NBR revenue grows 21% in Jul-Aug of FY26 but misses target by Tk6,500cr
The NBR collected Tk54,423 crore in July-August, up from Tk45,005 crore in the same period of FY25. The target, however, was Tk61,000 crore.
Highlights:
- NBR revenue rose 21% year-on-year, but target missed
- Tk54,423 crore collected July-August, Tk6,577 crore below goal
- August revenue up 17.7%, still Tk3,715 crore short
- VAT grew 33%, mainly driven by cigarette sector earnings
- Import tax fell 4.5%; Chattogram Customs reported discrepancies
- Experts say 30% growth needed; FY26 target unrealistic
During the first two months of the current fiscal year 2025-26, the National Board of Revenue's (NBR) overall revenue collection increased by about 21% year-on-year. Yet, it still fell short of the target by Tk6,577 crore, according to data prepared by the revenue authority.
The NBR collected Tk54,423 crore in July-August, up from Tk45,005 crore in the same period of FY25. The target, however, was Tk61,000 crore.
In August alone, the revenue authority collected Tk27,174 crore, 17.7% higher year-on-year but Tk3,715 crore below the month's goal, according to NBR data.
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Experts opined that although a 21% revenue growth is normally considered satisfactory, this earning was compared with the months of July and August 2024, a period when the student-led uprising slowed economic activity. Therefore, the growth rate should not be a cause for complacency.
"If we consider the year-on-year revenue growth for the first two months, July and August 2025, it was expected to be 20% or more, as revenue earnings during the same period last year were lower than anticipated due to the economic slowdown," Towfiqul Islam Khan, additional research director at the Centre for Policy Dialogue (CPD), told The Business Standard.
"So, the first two months' revenue earnings this year are normal given the present economic situation," he said.
NBR officials, however, expressed satisfaction with the revenue earnings.
A field-level official of the VAT Wing of the NBR told TBS, "Our VAT earnings from the cigarette sector, one of the largest revenue-generating sources, are increasing at a satisfactory level and driving the overall growth of VAT collection exponentially."
NBR data also showed that VAT collection recorded over 33% year-on-year growth in the last two months, mostly driven by the cigarette sector.
In August, however, import tax fell by 4.5% compared to the same period of the previous year.
Chattogram Customs House is the main source of import tax earnings, as nearly 90% of the country's imports and exports are handled through this customs house.
Mohammed Shafi Uddin, commissioner of Chattogram Customs House, told TBS that the office recorded about 12% growth in August. However, around Tk900 crore that was already collected was not included in the August figure, resulting in the data showing a "de-growth."
Towfiqul, meanwhile, opined that it will be almost impossible for the NBR to achieve the FY26 revenue mobilisation target, as the actual growth requirement is about 30% over FY25.
In FY25, the NBR collected around Tk371,000 crore, while the government set a target of Tk499,000 crore for FY26, over 34% higher than the previous year's revenue collection.
"As the economic situation has yet to gain the expected momentum, and with the national election planned for next February, there is little chance of a significant increase in revenue collection," Towfiqul said.
He, however, added that the NBR could boost its earnings by curbing tax evasion through the implementation of automation, which he stressed is very important.
