The government has proposed making VAT registration or the Business Identification Number (BIN) mandatory for opening business bank accounts in a move aimed at expanding the Value Added Tax (VAT) net and increasing revenue collection, reports BSS.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury made the proposal while presenting the national budget for the 2026-27 fiscal year in the Parliament on Thursday.
In his budget speech, the finance minister said initiatives have been taken to amend the law to make VAT registration compulsory for opening bank accounts for business purposes as part of efforts to broaden the VAT base.
He said the measure would bring more business entities under the formal tax system and help increase revenue collection.
The minister also proposed amendments to the VAT and Supplementary Duty Act to enhance revenue earnings.
He also proposed amendments to various schedules of the Value Added Tax and Supplementary Duty Act, 2012 to increase revenue collection and improve the effectiveness of the tax system.
The finance minister also proposed duty and tax exemptions on import of raw materials and components used in production of lithium-ion and sodium-ion batteries to promote environment-friendly battery industry and further strengthen the renewable energy sector.
A new notification is being proposed to provide duty and tax exemptions on the import of materials required for the production of environment-friendly lithium-ion and sodium-ion batteries until June 30 of 2030 to encourage domestic manufacturing of such products, he said.
"To encourage domestic production of related items such as mounting structures, lithium cells, battery packs and energy storage systems, I propose withdrawing these concessions after June 30, 2028, with the expectation that local production will meet demand by then," he said.
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