Government revenue collection in the first two months of the fiscal year 2023-24 in Bangladesh increased by nearly 15% year-on-year, reaching Tk 46,233 crore. This growth was primarily attributed to increased value-added tax (VAT) from multinational companies. VAT contributed Tk 17,940 crore, income tax Tk 12,100 crore, and customs duty Tk 16,192 crore, with growth rates of 19.34%, 16.39%, and 8.94%, respectively.
Approximately 50% of the VAT revenue came from companies, including multinational ones, listed under the National Board of Revenue’s Large Taxpayers Unit (LTU), Value Added Tax wing. VAT from LTU companies, particularly those involved in products like tobacco, increased by 27.78% to Tk 8,589 crore. VAT collection was boosted by various mega projects, such as the Bangabandhu tunnel and Matarbari thermal power plant. However, Dhaka’s VAT collection growth was modest, and customs duty suffered due to reduced imports.
The NBR aims to collect Tk 4,30,000 crore in the fiscal year 2023-24, with Tk 50,321 crore targeted for the first two months, while economist analysis suggests it may reach around Tk 3,70,000 crore, citing a lack of significant sector reforms and persistent inflation as contributing factors to VAT growth.
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