NBR targets Tk4.8 lakh crore revenue for FY25
In FY24, the initial revenue target was set at Tk4.3 lakh crore, with a projected growth rate of 30%. However, due to falling short of the target, the government revised it down by Tk20,000 crore to Tk4.1 lakh crore.
The National Board of Revenue (NBR) has set a revenue target of Tk4.8 lakh crore for the upcoming FY25, representing a 17% increase compared to the revised target of the current fiscal year, according to sources within the finance ministry.
In FY24, the initial revenue target was set at Tk4.3 lakh crore, with a projected growth rate of 30%. However, due to falling short of the target, the government revised it down by Tk20,000 crore to Tk4.1 lakh crore.
According to NBR data, the revenue authority's collection in the first nine months amounted to less than Tk2.6 lakh crore, with a growth rate of 15%.
Experts say the new target is achievable, but reaching it requires the NBR to enhance its capacity through proper automation.
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"If the government sets a revenue growth target of 17% for the upcoming fiscal year from the revised target, it will be achievable as the NBR has the potential for significant revenue collection," Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), told TBS.
"However, NBR needs massive digitisation and integration within its department and other agencies," he added. "If the government can mobilise more revenue, it will help reduce dependency on loans and increase public expenditure."
Currently, Bangladesh's public expenditure is about 12% of GDP, whereas India's expenditure is more than 22%, Mustafizur Rahman further said.
According to sources from the finance ministry, the target for income tax collection for FY25 is Tk177,600 crore, with a growth target of 20%; value-added tax (VAT) collection is targeted at Tk177,600 crore, with a growth target of 17%; and import tax is targeted at Tk124,000 crore, with a growth target of 12%.
"The target for the upcoming fiscal year will be achievable considering the current revenue growth trend, which is more than 15%," a senior NBR official told TBS on condition of anonymity.
"We are rigorously working to expand the tax net and have taken measures to curb tax evasion, which are already yielding results," he added.
He further said, "There is uncertainty over the increase in imports and the implementation of government development projects, which are associated with significant revenue."
Md Farid Uddin, former NBR member, told TBS, "There is no sign of economic recovery, which is currently in a slower position. If imports and the implementation of government development projects do not gain momentum, it will be tough for NBR to reach the comparatively easy target.
Reyad Hossain is a Senior Staff Correspondent at The Business Standard, who specialises in national and international trade, the readymade garments sector, labour issues, the National Board of Revenue (Tax, VAT, Customs) and local trade bodies. His career spans over a decade. He can be reached at reyad8198@gmail.com
