Bangladesh's revenue target falls short by Tk 1.04 lakh crore in 10 months

Bangladesh's revenue collection fell short of the target by more than Tk 1.04 lakh crore during the first 10 months of the current fiscal year, reflecting persistent economic challenges, slowing consumption, and weak business activity.

According to an updated report released by the National Board of Revenue (NBR) on Wednesday, the revenue shortfall stood at Tk 1,04,533.11 crore during the July-April period of FY2025-26.

The revenue collection target for the period was set at Tk 4,31,421.27 crore, while actual collections from income tax, Value Added Tax (VAT), and customs duties reached only Tk 3,26,928.16 crore.

Businesses are struggling with rising operational costs amid a prolonged economic slowdown, while high inflation has significantly eroded consumers' purchasing power, adversely affecting overall economic activity and government revenue mobilisation.

Despite the large shortfall, revenue collection posted a year-on-year growth of 10.60 per cent. During the same period of the previous fiscal year, NBR collected Tk 2,95,200 crore.

However, none of the three major revenue wings - customs, VAT and income tax - managed to meet their respective collection targets during the first 10 months of the fiscal year.

According to the report, customs revenue grew by 8.87 percent, VAT collection increased by 11.1 percent, while income tax receipts registered an 11.59 percent growth compared to the corresponding period of the previous year.

The NBR had set a target of Tk 45,608.77 crore for April, but actual collection stood at around Tk 39,600 crore. In April of the previous fiscal year, revenue collection was Tk 36,604.60 crore, resulting in a year-on-year growth of 6.71 percent this April.

During the month, customs and income tax collections recorded positive growth of 17.95 percent and 14.66 percent respectively. However, VAT collection posted a negative growth of 3.17 percent, indicating continued weakness in domestic consumption and trade activities.