BM Desk : In order to generate an extra 57,000 crore taka in revenue for the fiscal year 2025–2026, the International Monetary Fund (IMF) has recommended hiking tax rates. Additionally, the group has called on the government to cut back on tax exemptions and assistance spending. The organization must meet a number of requirements in order to carry out the $4.7 billion loan deal from the IMF. Increasing tax collection and the National Board of Revenue’s (NBR) capabilities are two of them. It is important to remember that following an unanticipated tax hike at the start of the year, the NBR had projected an additional collection of over 12,000 crore taka from various commodities and services. But now, the IMF is recommending an additional tax hike.
Before releasing the fourth and fifth payments of the loan under the ongoing $4.7 billion loan program, an International Monetary Fund (IMF) delegation is scheduled to arrive in Dhaka on Saturday to assess the status of meeting different requirements. According to sources, the purpose of this visit might be to generate more money. On Sunday, after arriving in Dhaka, a number of talks with different government agencies would start. The Finance Department, National Board of Revenue (NBR), Power Department, Power Development Board, Bangladesh Energy Regulatory Commission (BERC), and Energy and Mineral Resources Department are among the departments the IMF delegation is expected to interact with on the next visit. Meeting with Finance Advisor Salehuddin Ahmed on April 17 will be the final day. This information was made public by the Finance Ministry.
It is worth noting that the loan program with the IMF started on January 30, 2023. After that, Bangladesh received three installments of money. The first installment of $476.3 million was released from the IMF on February 2, 2023. In December of the same year, the second installment of $681 million was released. The last third installment of $1.15 billion was released in June 2024. Bangladesh received about $2.31 billion in three installments. The loan disbursement is $2.39 billion. There is a problem before the fourth installment is released. However, the government hopes that the fourth and fifth installments will be received together next June. According to those concerned, the IMF delegation will emphasize a few issues in the upcoming meeting to release the two installments of the loan together. These are – reducing subsidies, increasing electricity prices, making the exchange rate market-based, collecting additional revenue at the rate of 0.5 percent of the gross domestic product (GDP) and separating the revenue administration from the NBR’s revenue policy, etc. In contrast, Bangladesh has been informed to the IMF that these conditions will be implemented. Regarding the IMF conditions, experts say that inflation has decreased somewhat. If electricity prices are increased as part of reducing subsidies, inflation may increase again. Therefore, the government will have to take a thoughtful decision to increase electricity prices. On the other hand, the revenue collection target has not been achieved so far. At least 57 thousand crore taka will have to be collected additionally. It is also said that tax exemptions will be reduced to comply with the IMF conditions.
