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Published : 21 Mar 2025, 01:16 AM
The National Board of Revenue (NBR) continues to face challenges in meeting its revised revenue target despite lowering projections, as political unrest and economic slowdown hindered business activities.
According to updated NBR data released on Thursday, revenue collection in the first eight months of the 2024-25 fiscal year fell short by Tk 582.42 billion.
While this lags behind the revised target, it marks a 1.76 percent increase from the same period last 2023-24 fiscal year.
From July to February, NBR aimed to collect Tk 2.8 trillion but managed only about Tk 2.22 trillion.
The initial target for the entire fiscal year was Tk 4.80 trillion, which was later adjusted to nearly Tk 4.64 trillion.
During the same period last fiscal year, revenue collection stood at nearly Tk 2.18 trillion.
This year’s revenue is higher by Tk 38.46 billion.
To address the shortfall, the government recently raised value-added tax (VAT), supplementary duty, and excise duty on over a hundred goods and services.
However, following opposition from businesses, NBR rolled back several of these measures.
Economic challenges intensified after the 2024-25 budget announcement in June, with inflation, dollar shortages, and declining foreign reserves adding to the crisis.
Within two weeks of the budget's passage, the Anti-discrimination Student Movement began, culminating in the fall of the Awami League government in August.
Political turmoil and the collapse of law and order disrupted trade, imports, exports, and production, further slowing revenue collection.
Despite signs of recovery in December and January, revenue growth slowed in February compared with the previous months.
January saw a 6.65 percent increase from the previous year, slightly lower than December’s 6.68 percent.
February’s growth was nearly 1.76 percent.
August was the worst month for revenue collection, coinciding with the power transition.
For three days, the country had no government, an unprecedented situation in Bangladesh.
Following the government’s fall, law enforcement remained inactive due to attacks on police, leading to a fragile business environment.
Many businesses hesitated to clear imported goods from ports or transport them to warehouses and production sites, impacting August’s revenue.
That month, revenue collection declined by 14.30 percent year-on-year.
The second-worst month for revenue was November, despite no major economic shocks.
Revenue collection in November saw a negative growth of 8.95 percent.
