Bangladesh Cabinet approves new VAT law with accelerated filing requirements

Bangladesh's cabinet has given the green light to a new draft VAT law that will require taxpayers to submit their returns within 15 days of the stipulated period, marking a significant tightening of compliance requirements for the country's business sector.

The revised legislation is designed to accelerate the tax filing process and improve the efficiency of value-added tax administration. Under the new framework, businesses will face stricter timelines for submitting their VAT documentation to tax authorities, reducing the window for delays and administrative backlog that has characterised the system in previous years.

The shorter filing window is expected to bolster government revenue collection and ensure more regular cash flow into the national exchequer. Tax officials have indicated that the expedited returns process will enable quicker processing and verification of VAT claims, facilitating faster refunds for eligible businesses while simultaneously strengthening oversight of tax compliance across sectors.

The draft law now moves forward in the legislative process and will require parliamentary approval before implementation. Stakeholders in the business community are expected to receive detailed guidance on compliance procedures once the law receives final clearance.