NBR misses Jul-Nov revenue target despite 15% growth

The National Board of Revenue (NBR) recorded a 15 percent year-on-year growth in tax collection during the first five months of the fiscal year 2025-26 (FY26), but still fell short of its target by nearly Tk 24,000 crore.

According to provisional data released yesterday, the revenue authority collected Tk 1,48,137 crore between July and November, up from Tk 1,28,946 crore in the same period last year.

All three major revenue streams contributed to the growth. Local-level value-added tax (VAT) collection rose by about 22 percent to Tk 58,231 crore from Tk 47,743 crore a year earlier.

Income and travel taxes increased by 17 percent to Tk 47,881 crore, while customs duties from international trade grew by 5.28 percent to Tk 42,864 crore, supported by higher imports after restrictions were eased.

Meanwhile, the government, in a meeting last month, decided to raise the revenue collection target for the fiscal year by 5 percent to Tk 5,88,000 crore, going against the usual practice, following stronger-than-expected revenue performance in the July-September period, The Daily Star reported on November 21.

 The NBR's new target has been increased to Tk 5,03,000 crore.

"This is a highly ambitious target. Usually, the government revises its target downward every year, but this year is an exception," one NBR official said on condition of anonymity.

Senior officials expressed optimism that the gap between actual collection and the target may narrow, noting that the authority has expanded its workforce by adding around 10 new tax zones across the country.

"We have to pursue our goal in the greater interest of the country," a top official said.

The revision comes at a time when Bangladesh is struggling to finance development projects amid a persistently low tax-to-GDP ratio, one of the lowest globally.