NBR targets revenue stuck in litigation
With a revenue collection deficit of approximately Tk16,000 crore in the first two months of the fiscal year, the NBR is exploring avenues to reclaim significant funds through the resolution of pending cases.
The National Board of Revenue (NBR) is intensifying efforts to recover revenue that is currently tied up in litigation as part of its strategy to meet fiscal targets.
With a revenue collection deficit of approximately Tk16,000 crore in the first two months of the fiscal year, primarily due to an economic slowdown and political instability, the NBR is exploring avenues to reclaim significant funds through the resolution of pending cases.
During a meeting with field-level officials in Agargaon today, newly appointed NBR Chairman Abdur Rahman Khan urged officials to take effective measures to recover this stuck revenue, as per sources.
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The meeting also reviewed revenue collection data for the first two months of the current fiscal year.
Sources indicate that about Tk40,000 crore is currently entangled in legal disputes. The NBR chairman instructed relevant officials to finalise preparations for the Appellate Tribunal and the High Court Division to expedite these cases and recover a significant amount of revenue for the government treasury.
Abdur Rahman also stressed the need to curb tax evasion, enhance audit activities, and incorporate more taxable individuals and institutions into the tax system.
A senior NBR official told The Business Standard, "Instructions have been given to prioritise the recovery of revenue stuck in litigation. The chairman has emphasised bringing taxable individuals and institutions under the tax net and stopping evasion."
According to NBR sources, revenue collection has significantly declined, falling by nearly Tk16,000 crore compared to the target and by approximately Tk5,000 crore relative to the same period last year. During the first two months, revenue collection totalled just over Tk41,000 crore against a target of nearly Tk57,000 crore.
The political changes following the student-led mass uprising have slowed economic activities and decreased imports, contributing to the reduction in revenue collection.
In a related development, the NBR has requested a visiting delegation from the International Monetary Fund (IMF) to reduce revenue collection targets for income tax and customs.
As part of a $4.7 billion loan approved in early 2023, the IMF has imposed over 30 conditions on Bangladesh, one of which includes raising the tax-to-GDP ratio by 0.5% annually until 2026.
