Finance Adviser Salehuddin Ahmed has said that a significant portion of the VAT collected often does not properly reach the government treasury.
He said this on Wednesday at the ‘VAT Day and VAT Week 2025’ seminar at the National Board of Revenue (NBR) building in Agargaon, Dhaka.
Emphasising simplification and transparency in the VAT system, the Adviser said, “The VAT system should be such that it is easy for everyone to understand. If VAT collection can be ensured through a simple system, opportunities for manipulation will decrease.”
“When we pay VAT, we expect it to be properly deposited into the government treasury. But unfortunately, in our country, a significant portion of VAT often does not reach the treasury,” he added.
Stating that VAT laws must be enforced more strictly for shopkeepers and traders, the Finance Adviser said, “We need to bring about a change in everyone’s mindset. Increasing domestic resources is now extremely important for the country’s economic development.”
He said that if internal resources are not increased, the country will lose flexibility in development work, such as in the social sector, education, health and the implementation of various projects.
“We do receive some support as loans or grants from foreign sources, but you know how much interest has to be paid against loans. Our tax-to-GDP ratio is very low. This must be increased,” said Salehuddin Ahmed.
In his speech as chair of the seminar, NBR Chairman Md Abdur Rahman Khan pledged to simplify the VAT process further. He said, “VAT will be simple. Businessmen will only pay 15 percent VAT on sales. Why do we need such big books or so many laws for VAT? VAT will be simple. No businessman will need to hire a consultant. We will develop software, and the software itself will automatically calculate and collect VAT.”
The welcome speech at the seminar was given by NBR Member (VAT Implementation and IT) Md Azizur Rahman. The keynote paper was presented by NBR Member (VAT Audit) Syed Musfiqueur Rahman.
Special guests included FICCI Vice President Yasir Azman, Secretary of the Financial Institutions Division Nazma Mobarek, Finance Ministry Secretary Md Khairuzzaman Mozumder and Economic Relations Division Secretary Md Shahriar Kader Siddiqui.
