Only 2% of businesses have VAT registration in Bangladesh: NBR chairman

Businesses in Bangladesh should be tax-compliant to boost revenue collection, as the country has one of the lowest tax rates in the world, National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan said today.

Only 5.5 lakh out of over three crore businesses—around 2 percent of the total—are registered for value-added tax (VAT) in the country, he said.

To address this, the NBR is conducting drives to bring tax-evading businesses under the VAT system, Khan added.

"Stronger enforcement measures, including direct inspections and warnings, will be taken to ensure compliance," he said.

He made the comments at a discussion on the upcoming national budget at the Rajshahi Chamber of Commerce and Industry (RCCI) building in Rajshahi city.

The government will take steps to make turnover tax more manageable for businesses with an annual revenue of over Tk 3 crore, Khan said.

Additionally, he defended the high taxation on tobacco products, explaining that increasing costs discourage the consumption of harmful substances.

At the event, the NBR chairman acknowledged the need for a balanced tax policy but stressed that revenue collection is crucial for national development.

The event brought together business leaders from the Rajshahi division, who urged the government to simplify taxation, provide export incentives, and reduce tax burdens on small and medium enterprises (SMEs).

Riaz Ahmed Khan, director of RCCI, stressed the need for a more business-friendly tax system.

"Tax procedures should be made easier and more acceptable. Incentives are crucial for export growth. The tax burden on SMEs should be reduced to provide them with more opportunities," he said.

Roziti Naznin, chairman of the Rajshahi Women Chamber of Commerce, called for district-based budget allocations to reduce gender and regional disparities.

"Discrimination against women in business still exists. We request that budget distribution be done on a district basis to reduce inequalities," she said.

RCCI Chairman Masudur Rahman Ringku suggested special measures to strengthen the country's foreign currency reserves and proposed comprehensive plans to manage foreign currency flow.