Bangladesh adds 131,000 businesses to VAT base in December

The NBR says the number of registrations exceeded its original target set as part of a nationwide drive to expand the tax base

The National Board of Revenue (NBR) says it registered more than 131,000 businesses for value added tax (VAT) in December, exceeding its original target as part of a nationwide drive to expand the tax base.

The tax authority had aimed to bring 100,000 businesses under VAT registration ahead of VAT Day and VAT Week last month. However, officials said the final number surpassed that goal following special campaigns carried out across the country.

In a statement issued on Saturday, the NBR said the registrations were completed through daily drives and surveys conducted by all 12 VAT commissionerates, including on public holidays.

The authority said the total number of VAT-registered businesses has risen to about 775,000, up from 516,000 before the interim government took office.

Speaking at a VAT Day press conference, NBR Chairman Abdur Rahman Khan said Bangladesh’s VAT net remains too small in relation to the size of the country’s business sector.

He said there are around 644,000 active VAT payers, a figure that does not reflect the number of businesses operating nationwide.

Khan said the 2025 VAT Day campaign focused on expanding registration, but added that further efforts would be needed to broaden compliance.

According to the NBR, VAT remains the single largest source of tax revenue, accounting for 38 percent of total government revenue last year.

The authority said recent legal changes had lowered the annual turnover threshold for mandatory VAT registration from Tk 30 million to Tk 5 million, a move aimed at bringing more businesses into the tax system.

The NBR also highlighted steps to simplify VAT compliance, including online registration, electronic submission of VAT payments to the state treasury, digital filing of returns through the e-VAT system, and automated refunds of excess payments to bank accounts.

Officials said cooperation from businesses, consumers and the media would be essential to establishing an efficient, technology-based VAT system and strengthening public finances.