Revenue takes a hit in October as imports decline

Although revenue collection posted strong growth from July to September of fiscal year 2025-26, it stumbled somewhat in October, with experts on revenue matters identifying the decline in imports as the major reason.

However, because of strong growth in previous months, overall revenue collection for July to October still shows growth of over 15%.

According to the National Board of Revenue (NBR) data, total revenue collection – including income tax, value-added tax (VAT), and import tax – stood at Tk27,854 crore in October, which is only 2.22% higher compared to the same period of the previous fiscal year.

In contrast, during the three months from July to September, revenue growth averaged over 20%. Even in September alone, growth was nearly 20%.

NBR's data also shows that revenue collection during the four months of July to October increased by about 15.54% compared to the same period of the previous fiscal year. Despite this, revenue collection fell short of the target by Tk17,219 crore.

An analysis of the reasons behind the lower revenue in October shows that import tax collection dropped by 16% year-on-year. In contrast, income tax and VAT collections grew by around 11% and 10%, respectively. Meanwhile, import letters of credit (LC's) settlement fell significantly during the same period, Bangladesh Bank sources said.

A senior NBR official told The Business Standard that although income tax and VAT collection showed comparatively lower growth in October than in previous months, the negative growth in import tax was a major factor that dragged down overall revenue performance.

Almost 90% of Bangladesh's import tax is collected through the Chattogram Custom House. Attempts were made to reach Chattogram Customs Commissioner Md Shafi Uddin for comment, but he did not answer the phone.

Luftor Rahman, former NBR member and former commissioner of Chattogram Custom House, said, "A decline in import volume in any given month should not be a cause for panic, as there is no apparent reason for imports to fall at an unusually high rate. Growth may return to normal in the coming months."

According to Bangladesh Bank sources, import LC settlement in October fell by 11.31% compared to the same period of last year, while import LC openings dropped by 12%.

According to NBR-published data, the government collected over Tk1.19 lakh crore in revenue during the first four months (July-October) of FY26, compared to Tk1.03 lakh crore during the same period of FY25. The revenue collection target for the first four months of the current fiscal year was more than Tk1.36 lakh crore.