NBR falls short of revenue target despite 15pc growth

Staff reporter :

The National Board of Revenue (NBR) has again fallen short of its revenue collection target. In the first four months of the 2025-26 fiscal year (July–October), the NBR collected Tk 1,19,478 crore, against a target of Tk 1,36,697 crore, leaving a shortfall of Tk 17,219 crore or 12.6 percent.

Despite missing the target, revenue collection has grown by 15.54 percent compared to the same period in the 2024-25 fiscal year, when Tk 1,03,409 crore was collected.

Analysts attribute the shortfall to a sluggish economic environment, slower business and trade activity, and lingering impacts from punitive measures and administrative reshuffles within the NBR.

Economist M Helal Ahmed Joni researcher of Change Initiative said, “Macroeconomic activity has slowed. Imports and exports are not rising as expected, leading to lower customs duties. VAT collection is weak due to underreported sales, and structural issues persist, including narrow tax coverage and inefficiencies in tax administration.”

Former bureaucrat Firoz Mia added that while structural challenges limit NBR’s capacity, the recent punitive measures and large-scale transfers of officials following the NBR’s agitation have further dampened revenue collection.

Data shows deficits across key sectors: VAT: Collected Tk 46,878 crore against a target of Tk 48,146 crore, a shortfall of Tk 1,268 crore (2.63percent). VAT collection grew 24.78 percent compared to Tk 37,567 crore in the same period last year.

Income Tax: Collected Tk 37,849 crore against Tk 47,433 crore, leaving a deficit of Tk 9,194 crore (19.54percent). This represents a 16.11 percent growth from Tk 32,597 crore last year.
Customs: Collected Tk 34,751 crore against Tk 41,507 crore, a shortfall of Tk 6,756 crore (16.27percent). Compared to Tk 33,243 crore in the previous year, this shows a growth of 4.53 percent.

A senior NBR official said, “Revenue collection has been relatively low due to the slowdown in business and trade. We are confident collection will pick up towards the end of the year. Efforts are ongoing to expand tax coverage, improve compliance, prevent evasion, and recover lost revenue.”

The NBR’s original revenue target for FY 2025-26 was Tk 4,99,000 crore. On November 10, the Budget Monitoring and Resources Committee revised it upward to Tk 5,03,000 crore, increasing the target by Tk 4,000 crore. To meet this, the NBR must collect Tk 3,83,522 crore over the remaining eight months.

Former NBR Chairman Dr Abdul Majid criticized the target-setting process, stating that targets often exceed NBR’s capacity and need structural reform.