NBR faces Tk98,000cr revenue shortfall despite 11% growth
In March alone, revenue collection fell short of the target by around Tk26,000 crore, while growth slowed to just 2.67% compared to the same month last year.
Bangladesh's National Board of Revenue (NBR) is grappling with a record revenue shortfall of nearly Tk98,000 crore in the first nine months of the current fiscal year, despite posting more than 11% growth in collections.
According to NBR data, the tax authority collected Tk2,87,862 crore between July and 26 March against a revised target of Tk3,85,852 crore, leaving a deficit of about Tk97,990 crore – the highest on record for the period.
In March alone, revenue collection fell short of the target by around Tk26,000 crore, while growth slowed to just 2.67% compared to the same month last year.
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Economists attribute the slowdown to the Middle East conflict and sluggish economic activity at home.
Despite the overall 11.15% year-on-year growth, experts say the gap has widened partly due to overly ambitious revenue targets.
Sector-wise data shows import tax collection declined in March compared to the previous year, while VAT and income tax posted modest growth of 4.86% and 2.77% respectively.
With three months remaining in the fiscal year, analysts warn the total shortfall could exceed Tk1.25 lakh crore.
The revenue gap came into sharper focus during pre-budget consultations today (21 April), where business groups urged the NBR to reduce import duties to support local industries, reports UNB.
Three associations led the charge: the Accumulator Battery Manufacturers and Exporters Association of Bangladesh (ABMEAB), the Bangladesh Electrical Association (BEA), and the Bangladesh Manufacturers Association of Transformers and Switchgears (BMATS).
Their central demand is a steep reduction in import duties, supplementary duties and VAT on raw materials and components used in the electrical and electronics manufacturing sectors.
Specifically, they called for duties on inputs for electric fans, LED bulbs, circuit breakers, transformers and batteries to be slashed from the current 10–25% range to just 1–5%.
The battery industry also pressed for greater investment incentives in lithium-ion and sodium-ion technologies, as well as tax relief on used battery recycling areas the sector sees as critical to long-term industrial competitiveness.
The broader thrust of the proposals is to promote "Made in Bangladesh" manufacturing, shield small and medium enterprises from import competition, and keep consumer prices within reach of ordinary buyers.
NBR Chairman Abdur Rahman Khan, while acknowledging the submissions, struck a cautionary note. "We need to move away from a culture of tax exemptions," he said, adding that while duty adjustments for business needs are possible, blanket exemptions create leakage in the tax system.
His remarks came against the backdrop of a yawning revenue shortfall.
