The National Board of Revenue (NBR) of Bangladesh has launched a door-to-door campaign to improve VAT collection due to an ongoing shortfall. VAT collection by October reached Tk 411.92 billion, falling short of the target of Tk 519.04 billion. By November, this figure rose to Tk 458.31 billion, but it still did not meet expectations. The NBR has set a target of Tk 1,591 billion for the 2024-25 fiscal year, and the NBR chairman has urged business owners to pay pending VAT dues and ensure proper registration.
In response, the NBR is introducing Electronic Fiscal Devices (EFDs) across major cities to curb VAT evasion, automating VAT transfers to the NBR server. The devices aim to track daily transactions and minimize fraud, particularly in retail and wholesale businesses, where significant VAT evasion occurs. Despite past efforts with e-cash registers, enforcement has been weak due to collusion, but the new system is expected to enhance revenue collection.