The Cabinet on Monday gave the final approval, subject to vetting by the Legislative and Parliamentary Affairs Division, to a draft ordinance seeking to restore the provision requiring taxpayers to submit VAT returns within 15 days after the end of each tax period instead of every three tax periods.
The clearance was given to the draft Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2026 at the cabinet meeting held with Prime Minister Tarique Rahman in the chair at the Bangladesh Secretariat.
The draft law proposed amendment to section 64 of the Value Added Tax and Supplementary Duty Act, 2012, to bring greater dynamism to revenue collection at the field level.
Under the proposed provision, VAT returns will have to be submitted within 15 days of the end of each tax period, instead of the existing provision allowing submission within 15 days after the end of every three tax periods.
If the 15th day falls on a public holiday, the return may be submitted on the next working day.
The proposed amendment also provides additional time for certain taxpayers. Government, semi-government and autonomous bodies, banks, insurance companies, and individuals or entities submitting zero returns will be allowed to submit their returns within 20 days of the end of every tax period.
The Internal Resources Division placed the draft ordinance before the cabinet for both approval in-principle and final approval.
