Revenue collection drastically drops in both Dhaka's South City Corporation (DSCC) and Dhaka North City Corporation (DNCC) falling far behind to meet their target.
It happens due to a government change over and subsequent political instability. There is also clear administrative weakness and lack of public engagement. Sources said the city corporations failed to collect even half of their targeted revenue for 2024-25.
Both city corporation officials said administrative reforms are urgently needed to improve revenue collection. Many also emphasize the importance of motivating taxpayers through various channels. Otherwise, meeting revenue targets in future years will also be difficult, resulting in failure to deliver essential services to residents.
According to internal sources, DNCC had a revenue target of TK 1,647 crore for the 2024-25 fiscal but as of May 31, it had collected only TK 806 crore, just under 50 percent.
Similarly, DSCC had set a target of TK 1,338 crore but by the end of May, only TK 708 crore were collected, posting a shortfall of TK 630 crore.
DSCC officials reported 43-day protest by BNP leader Ishraque Hossain demanding the mayoral position paralyzed corporation activities, severely affecting the revenue department. Consequently, key sectors such as trade licenses, holding tax, and rent collections were significantly disrupted.
A senior DSCC official, requesting anonymity, said May and June were critical months for revenue collection. However, DSCC failed to meet its May target. "The reasons for this failure are widely known, and the government must also take responsibility," the official added.
Regarding the shortfall, DSCC CEO Md. Zahidul Islam said, "Due to the student-uprising in July and August 2024, we couldn't collect revenue for over two months. Additionally, the May-June movement demanding Ishraque Hossain as mayor also hindered collection."
Most sectors failed to meet targets. For DNCC, the largest revenue source is holding taxes but it mostly failed, It failed to collect any revenue from five sectors: market lease fees, rickshaw license fees, education/training centers fees, fair and trade show fees, and coaching center fees.
DNCC Administrator Mohammad Azaz said, "Following July uprising, revenue collection didn't proceed well, so we couldn't meet last year's target. We're trying to encourage taxpayers in many ways, including a fair organized recently..."
