The National Board of Revenue (NBR) has set a target of bringing 100,000 new businesses under the value-added tax (VAT) net this month to mark VAT Day and VAT Week beginning tomorrow.

The initiative is part of a broader push to strengthen revenue collection, said NBR Chairman Md Abdur Rahman Khan at a press conference at the NBR headquarters in Dhaka today.

Presently, Bangladesh has 6.44 lakh VAT-registered entities and 3.44 lakh filed VAT returns in October

"Compared to the volume of business in the country, our VAT collection remains very low. We are working to recover the revenue that has been lost," he said.

He added that the long-awaited automated VAT refund system is now at its final stage. Once operational, it is expected to reduce delays and ensure greater transparency for businesses seeking refunds.

The NBR is preparing to launch a one-click e-VAT return system, so that small businesses can file returns on their own without intermediaries.

Khan said tax collection this year has been affected by instability in the banking sector, which has weakened corporate tax receipts. Additionally, a cutback in the development budget has led to lower-than-expected revenue.

The NBR chief said tax collection might grow 16 percent in the first five months of the fiscal year 2025-26.

He said amendments to the VAT law are underway to simplify procedures and advance the ongoing automation drive.