NBR to pursue “One NBR” architecture to raise tax-GDP ratio to 15pc by 2035

National Board of Revenue (NBR) has outlined a comprehensive reform and capacity-building roadmap to raise Bangladesh’s tax-to-GDP ratio from the current 6.8 percent to 15 percent by 2035 through pursuing the “One NBR” architecture focusing on widening the tax base, strengthening compliance, improving digital systems and integrating tax administration.

To attain this goal, the income tax, customs and VAT wing will work in an integrated manner like “One NBR” architecture to attain this desired goal.

The revenue authority presented the roadmap at the second meeting of the Parliamentary Standing Committee on the Ministry of Finance last month, highlighting the need to improve revenue productivity to keep pace with the expansion of government expenditure.

The NBR made detailed presentations on its capacity to meet government expenditure requirements, measures taken to narrow the tax-to-GDP gap, and assessment of the NBR’s organisational structure and necessary measures.

The NBR said achieving the FY2026-27 revenue target and raising the tax-GDP ratio cannot rely solely on higher tax rates. It requires a major expansion of the tax base, technology, data use and taxpayer compliance. It proposed an integrated “One NBR” architecture, bringing income tax, VAT and customs administrations into a more integrated taxpayer-management system.

The NBR has outlined a roadmap to increase the tax-to-GDP ratio from the current 6.8 percent to 15 percent by 2035.

The roadmap sets an interim target of 8.8 percent in the short term, followed by further improvement of 10 percent in the medium term before reaching 15 percent by 2035.

The presentation identified investment in revenue administration, skills development, system interoperability, risk management and taxpayer services as key drivers of revenue growth.

The NBR currently accounts for around 86 percent of the government’s total revenue, according to the presentation.

Talking to BSS, a senior NBR official said the revenue board is strengthening its institutional and operational capacity which has now become a state priority, particularly as Bangladesh seeks to increase domestic revenue mobilisation while supporting economic growth.

According to NBR data, the country’s tax-to-GDP ratio has remained mostly between 7 and 8 percent over the past 25 years. It reached around 10 percent during FY2011-12 to FY2014-15 before declining again, standing at 6.7 percent in FY2024-25 and 6.8 percent in FY2025-26.

The NBR said the current ratio remains among the lowest compared with South Asian and neighbouring countries, while the long-term target has been set at 15 percent by 2035.

The presentation said the NBR has analysed 25 years of data covering the size of GDP, government budget, revenue and development expenditure, NBR revenue collection and growth, government borrowing and tax-to-GDP trends in neighbouring countries to establish benchmarks and identify areas requiring reform.�"BSS