Bangladesh to expand VAT net to include more business sectors

Bangladesh's Finance Minister Amir Khosru Mahmud Chowdhury announced in parliament that the government intends to bring a wide array of business sectors under the value-added tax (VAT) net. This expansion is slated for the 2026-27 fiscal year, aiming to broaden the tax base.

The list of sectors targeted for inclusion is extensive, encompassing grocery stores, beauty parlors, ready-made garment and clothing retailers, confectioneries, and cosmetic shops. Additionally, sellers of plastic and ceramic household goods, shoe stores, hardware product sellers, decorators, and retailers of mobile phones, air conditioners, refrigerators, ovens, and other electronic goods will be subject to VAT. The plan also extends to paint and hardware shops, sanitary fittings and tiles shops, corrugated sheet sellers, rod and cement sellers, furniture shops, and establishments selling sweets, as well as restaurants.

During the question-and-answer session, the minister responded to a query from reserved-seat Member of Parliament Selina Sultana. The session was presided over by Speaker Hafiz Uddin Ahmad. The minister also provided figures on current VAT revenue collection, stating that it amounted to Tk 1,41,586 crore in the fiscal year 2024-25.