The National Board of Revenue (NBR) registered 131,000 new value-added tax (VAT) payers in December through a special nationwide campaign aimed at expanding the VAT net and strengthening domestic revenue mobilisation.

The achievement followed the observance of VAT Day on December 10 and VAT Week from December 10 to 15, 2025.

This year’s VAT Day theme ‘Register on time, pay VAT properly’ highlighted the government’s emphasis on compliance, transparency and timely registration.

In line with the theme, the NBR launched a special VAT registration drive from December 10 to December 31, setting a target of bringing at least 100,000 previously unregistered businesses under the VAT system.

Through intensive surveys and field-level registration drives, including activities on public holidays, the campaign surpassed its target within the month.

NBR officials said all 12 VAT commissionerates across the country participated in the drive carrying out inspections and outreach activities to identify eligible but unregistered enterprises.

Before the interim government took office, the total number of VAT-registered entities stood at 516,000.

With the latest additions, the figure has risen to 775,000, reflecting a significant expansion of the VAT base in a short time.

VAT remains the largest single source of government revenue, ahead of customs duty and income tax. Official data show VAT accounted for 38 percent of total revenue collection in the last fiscal year.

The NBR said further expansion of the VAT net holds strong potential to increase overall revenue without raising tax rates.

To support this effort, the government has amended the VAT law by lowering the annual turnover threshold for mandatory VAT registration from Tk 3 crore to Tk 50 lakh, aiming to bring more small and medium-sized businesses into the formal tax system.

The revenue authority has also introduced several technology-based measures to simplify VAT compliance.

These include online VAT registration, electronic payment of VAT directly to the government treasury, online submission of VAT returns through the eVAT system, and an automated process for refunding excess VAT directly to taxpayers’ bank accounts.

Besides, the NBR is developing a simplified VAT return format for small businesses to reduce compliance burdens and encourage voluntary participation.