Tax collection by the NBR surged in May, driven by robust value added tax (VAT) collection from domestic economic activities and higher income tax receipts, according to a provisional estimate. In the July-May period of the current fiscal year, taxmen collected Tk 30,481 crore, contributing to an 11% year-on-year growth in overall revenue collection. However, with an accumulated revenue of Tk 280,776 crore, the NBR still faces a shortfall of Tk 89,224 crore to reach its target of Tk 370,000 crore for the year. This would mark the 11th consecutive year of missed tax collection targets.
The NBR’s preliminary data indicates a 15% increase in taxes collected during the current fiscal year, primarily due to higher tax deductions at source and arrears. VAT receipts, the largest revenue source, grew by 13.65% to Tk 108,131 crore. Customs duty collection also rose by nearly 4% to Tk 83,685 crore. Furthermore, NBR has set ambitious targets for the upcoming fiscal year, aiming to collect Tk 4.30 trillion in revenue. However, economists express concerns about the pressure this will place on the existing number of taxpayers and anticipate shortfalls in revenue collection. Two leading think-tanks, the Centre for Policy Dialogue (CPD) and the Policy Research Institute (PRI), project significant shortfalls of Tk 750 billion and Tk 546 billion, respectively. To achieve the target, the NBR would need to achieve over 32% growth in tax-revenue collection.
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