Tax & Regulatory · Bangladesh
The Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025 was an important moment in Bangladesh’s indirect-tax regime. It changed turnover thresholds, adjusted selected supplementary-duty provisions and revised local-trader VAT treatment. Its current legal status is equally important: the official legislation record states that it was repealed by the Value Added Tax and Supplementary Duty (Amendment) Act, 2026.
At a glance
Legislative status
The 2025 Ordinance took effect on 9 January 2025. The official record now lists its 2026 repeal.
Turnover thresholds
The text amended the two section 16 figures from BDT 5 million to BDT 3 million, and from BDT 30 million to BDT 5 million.
Practical reading
Classification, current schedules, notifications and the date of the transaction control the analysis for a particular import or supply.
What the 2025 Ordinance did
The instrument, formally Ordinance No. 01 of 2025, did not replace Bangladesh’s VAT and Supplementary Duty Act, 2012. It amended specified provisions and schedules within that framework. For an investor, importer or operating business, the key question is therefore time-sensitive: which provision, schedule, notification and classification governed the transaction in question?
Historical rates and thresholds can still matter for audits, contract pricing and pre-repeal transactions. They are not, by themselves, a statement of today’s law.
The principal changes in 2025
Turnover thresholds in section 16
The Ordinance changed the two annual-turnover figures in section 16 from BDT 5 million to BDT 3 million and from BDT 30 million to BDT 5 million. The current registration or enlistment position must be checked against the consolidated law and implementing materials.
Supplementary duty across goods and services
The text revised selected import-stage and supply-stage entries, including categories involving food products, tobacco, paints, detergents and specified services. The statutory schedule and the correct tariff or service description remain the starting point for analysis.
Local-trader and truncated/base VAT entries
The 2025 text altered selected schedule entries and moved the general local-trader supply rate from 5% to 7.5%, while separately amending other product and service treatments. Because the Ordinance was repealed, those figures should be treated as historical context rather than live advice.
What a business should do now
Where a VAT or supplementary-duty issue affects a current supply, import, audit position or contract, begin with the law in force for the relevant date. The historical Ordinance may still be relevant, but it must be read in its period-specific context.
- Fix the relevant date.Identify the transaction, import or supply period before selecting a legal instrument.
- Classify precisely.Confirm the tariff heading or statutory service description; commercial shorthand is not enough.
- Check the live framework.Review current legislation, schedules, notifications and SROs rather than relying on a historic announcement.
- Preserve the rationale.Retain the primary source, classification basis and calculations supporting the position taken.
For broader commercial and compliance issues, see TRW & Co’s practice areas, browse our Tax & Regulatory insights, or contact the firm to discuss the facts of a particular matter.
Frequently asked questions
Is the 2025 Ordinance still in force?
No. The official legislation record states that it was repealed by the Value Added Tax and Supplementary Duty (Amendment) Act, 2026. It may still matter for a period when it was operative, but it should not be used as a standalone statement of current law. Official record ↗
Did it reduce VAT thresholds?
Its text amended the two section 16 annual-turnover figures from BDT 5 million to BDT 3 million and from BDT 30 million to BDT 5 million. Current registration and enlistment treatment must be checked against the consolidated regime. Official text ↗
Can a business use this article to determine a current VAT rate?
No. A current rate depends on the law in force for the relevant period, the applicable schedule or notification, and the correct classification. This is general legal information, not advice for a particular transaction.
Primary materials and context
Primary source · 02Official full text of the OrdinanceLegislative and Parliamentary Affairs Division ↗
Commentary · 03Contemporaneous professional analysisDFDL, 27 February 2025 ↗
Reporting · 04NBR withdrawal and reduction reportingBangladesh Sangbad Sangstha, 22 January 2025 ↗
This publication is general legal information. It is not legal advice and should not be relied upon without advice tailored to the facts, jurisdiction and time period concerned.