NBR trails Tk 660bn behind revenue target after 11 months

Tax authorities must collect Tk 1.36 trillion in June to hit its yearly target

Bangladesh’s National Board of Revenue (NBR) has fallen Tk 660.78 billion behind its revenue target in the first 11 months of FY2025, despite mid-year hikes in duties and taxes on goods and services.

To reach the revised goal of Tk 4.63 trillion, tax collectors must bring in Tk 1.36 trillion in June alone.

The shortfall was discussed on Thursday at a revenue review meeting of the Customs and VAT divisions at NBR headquarters in Dhaka, presided over by Chairman Abdur Rahman Khan.

A media statement was issued for the first time after such a meeting, detailing collection progress up to May.

As per the statement, receipts from July to May totalled Tk 3.28 trillion against a target of Tk 3.94 trillion --meeting 83.10 percent of the goal.

Year-on-year growth stood at 6 percent.

Earlier in the week, a similar session reviewed direct tax collection.

That meeting drew attention after some officials, protesting against the chairman, skipped attendance or joined anonymously with names such as “Donald Trump”, “Elon Musk”, “Mayer Doa Sanitary", and “Tejgaon Egg Traders Association”.

Some reports suggested bot accounts were used to inflate the attendance count.

In response, Thursday’s meeting required all online participants to keep their video and audio on.

Officials from Dhaka, including commissioners and directors general, attended in person, while officials from outside Dhaka joined virtually.

INCOME TAX

To increase direct tax collection, the previous government had withdrawn several exemptions.

The interim administration has continued on that path, but revenue from this sector has yet to reflect the impact.

A review of income tax and travel tax data shows a 37.27 percent shortfall against the 11-month target.

From July to May, against a target of Tk 1.71 trillion, the collection stood at Tk 1.08 trillion.

VAT followed, with a 26.73 percent shortfall despite mid-year hikes on over 100 goods and services.

From July to May, against a target of Tk 1.71 trillion, the actual VAT collection stood at Tk 1.27 trillion.

The customs sector, covering imports and exports, brought in Tk 928.34 billion, while the target was set at Tk 1.2 trillion--marking a 22.97 percent gap.

The original annual target was set at Tk 4.8 trillion, but was revised down to Tk 4.63 trillion due to sluggish revenue flow.

While collection growth has since returned, the tax office is still facing a significant gap heading into the final month of the fiscal year.