The National Board of Revenue (NBR) aims to bring 50,000 new business entities under the VAT net this month.
However, VAT officials clarified that no business will be forced to register, adding that those who voluntarily obtain VAT registration are expected to submit monthly returns willingly.
The initiative has been taken ahead of the observance of VAT Day and VAT Week, which the NBR will celebrate from December 10 to 15 as in previous years.
This year, to accelerate new VAT registrations, the revenue authority has instructed all VAT commissionerates, divisions and circles to set up service centres, booths and desks from December 10 to 31 to raise awareness, reduce hassle and streamline the process.
During this period, unregistered businesses in various shopping malls and markets will be offered instant VAT registration, while VAT-related issues will be addressed promptly.
Field offices have also been asked to send reports on these activities to the NBR, officials said.
NBR Chairman Md Abdur Rahman Khan said they are giving priority to expanding the VAT net this year, and all commissionerates have already been instructed to take necessary steps in this regard.
Bangladesh introduced the Value-Added Tax on July 1, 1991, on the recommendation of the World Bank and the IMF. Before that, a sales tax system existed in the country.
The VAT system was introduced to make revenue collection easier, more transparent and more effective. Initially it covered a few sectors under the VAT Act 1991 and later expanded to a broader range.
The contribution of VAT to revenue has continued to grow. Currently, around 37 percent of NBR’s total revenue comes from VAT.
Another official said that there are currently around six lakh VAT-registered businesses.
“We have taken steps to increase this number to 6.5 lakh. Instructions have already been issued to all commissionerates,” he added.
Officials further said the government will not honour top VAT-paying companies this year, although traditionally nine national-level and 138 district-level businesses receive recognition every year.
Last year, after the change in government, NBR discontinued the event. At the time, officials said the selection criteria for top VAT payers would be revised.
Marking the VAT Day, NBR formed a nine-member central steering committee to oversee the observance of VAT Day and VAT Week 2025, headed by NBR Chairman Md Abdur Rahman Khan.
According to minutes of the second meeting of the celebration sub-committee, the country’s overall situation was taken into account before deciding not to present awards or crests to top VAT-paying companies this year as well.
The decision was unanimously approved by the central steering committee.
Since 2005, NBR has been awarding top VAT payers under a formal recognition policy. These honours have been given regularly over the years.
Seeking anonymity, an NBR official said, “We want to keep the celebrations low-profile this year. Due to the current political and economic situation, it is not possible to provide VAT honours.”
VAT Day and VAT Week will be widely promoted through banners, festoons, placards and roll-banners in key public locations across Dhaka, particularly roads, medians, flyovers and footbridges.
