The National Board of Revenue (NBR) registered more than 131,000 new businesses for value-added tax (VAT) in December, surpassing its initial target of 100,000.
The achievement follows a nationwide campaign to expand the tax base. In a statement released Saturday, the NBR confirmed that its 12 commissionerates conducted daily drives and surveys—even on public holidays—to bring more companies into the system.
Since the interim government took office, the total number of VAT-registered businesses has grown from 516,000 to approximately 775,000.
Despite this growth, NBR Chairman Abdur Rahman Khan noted during a press conference that the current VAT net is still too small compared to the scale of the country's economy. While 775,000 are registered, only about 644,000 are active VAT payers.
VAT is the backbone of the nation's public finances, accounting for 38 percent of total government revenue last year. To capture more of the business sector, recent legal changes lowered the mandatory VAT registration threshold. Old Threshold: Tk 30 million annual turnover and the New Threshold: Tk 5 million annual turnover.
The NBR is prioritizing technology to simplify compliance for business owners. Key digital initiatives include: e-VAT System: Online registration and digital return filing. Electronic Payments: Direct submission of payments to the state treasury. Automated Refunds: Excess payments are now refunded directly to bank accounts.
Officials emphasized that long-term success will require continued cooperation between the media, consumers, and the business community to build a transparent, technology-based tax system.
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