Bangladesh Bank orders banks to follow new VAT law directions

Bangladesh Bank has directed all scheduled banks in the country to properly follow the new provision added to the Value Added Tax and Supplementary Duty Act, 2012, through the Finance Act 2026. The direction takes effect immediately. The central bank issued a circular letter on the matter yesterday. Its Banking Regulation and Policy Department 1 issued the letter.

The central bank addressed the direction to the managing directors and chief executive officers of all scheduled banks now operating in the country. The circular says banks must properly follow the new sub section (3), which the Finance Act 2026 added to section 4 of the Value Added Tax and Supplementary Duty Act, 2012. The central bank has given banks the necessary instructions on this matter.

Bangladesh Bank issued the direction under the power given to it by section 45 of the Bank Company Act, 1991. The circular says the direction will take effect immediately. The central bank has attached the relevant part of the Finance Act gazette to the direction. The authorities published that gazette earlier this year.