Implement New Income Tax Law Will Shift Focus from Import Taxes

The National Board of Revenue (NBR) in Bangladesh failed to meet its revised revenue target for the fiscal year 2023-24 despite achieving a growth of 12.17% over the previous year. The deficit stood at Tk 38,157 crore, with 90% of the revised target realized. The government had initially set a budget of Tk 761,685 crore and a revenue target of Tk 430,000 crore, later revised to Tk 410,000 crore.

Government investment in domestic revenue mobilization in Bangladesh has declined despite the urgent need to enhance tax collection. According to the Medium Term Macroeconomic Policy Statement 2023-24 to 2025-26, the cost of collecting Tk 100 in domestic revenue decreased from Tk 0.31 in FY2019-20 to Tk 0.25 in FY2020-21. Indirect tax collection costs fell from Tk 0.21 to Tk 0.13, while direct tax costs dropped from Tk 0.31 to Tk 0.21 during the same period.

National Board of Revenue (NBR) has been tasked with collecting BDT 4.88 lakh crore in the current FY 24-25, marking a 17% increase from the previous year. Of this target, tax and VAT collections 

The National Board of Revenue (NBR) has finalized a five-year strategic plan for customs, aimed at modernizing procedures, reducing trade costs, and improving revenue performance. The plan, covering 2024-2028, aims to enhance trade operations, infrastructure, legal reforms, and customs officials' capacity.

The National Board of Revenue (NBR) of Bangladesh plans to increase VAT collection by Tk11,450 crore by FY25 through various fiscal measures. Sectors targeted include tobacco, mobile telecom services, excise duty on bank deposits, sugary items, VAT deduction at source, and electronic goods.

The National Board of Revenue (NBR) in Bangladesh has exempted companies and firms from paying an environmental surcharge on owning multiple cars, focusing instead on individual taxpayers. Introduced in fiscal year 2023-24 to curb air pollution, the surcharge applies to second and subsequent cars owned by individuals, with rates varying by engine capacity.