The National Board of Revenue (NBR) plans to raise the number of VAT-registered businesses to 40 lakh within the next three years, its Chairman Abdur Rahman Khan said on Tuesday.
He shared the target at a press conference held at the NBR headquarters to mark VAT Day and VAT Week 2025.
The NBR chairman said VAT officials have already been instructed to take necessary measures, including initiatives to ensure a geometric rise in VAT registrations. He added that efforts are underway to remove fear and misconceptions about VAT among small businesses.
As in previous years, the NBR will observe VAT Day on 10 December 2025 and VAT Week from 10–15 December 2025. This year’s theme is “Register on Time, Pay VAT Accurately”.
Focusing on registration, a nationwide special registration campaign will be conducted from 10 to 31 December with the target of issuing 1,00,000 new VAT registrations. Currently, Bangladesh has 6,44,000 VAT-registered businesses.
According to NBR data, 38 percent of total revenue collected last fiscal year came from VAT. In the first five months of the current fiscal year, VAT collection rose by 22 percent compared to the same period last year.
NBR officials said strengthening VAT administration will help boost revenue collection and reinforce the country’s economic foundation.
Revenue paid by citizens is being utilised in a wide range of public services including the Annual Development Programme (ADP), education, healthcare, road and rail infrastructure, debt servicing, social protection, agriculture, and subsidies for power and industry.
However, VAT collection still faces several challenges such as unregistered businesses, lack of full automation, weak input tax credit mechanisms, excessive exemptions, manual audits, and difficulties in collecting VAT from e-commerce and emerging digital platforms.
To address these issues, NBR is modernising the system through online registration, online return submission, e-payment, e-refund, e-audit, VAT smart invoices, and a risk-based audit mechanism to curb evasion.
Ensuring voluntary compliance and reducing tax evasion remain NBR’s key priorities, the chairman said, adding that a strong and efficient VAT system is essential for building a prosperous Bangladesh. He called for active cooperation from consumers, businesses, industry owners, and the media.
