Bangladesh’s government has withdrawn its proposal to introduce a fixed‑rate VAT for small businesses and to make VAT registration mandatory for all retail businesses from July 1. The decision also drops proposed tax hikes in the tobacco sector, while retaining a 35% supplementary duty on imported nicotine pouches. The withdrawal was enacted before the Finance Bill was passed on 29 June 2026.
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NewAge · 18 days ago
Bangladesh’s government has proposed a comprehensive VAT exemption package for startups, content creators and freelancers in the 2026‑27 national budget. The package includes a 15% VAT exemption on services provided by freelancers and content creators, full local VAT exemption for startups, and 15% VAT exemption on imported services and office rentals, with the measures set to remain in force until 30 June 2035.
BSS · 4 months ago
The National Board of Revenue (NBR) has extended the filing deadline for February 2026 Value Added Tax (VAT) returns to 29 March 2026. The extension was issued to address technical congestion and reduced processing speed in the E‑VAT system following public holidays. Taxpayers are now given additional time to submit their returns electronically.
The Business Standard · 4 months ago
Bangladesh's National Board of Revenue (NBR) has extended the deadline for filing online VAT returns for the January 2026 tax period by one week, until 22 February 2026. The extension was granted due to holidays and temporary disruptions to the e-challan system and VAT server. Taxpayers can now file through the e‑VAT system until the new deadline.
New Age · 4 months ago
Bangladesh’s National Board of Revenue has revised the VAT structure on liquefied petroleum gas (LPG), removing the 7.5 % VAT at local production and trading stages and the 2 % advance tax at import. A uniform 7.5 % VAT will now be applied at the import stage, effective 16 February 2026 and set to remain until 30 June 2026. The change is expected to lower the overall VAT burden on consumers by roughly 20 %.
New Age · 4 months ago
The National Board of Revenue (NBR) in Bangladesh has extended the deadline for filing online VAT returns via its e‑VAT system to 22 February 2026. The extension was granted to accommodate government holidays around Shab‑e‑Barat, a national election, and technical disruptions on 15 February. Taxpayers are urged to submit their January 2026 returns within the new period to avoid penalties.
The Business Standard · 5 months ago
The Advisory Council in Bangladesh has approved a waiver of the 7.5% VAT and 2% advance tax on domestic LPG at local production and trading stages, effective from 5 February 2026. The waiver retains only a 7.5% VAT at the import stage, aiming to reduce the overall tax burden on LPG and potentially lower retail prices.
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Key Takeaways
Retail businesses with an annual turnover of Tk 50 lakh or more must register for VAT; businesses below this threshold remain outside the VAT net.
On 29 June 2026, the government withdrew the proposal before the Finance Bill was passed.
The supplementary duty remains at 35%.
The proposed tax increase was dropped.
The package VAT plan was withdrawn.
Primary source
Read the full article at Bangladesh PratidinThis summary was published on VATfaqs.com on 29 June 2026. It relates to VAT developments in Bangladesh. The original source is Bangladesh Pratidin.
