The government has outlined an ambitious roadmap to generate nearly Tk 1.0 trillion in additional Value-Added Tax (VAT) revenue in the fiscal year 2026-27, with a strong focus on narrowing compliance gaps, curbing tax evasion, and leveraging economic growth.
According to official projections, the largest share of the additional revenue is expected to come from reducing the VAT compliance gap.
The National Board of Revenue (NBR) plans to bring around 10,000 high-risk businesses under intensified scrutiny, targeting an additional Tk 380 billion in VAT collection through enhanced compliance and enforcement measures.
NBR Chairman Ahsan Habib presided over the meeting, which was organised to present the VAT Wing's revenue mobilisation strategy for the current fiscal year.
NBR Member (VAT Implementation and IT) Syed Musfequr Rahman presented a detailed plan for achieving the VAT Wing's revenue target of Tk 2.57 trillion.
According to the plan, around 8,000 businesses identified as having significant compliance gaps or a high risk of VAT evasion will be brought under closer monitoring.
The NBR expects to recover an additional Tk 250 billion by detecting and preventing VAT evasion among these firms.
In a separate initiative, the VAT authority plans to scrutinise 2,000 large taxpayers that pay more than Tk 10 million in annual VAT.
This programme is expected to generate an additional Tk 100 billion beyond their regular VAT payments.
Together, the two enforcement drives are projected to yield Tk 350 billion in additional VAT revenue.
Other compliance measures are expected to contribute another Tk 30 billion, bringing the total additional VAT collection target from compliance efforts to Tk 380 billion.
According to NBR officials, the businesses will be selected from among VAT-registered entities with monthly transactions exceeding Tk 1 million.
The list is expected to include importers, real estate companies, manufacturers, firms engaged in local sales and supplies, e-commerce businesses, and other VAT-registered entities.
A senior NBR official who attended the meeting said a large number of VAT-registered businesses were found to have significant compliance gaps.
"We have analysed VAT-registered businesses and found that a large segment has substantial compliance deficiencies. If these gaps can be reduced, a significant amount of additional VAT can be collected," the official said, requesting anonymity.
The official identified the real estate sector as one of the key focus areas, noting that improved detection of discrepancies in property transactions could substantially boost VAT revenue.
He said the NBR had already detected around Tk 7.0 billion in unpaid VAT from a leading real estate company.
"We have already launched specialised enforcement activities. A dedicated team of officials has been assigned to detect VAT evasion in the real estate sector," he added.
The government's broader VAT revenue strategy includes several other major sources of additional revenue.
The tobacco sector is expected to contribute an extra Tk 120 billion from the bidi and cigarette industry.
The NBR also projects that a 10 per cent expansion in economic activity will automatically generate around Tk 200 billion in additional VAT revenue.
Another Tk 150 billion is expected to come from improved implementation of the Annual Development Programme (ADP) as higher public expenditure and development spending are anticipated to stimulate economic transactions and VAT collection.
To recover outstanding dues, the government has set a target of Tk 140 billion from arrears collection.
Of this amount, Tk 70 billion is expected to come from reducing interest calculation periods, while the remaining Tk 70 billion will be recovered from other outstanding VAT arrears.
Taken together, the measures are projected to generate nearly Tk 990 billion in additional VAT revenue, reflecting a multi-pronged strategy combining stronger tax administration, enhanced compliance enforcement, improved arrears recovery, and economic growth.
The government has set an ambitious revenue collection target of Tk 6.04 trillion for the NBR in FY27, about 47 per cent higher than the previous fiscal year's target, marking the largest annual increase since Bangladesh's independence.
Of the total, the VAT Wing has been assigned approximately 45 per cent higher than the previous year's target.
doulotakter11@gmail.com