, businesses, industry owners, and the media to strengthen VAT administration and uphold fiscal discipline.