The National Board of Revenue is considering requiring VAT registration (BIN) for opening or maintaining business bank accounts to expand VAT coverage. The proposed measure could be included in the next national budget, but has raised concerns among businesses and bankers.
Bangladesh’s National Board of Revenue (NBR) is considering making VAT registration, known as a Business Identification Number (BIN), mandatory for opening or maintaining business bank accounts, in a move aimed at widening the VAT net.
Under the proposed measure, businesses may be required to provide a BIN when opening or continuing current accounts. According to NBR sources, a provision on this could be included in the upcoming national budget and implemented from the next fiscal year, if approved.
The initiative targets businesses holding trade licences but not registered for VAT, to improve compliance and tracking turnover.
NBR data shows there are currently 7,92,000 VAT-registered entities in the country, of which about 5,00,000 file returns. Estimates from the Bangladesh Shop Owners Association indicate that nearly 70 lakh shops hold trade licences, while many businesses and service providers remain outside the VAT net and do not necessarily maintain current accounts.
Officials said small-scale businesses with low-value transactions are not the target, but entities with current accounts and higher transaction volumes.
However, business owners and bankers have raised concerns that mandatory BIN verification could discourage the use of banking channels. They warned that it may increase reluctance to open accounts or deposit funds due to compliance complexity and costs.
Some industry voices also suggested the government focus on strengthening direct tax collection instead of linking BIN requirements to bank accounts.
