| HEADLINE |
|
NBR misses FY26 target by Tk 92,610cr
The National Board of Revenue (NBR) collected Tk 410,390 crore in the fiscal year 2025-26, falling Tk 92,610 crore short of its revised target of Tk 503,000 crore, according to preliminary estimates.
Despite missing the target, revenue collection increased by Tk 40,862 crore, or about 11 percent, from Tk 369,528 crore collected in FY2024-25.
None of the three major revenue sources�"income tax, value-added tax (VAT) and customs�"met their respective targets.
Income tax collection stood at Tk 142,827 crore against a target of Tk 186,110 crore, achieving 76.7 percent of the goal. VAT collection reached Tk 155,940 crore, or 83.7 percent of its target, while customs revenue totalled Tk 111,623 crore against a target of Tk 130,780 crore, achieving just over 85 percent.
The largest shortfall came from income tax, highlighting persistent weaknesses in tax administration, limited expansion of the tax base and widespread tax evasion, analysts said.
Economists attributed the overall revenue gap to lower imports, slower business activity, high inflation, weak consumer purchasing power and administrative inefficiencies within the NBR. They said these factors reduced customs duties and import-based VAT collections while limiting overall tax receipts.
Before the fiscal year ended, the NBR had projected a revenue shortfall of around Tk 88,000 crore and estimated total collections at about Tk 415,000 crore. Actual collections, however, fell below that projection.
Economists warned that the revenue deficit could put additional pressure on government finances, as domestic revenue remains the primary source of funding for development projects, social safety programmes and infrastructure spending. A wider revenue gap could force the government to rely more heavily on domestic and external borrowing, increasing future debt-servicing costs.
Despite the shortfall, the government has set a higher revenue target of Tk 604,000 crore for the NBR in FY2026-27.
Economists said achieving the new target will require structural reforms rather than higher tax rates. They stressed the need to broaden the tax base, improve the tax-to-GDP ratio, digitise tax administration, curb tax evasion, encourage voluntary tax compliance and create a more business-friendly environment alongside stronger economic growth.
They said sustained administrative reforms and improved tax governance would be essential if the NBR is to meet its more ambitious revenue targets in the coming years.
Loading...
Loading...
Also read
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
