The National Board of Revenue (NBR) is observing VAT Day on December 10 and VAT Week 2025 from December 10 to 15. As in previous years, the day will be celebrated with various programs. Giving special emphasis on VAT registration, this year’s theme has been set as: “We will register on time, and we will pay VAT correctly.”

In line with this theme, the NBR will conduct a special registration campaign across the country from December 10 to 31. This year’s target is 100,000 new VAT registrations. Currently, the number of VAT-registered entities in the country is 644,000.

According to NBR sources, 38% of the total revenue collected in the last fiscal year came from VAT. In the first five months of the current fiscal year, VAT collection increased by 22% compared to the same period last year. NBR believes that if VAT management can be further strengthened, revenue collection will increase even more.

The revenue paid by citizens is used to fund various public welfare sectors, including implementation of the Annual Development Programme (ADP), education, health, construction of road–rail infrastructure, debt repayment, social protection, agriculture, subsidies in electricity and industry, and more.

However, several challenges still exist in the VAT collection system. These include unregistered businesses, lack of full automation, ineffective rebate chain, excessive exemptions, manual audit procedures, and limitations in collecting VAT from e-commerce and digital platforms.

To tackle these challenges, NBR has already undertaken various initiatives such as online registration, online return submission, e-support, online payment, e-refund, e-audit, VAT smart invoice, and the introduction of a risk-based audit system to prevent VAT evasion.

NBR believes that fostering a culture of voluntary tax payment and reducing tax evasion are the keys to a sustainable revenue system. The organization has sought cooperation from consumers, businesses, industrial owners, and the media, stressing that a strong and modern VAT system is essential for building a developed and prosperous Bangladesh.