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Bangladesh waives VAT on local supplies to boost export competitiveness
Daily FT
|October 14, 2025
AS Sri Lanka’s exporters face disruption from the removal of the Simplified VAT (SVAT) scheme here at home, competitor Bangladesh has moved in the opposite direction by waiving value-added tax (VAT) on locally sourced raw materials and services used for exports to strengthen competitiveness.
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The move is also intended to prepare Bangladesh exporters for the loss of preferential trade status after its graduation from the least-developed country (LDC) category in 2026.
According to a Financial Express report, in a recent directive, Bangladesh's National Board of Revenue (NBR) clarified that local sourcing of raw materials and services by exporters under a "Deemed-Export" provision will be eligible for VAT exemption, subject to specific documentation and regulatory conditions.
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