Written by The Banking Post
Bangladesh’s recent reforms in income tax, value-added tax (VAT), and customs laws are designed to expand fiscal space, modernise tax administration, and support the country’s long-term development goals, speakers said at a seminar on Wednesday.
They stressed that automation, stricter compliance, and professional advisory services will be vital in guiding businesses through the changes, which are expected to reduce compliance burdens for taxpayers.
The Institute of Chartered Accountants of Bangladesh (ICAB) organised the seminar on the Finance Ordinance 2025 via Zoom, with National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan attending as chief guest. NBR members AKM Badiul Alam (Tax Policy) and Mohammad Mobinul Kabir (Custom Policy & ICT) joined as special guests.
In his welcome remarks, ICAB President NKA Mobin said the ordinance reflects a strategic effort to raise the country’s tax-to-GDP ratio through automation and infrastructure expansion. “This is essential for creating the fiscal space required to fund Bangladesh’s ambitious development goals in renewable energy, agriculture, and critical infrastructure,” he noted.
Keynote speakers highlighted major revisions in VAT and customs rules, including:
- Businesses can now adjust VAT deducted at source (VDS) through returns, cutting compliance time.
- VAT deduction will be exempted for invoices issued via PKI or POS machines with Business Identification Numbers.
- The period for claiming decreasing adjustments has been extended to six tax periods.
- VAT non-deduction facilities are now limited to the first tier of subcontractors.
- Relief has been introduced for commercial importers paying advance tax, along with conditional VAT exemptions on locally manufactured medicines and essential goods.
- Zero-rating has been applied to certain services provided to non-residents.
- Customs reforms will exempt transport contractors importing inputs for export-oriented goods.
Speakers concluded that while the reforms simplify compliance, they also demand greater accountability, automation, and professional expertise to unlock their full potential.
