Bangladesh’s revenue collection shortfall widened to Tk71,472 crore in the first eight months of the fiscal year, despite a double-digit growth, underscoring persistent weakness in economic activity.
The National Board of Revenue (NBR) collected Tk2,54,330 crore during July–February of FY2025-26 against a target of Tk3,25,802 crore, according to provisional data.
Officials attributed the widening gap to sluggish business activity since the start of the fiscal year, citing election-related uncertainty and a slowdown in new investment.
A large share of revenue is linked to development spending, but implementation has remained slow, with delays in bill payments further weighing on collections, officials said.
The implementation rate of the Annual Development Programme stood at 21.18 per cent in July–January.
Revenue mobilisation from the banking sector has also weakened, as declining public confidence slowed deposit growth. The sector typically contributes around 10 to 15 per cent of total revenue.
To boost collections, the NBR has formed three task forces to intensify monitoring. Chairman Abdur Rahman Khan said the impact of these measures is expected to become visible in the final four months of the fiscal year.
Overall revenue grew 12.36 per cent year-on-year to Tk2,54,330 crore, up from Tk2,26,346.72 crore in the same period a year earlier.
Value-added tax led growth, rising 14.83 per cent to Tk97,281.95 crore, followed by income tax, which increased 12.71 per cent to Tk85,136.06 crore.
Customs revenue grew at a slower 8.81 per cent to Tk71,912.27 crore.
Despite gains across all segments, collections remained well below target, reflecting weak domestic demand, subdued imports and compliance gaps.
Economists warned the persistent shortfall could complicate fiscal management, particularly in financing public expenditure and development projects.
Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said structural reforms remain critical.
“These include curbing tax evasion, expanding the tax net, improving administrative efficiency, and taking strict action against corruption,” he said, adding that restoring business confidence is key to sustaining growth.
In February alone, the NBR collected Tk30,561 crore, up 8.16 per cent year-on-year but below the monthly target of Tk42,051.21 crore.
Within customs, import VAT rose 28.46 per cent during the month, while import duty fell 14.17 per cent, indicating shifts in trade patterns.
The mixed trend suggests that meeting the full-year target may remain challenging without a sharp pickup in economic activity in the coming months.
