Dhaka: The National Board of Revenue (NBR) is set to observe VAT Day tomorrow and launch VAT Week from December 10-15, focusing on timely registration under the theme, “Register on Time, Pay VAT Accurately.” This initiative aims to emphasize the importance of effective tax collection and compliance.
According to Bangladesh Sangbad Sangstha, the NBR will initiate a nationwide special VAT registration campaign from December 10 to 31, targeting the inclusion of approximately 100,000 new businesses into the VAT system. Currently, the country has 644,000 VAT-registered entities. VAT contributed 38 percent to NBR’s total revenue collection in the previous fiscal year, with VAT receipts growing by 22 percent in the first five months of the current fiscal year compared to the same period last year, as stated in an NBR press release.
Officials from NBR highlighted that enhancing VAT administration and expanding automation are crucial for sustaining this growth trend, which is vital for strengthening the nation’s fiscal foundation. The revenue collected plays a significant role in financing the Annual Development Programme (ADP) and supporting essential sectors such as education, healthcare, infrastructure, debt servicing, social protection, agriculture, and subsidies in power and industrial sectors.
Despite the progress, the VAT collection system faces challenges, including unregistered businesses, limited automation, weak enforcement of the input tax credit chain, excessive exemptions, manual audit practices, and difficulties in collecting VAT from e-commerce and digital platforms. To address these issues, NBR has expanded digital services, including online VAT registration, return filing, e-payment, e-refund, e-audit, e-invoicing, and introduced a risk-based audit system to curb VAT evasion.
The implementation of the VAT Smart Invoice aims to enhance transparency and compliance. NBR reiterated its primary goal of ensuring voluntary compliance and reducing tax evasion, emphasizing that achieving the national vision for a developed and prosperous Bangladesh requires a robust and efficient VAT system. The authority called for active cooperation from consumers, businesses, industry owners, and the media to make VAT administration more effective.