NBR Moves to Bring 100,000 New Businesses Under VAT Net

Automated refund system, one-click e-VAT return to roll out as part of wider revenue push

Dec 9, 2025 1 min read

The National Board of Revenue (NBR) is launching an aggressive drive to register 100,000 new businesses under the VAT system this month, marking the start of VAT Day and VAT Week tomorrow.

Announcing the initiative at a press briefing in Dhaka, NBR Chairman Md Abdur Rahman Khan said the move is aimed at strengthening revenue mobilisation at a time when VAT collection remains far below potential.

Bangladesh currently has 6.44 lakh VAT-registered businesses, while only 3.44 lakh filed returns in October. “Compared to the size of our economy, VAT collection is still very low. We are working to recover the revenue that has been lost,” the NBR chief said.

Automation push

Khan said the long-awaited automated VAT refund system is now at its final stage. Once launched, it is expected to cut processing delays and bring more transparency to the refund process.

A one-click e-VAT return system is also being prepared so that small businesses can file their returns without the need for intermediaries.

Revenue under pressure

Tax collection this year has been hit by instability in the banking sector, leading to weaker corporate tax receipts. A reduction in the development budget has also slowed revenue flows.

Even so, the NBR expects tax collection to grow by about 16 per cent in the first five months of FY2025–26.

Khan added that amendments to the VAT law are underway to simplify compliance and support the wider automation drive.