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Revenue Strategy

NBR adopts 3-R strategy to harness revenue collection

National Board of Revenue (NBR) has framed a 3-R (Recovery, Restoration and Reconstruction) strategy to harness revenue collection by overcoming the existing challenges.

Under the strategy, investment in tax administration, skill development, system interoperability, risk management, taxpayer service, technology and compliance would act as catalysts in harnessing the realization of challenging revenue collection target by the NBR in the 2027 fiscal year, according to a NBR presentation before the members of the parliamentary Standing Committee on the Ministry of Finance last month.

Under Recovery, the strategy aims to achieve an average 16 percent growth in revenue collection, Restoration focuses on expanding the tax net and creating a business-friendly revenue environment while Reconstruction seeks to accelerate revenue collection through greater transparency and voluntary compliance.

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

To materialize the goal of realizing Taka 6,04,000 crore revenues in the FY27 by the NBR, the revenue board has also highlighted various sources from which it would collect the required revenues.

Of the total target, the Income Tax Wing has been assigned to fetch TK 2,23,480 crore, the VAT wing TK 2,23,480 crore and the Customs wing TK 1,57,040 crore.

“The NBR expects the combined measures across income tax, VAT and customs administration to help achieve the TK 6,04,000-crore revenue target for FY27,” a senior NBR official told BSS.

Overall, the revenue projection shows that the income tax authorities plan to raise collection through a combination of revenue growth, stronger action against tax evasion, broader withholding-tax coverage, changes in individual taxation and investment rebates, taxation of capital gains, enhanced compliance requirements and improved tax-case disposal.