NBR's July revenue hits record, still misses target 

Infographics: TBS

The National Board of Revenue (NBR) recorded its highest-ever monthly revenue in July, the first month of FY26, at Tk27,247 crore, marking over 24% year-on-year growth. But the collection still fell short of the target by around Tk3,000 crore, according to NBR data released today (20 August).

NBR officials and experts said that revenue collection was relatively low in July 2024 amid a mass uprising, and some revenues were delayed due to the recent agitation of NBR officials. For these two reasons, revenue collection and year-on-year growth appeared higher in July compared to the same month in FY25.

According to NBR data, revenue collection in July of FY25 stood at Tk21,916 crore.

Regarding the shortfall, Towfiqul Islam Khan, a research fellow at the Centre for Policy Dialogue (CPD), told TBS, "The set revenue target is difficult to achieve with the current capacity of the NBR. As a result, this deficit will persist. Moreover, the target set by the IMF may also not be achieved."

"A large portion of revenue comes from government development expenditures, especially the Annual Development Programme (ADP), through VAT and other taxes. Since implementation is progressing slowly, and coupled with an uncertain business and investment climate, it is quite difficult for the NBR to boost revenue," he added.

Emphasising the need to broaden the tax base, reduce evasion, and introduce systemic reforms, Towfiqul said that achieving such a huge target would not be possible without comprehensive reforms and automation of the revenue collection system.

The NBR has set a revenue collection target of Tk4.99 lakh crore for FY26 — about 35% higher than the actual collection of the previous fiscal year. In its history, the NBR has never seen such a sharp year-on-year increase.

In a press release issued today, the NBR announced that it will undertake "effective initiatives" to boost revenue collection.

"To sustain this trend in the coming months, the NBR will take various effective measures to strengthen the efforts of employees engaged in collecting revenue," the statement reads.

However, the press release did not specify what measures would be taken. The NBR also urged taxpayers to comply with the law and pay the appropriate amount of tax.

The NBR primarily collects revenue from three sources: import taxes, value-added tax (VAT), and income tax.

According to its data, VAT generated the highest revenue in July, amounting to Tk11,352 crore — 32.45% higher than the same month last year.

Income tax and travel tax collections stood at Tk6,295 crore, up 22% year-on-year.

Meanwhile, revenue from import taxes totalled Tk9,602 crore, reflecting 18% year-on-year growth.