The National Board of Revenue (NBR) has recorded a notable 26% increase in VAT registrations over the last six months (August 2024 – January 2025) reportedly.
Despite this growth, revenue collection from value-added tax (VAT) has experienced a 5.45% decline, totaling Tk55,177 crore in the first half of the 2024–25 fiscal year.
As per NBR data, total revenue collected from July to December amounted to Tk1.56 lakh crore, a decrease from Tk1.65 lakh crore in the first half of FY24, reflecting a 6% decline year-over-year.
In a recent statement, the NBR credited the leadership of its chairman for introducing a series of forward-thinking measures aimed at expanding the VAT network and bringing new taxpayers under the Value Added Tax (VAT) and Supplementary Duty Act.
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The statement highlighted that VAT registrations in August 2024 stood at 4,228 – marking a 25% drop from the 5,644 registrations in August 2023, largely due to disruptions caused by the July revolution. However, the NBR’s proactive interventions in the subsequent months fueled a steady increase in registrations from August 2024 to January 2025.
To further encourage VAT compliance, the NBR has revised the annual turnover threshold for VAT eligibility, reducing it from Tk3 crore to Tk50 lakh, as stated in the press release. Additionally, businesses generating up to Tk30 lakh annually continue to be exempt from VAT.
The NBR also emphasized a renewed focus on efficiency, instructing all field-level commissioners to adopt a service-driven approach to facilitate new registrations and enhance revenue collection.
Moreover, officials who demonstrate outstanding efficiency, expertise, and innovation in boosting VAT registrations will receive special recognition, further motivating efforts to strengthen compliance and broaden the VAT framework.
Through these strategic initiatives, the NBR remains committed to expanding the tax base while ensuring a balanced approach to revenue generation and taxpayer inclusivity.
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