Dhaka: The Institute of Chartered Accountants of Bangladesh (ICAB) hosted a seminar on “Changes in the Income Tax, VAT and Custom Laws through Finance Ordinance 2025” today via the Zoom platform. The event featured Md. Abdur Rahman Khan, chairman of the National Board of Revenue (NBR), as the chief guest, with NBR members AKM Badiul Alam and Mohammad Mobinul Kabir addressing the seminar as special guests.
According to Bangladesh Sangbad Sangstha, the keynote papers highlighted significant changes brought by the Finance Ordinance 2025. The new VAT deduction and collection guidelines replace the 2021 version, requiring VAT registered recipients to adjust VAT returns to account for VAT deducted at source. This revision aims to streamline the VAT process by integrating the deduction into the VAT return rather than requiring a separate deposit within seven days of the tax period’s end.
The updated procedure mandates that the certificate of VAT deducted or collected at source, known as form Mushak-6.6, be issued within three working days of filing the VAT return, instead of three days after depositing the VDS. Additionally, a VAT unregistered entity must deposit the VAT deducted at source within 15 days using A-challan or E-payment systems and issue the certificate within three working days of the deposit.
Rakesh Saha, Partner at Ernst and Young Advisory Services Bangladesh Limited, emphasized changes in the VAT and SD Act and Customs Act, noting that benefits previously restricted to commercial importers are now extended to transport contractors for manufacturing exportable goods. Furthermore, VAT exemptions have been expanded to include certain vegetable materials and specific services, such as day labor and the sale or transfer of land and buildings.
The seminar underscored the strategic objectives of the Finance Ordinance 2025, aiming to enhance Bangladesh’s tax-to-GDP ratio through automation and infrastructure development. By focusing on digital skills and entrepreneurship, the government seeks to prepare the workforce for the Fourth Industrial Revolution while integrating climate resilience into energy security initiatives. Accounting professionals are poised to play a crucial role in these reforms, providing guidance and ensuring compliance in the evolving fiscal landscape.