Bangladesh Cabinet approves revised VAT law with 15-day filing deadline

The Bangladesh Cabinet has approved a draft VAT law introducing a mandatory 15-day window for taxpayers to file their returns, signalling the government's intent to tighten tax administration and enhance compliance mechanisms across the country.

The revised legislation represents an effort to modernise the existing VAT framework and reduce delays in tax processing that have previously hindered revenue collection. By establishing clear filing timelines, authorities expect to improve predictability for both businesses and the tax administration.

The new regulation will require registered VAT taxpayers to submit their periodic returns within the specified 15-day period, with provisions designed to accommodate legitimate requests for extensions under exceptional circumstances. The move is intended to bring Bangladesh's tax procedures into closer alignment with international standards.

The draft law now moves forward for further legislative processing and implementation. Tax officials have indicated that accompanying guidelines will clarify compliance requirements and penalty structures for late submissions to ensure uniform application across all sectors of the economy.

The Cabinet's approval reflects ongoing efforts by Bangladesh's revenue authorities to strengthen tax administration and increase the country's tax-to-GDP ratio through improved compliance and streamlined procedures.