BM Desk : The National Board of Revenue (NBR) has firmly stated that it will not raise taxes or withdraw existing tax exemptions midway through the fiscal year, despite calls from the International Monetary Fund (IMF) to boost revenue.

During recent meetings in Dhaka with the visiting IMF delegation, NBR officials emphasized that any changes to taxation would follow the government’s existing policy framework and timeline. They cited current economic realities, saying abrupt hikes could disrupt fiscal discipline and fuel inflation.

NBR Chairman Abdur Rahman Khan told The Business Standard that the IMF had urged Bangladesh to raise taxes, but the government would not go beyond its established policy. “We already have a policy framework for taxation, and we will not raise taxes beyond that policy just to meet their demand,” he said.

Khan noted that VAT and supplementary duties were already increased on about 100 goods and services in January following IMF recommendations, but similar measures could not be repeated frequently. “If that becomes the norm, it would be difficult to maintain fiscal discipline,” he added.

An NBR official who attended the IMF meeting on 30 October said that while structural reforms under the IMF programme would continue, no new taxes would be introduced before the next budget. He explained that most goods and services are already taxed at the standard 15% VAT rate, while essentials such as basic food items, remittance services, poultry, fisheries, and healthcare remain at lower rates or exempt.

Applying a uniform VAT rate now, he warned, would intensify inflationary pressures. The government instead plans to gradually transition to a unified VAT system.

The IMF’s $4.7 billion loan package for Bangladesh includes around 30 reform conditions, covering taxation, banking, subsidies, and governance. However, slow revenue growth has drawn the lender’s concern. Bangladesh’s tax-to-GDP ratio fell from 7.4% in FY24 to 6.6% in FY25, well below the IMF’s target of around 8%, prompting renewed scrutiny of the NBR’s performance.