Revenue Collection by NBR in July Sets a Record, Yet Falls Short of the Established Goal
The National Board of Revenue (NBR) Announces Revenue Collection Boosting Measures
The National Board of Revenue (NBR) of Bangladesh has announced plans to take "effective initiatives" to boost revenue collection, following a shortfall in July 2025. The revenue collection in July fell short of the target by approximately Tk3,000 crore.
Despite the shortfall, the NBR recorded its highest-ever monthly revenue in July, amounting to Tk27,247 crore. Value-Added Tax (VAT) generated the highest revenue, amounting to Tk11,352 crore, a 32.45% increase from the same month last year. Revenue from import taxes totalled Tk9,602 crore, showing a 18% year-on-year growth. Income tax and travel tax collections stood at Tk6,295 crore, marking a 22% year-on-year increase.
Towfiqul Islam Khan, a research fellow at the Centre for Policy Dialogue (CPD), stated that the current revenue target is difficult to achieve with the existing capacity of the NBR. He emphasized the need to broaden the tax base, reduce evasion, and introduce systemic reforms to achieve the revenue target.
In an effort to strengthen the efforts of employees engaged in revenue collection, the NBR announced various initiatives in August. These include issuing new audit guidelines to enhance transparency, efficiency, and accountability, streamlining online tax return filing by removing the requirement for extra supporting documents, and collaborating closely with other government and law enforcement agencies to recover lost or forgone revenue.
Towfiqul also highlighted the importance of automation of the revenue collection system for comprehensive reforms. He also mentioned that the deficit will persist and the target set by the IMF may not be achieved.
The NBR has set a revenue collection target of Tk4.99 lakh crore for FY26, which is about 35% higher than the actual collection of the previous fiscal year. A large portion of revenue comes from government development expenditures, VAT, and other taxes.
The NBR primarily collects revenue from import taxes, VAT, and income tax. The revenue collection in July 2024 was Tk21,916 crore, showing over 24% year-on-year growth.
In response to the shortfall, the NBR urged taxpayers to comply with the law and pay the appropriate amount of tax. The NBR's efforts to boost revenue collection are expected to continue in the coming months as the country aims to meet its revenue targets for FY26.
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