B Mirror Report: The National Board of Revenue (NBR) is planning to make Value Added Tax (VAT) registration, or Business Identification Number (BIN), mandatory for opening bank accounts in the name of businesses as part of efforts to expand the country’s tax net.

The proposed measure is expected to be included in the national budget for the 2026–27 fiscal year. Businesses will also be required to submit monthly VAT returns against their BIN registrations.

A senior NBR official confirmed the development, saying the move aims to bring businesses with trade licenses but no VAT registration under the tax framework.

“We have recommended incorporating the provision in the upcoming national budget. Once fully implemented, thousands of small and large businesses will have to obtain VAT registration,” the official told Dhaka Post.

According to the official, many businesses avoid VAT registration due to procedural complexities and alleged harassment, while others deliberately remain outside the system to evade taxes.

“Our goal is to ensure businesses are automatically integrated into the tax system,” he added.

NBR sources said the provision could take effect from the next fiscal year if approved by the finance ministry. Existing business account holders may also be required to verify their BINs to continue operating bank accounts.

Officials believe the initiative will strengthen VAT management, improve revenue monitoring, and help verify the actual identity and transactions of businesses.

According to NBR statistics, Bangladesh currently has more than 800,000 VAT-registered entities with BINs, but only around 500,000 regularly submit VAT returns. In contrast, data from the Bangladesh Shop Owners Association indicates that nearly 7 million businesses in the country hold trade licenses.

Revenue officials say the government plans to integrate bank account information, VAT registration, and tax identification data into a unified digital platform. This would make it easier to monitor business transactions, track VAT return submissions, and identify risky financial activities.

However, officials stressed that simplified registration procedures and awareness campaigns would be necessary before implementing the new rules, particularly for small and medium-sized enterprises.

Since the introduction of the new VAT law in July 2019, obtaining an electronic Business Identification Number (e-BIN) has been mandatory for VAT return submissions. Businesses are required to file VAT returns by the 15th of each month.

Under the current VAT law, businesses with annual turnover below Tk 5 million are exempt from VAT registration. Businesses with annual turnover between Tk 5 million and Tk 30 million are subject to a 4 percent turnover tax, while larger businesses must pay regular VAT rates.

Failure to obtain an e-BIN can result in a fine of Tk 10,000 under existing regulations.