The National Board of Revenue (NBR) aimed to collect 26,991.37 million taka in February, the eighth month of the 2024-25 fiscal year. So far, they have successfully gathered 26,751.42 million taka. This brings the total revenue collected during the first eight months (July-February) of the current fiscal year to 221,817.9 million taka. The NBR had set a revised target of 280,592.21 million taka for this period, resulting in a revenue shortfall of 20.79 percent by the end of the first eight months.

Despite this shortfall, the NBR has experienced an increase in revenue compared to the same timeframe in the previous fiscal year. The organization reported a 0.9 percent growth in revenue collection for February alone, compared to the same month last year. Additionally, the total revenue growth for the first eight months of this fiscal year stands at 1.76 percent when compared to the July-February period of the 2023-24 fiscal year.

Yesterday, the NBR published the revenue collection figures for January and February. The data indicates that income tax, travel tax, VAT, and customs duties related to the import-export sector were the primary contributors to the significant revenue shortfall against the target during the first eight months of the fiscal year.

The income tax and travel tax sectors experienced the most significant deficits among various categories. The National Board of Revenue (NBR) had set a revised target of collecting 99,301 crore 35 lakh taka during the first eight months of the fiscal year. However, the actual collection amounted to 73,154 crore 68 lakh taka. Specifically, 71,914 crore 58 lakh taka was gathered from income tax, falling short of the target of 97,791 crore 75 lakh taka. In terms of travel tax, the collection target was Tk 1,509.35 crore, but only Tk 1,240.10 crore was achieved.

For local value-added tax (VAT) collection, the revised target for the same eight-month period was Tk 69,103.63 crore, yet the revenue reached only Tk 50,844.77 crore.

Acknowledging the shortfall in VAT collection, NBR Member (VAT Implementation and IT) Mohammad Belal Hossain Chowdhury stated to press that revenue collection up to February of the current fiscal year is relatively higher than in the previous year. However, reduced activity in development projects has led to a decrease in the 7.5 percent VAT collected from this sector. Additionally, the government’s directive to British American Tobacco to relocate its factory from Mohakhali has halted production, resulting in a significant drop in VAT revenue from cigarettes.

From July to February, customs, VAT, and supplementary duties at the import and export levels collected 64,439 crore 41 lakh taka against a target of 79,778 crore 85 lakh taka, leading to a deficit of 15,339 crore 44 lakh taka.

NBR officials noted that customs and tax exemptions were granted for imports of essential goods and fruits at various stages following the mass uprising, which has also contributed to the lower revenue collection.

Yesterday, the National Board of Revenue (NBR) published the revenue collection figures for January of the current fiscal year. The target for revenue collection for that month was set at 37,332 crore 60 lakh taka, while the actual collection amounted to 35,424 crore 91 lakh taka.

NBR officials are optimistic that revenue collection will continue to grow in the near future. They attribute this anticipated increase to various government initiatives aimed at enhancing revenue collection. Once these initiatives begin to take effect, they expect to see a rise in the rate of revenue collection.

In discussing the overall situation, NBR Chairman Md. Abdur Rahman Khan stated, “We have implemented several measures to expand the tax base, recover outstanding taxes, and identify tax evasion. Revenue officials are now more motivated in their collection efforts. Consequently, we expect the pace of revenue collection in the country to pick up.”