NBR pushes for wider VAT net, warns against status quo
BY Insider Desk
April 05, 2025

The National Board of Revenue (NBR) has directed officials to focus on expanding the Value Added Tax (VAT) base and moving away from traditional narratives of revenue “growth” as part of efforts to boost national revenue collection.
At a meeting in Dhaka on Thursday, NBR Chairman Md Abdur Rahman Khan urged VAT officials to intensify field operations and identify new VAT payers. “I do not want to hear the word growth anymore. I want to see the expansion of VAT net,” he said, according to an official present.
Khan warned of consequences for complacency and called for a mindset shift. “You have to change your attitude; otherwise, there is no need to be here anymore,” he reportedly told officials, adding that high performers will be recognized.
The NBR chairman expressed dissatisfaction with current VAT collection performance and called for “combing drives” to ensure every eligible business pays VAT. He stressed that compliant businesses must not be harassed.
The push follows recent protests against increased VAT rates imposed through ordinances in January. In response, the NBR revised rates for several items.
Khan reiterated the goal of introducing a single flat VAT rate across all goods and services—if businesses support the move. He criticized the current system as disorganized and claimed the strength of VAT had been undermined due to past distortions in the law.
“If applied properly, many businesses would face a VAT burden of less than one percent,” he noted.
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