The National Board of Revenue (NBR) has set a target to raise Bangladesh’s tax-to-GDP ratio to 10.5 percent by the fiscal year 2034-35, as part of its newly formulated 10-year revenue strategy, according to official documents.
Touted as a historic overhaul, the move has ignited debate over whether it will drive meaningful reform or merely deepen the layers of bureaucracy, given the NBR's persistent failure to meet its targets.
NBR still needs Tk 65,000cr per month to hit IMF target for FY25
The new target has raised eyebrows, given the underwhelming performance in revenue collection so far
The prospect of reduced tax benefits has rattled exporters, already wrestling with shifting global trade dynamics, including fresh US tariffs
After declining for each of the past three months, overall inflation in Bangladesh increased slightly in March, driven by an uptick in non-food prices, government data shows.
"Bangladesh generates a negligible amount of revenue from taxes levied on goods imported from the United States"
Business leaders and economists have called upon the government to initiate immediate high-level negotiations with the United States administration following President Donald Trump’s imposition of reciprocal tariffs, warning that failure to secure concessions could erode the nation’s competitive edge in its most lucrative export market.
The Bangladesh Bureau of Statistics (BBS) will form six expert committees to strengthen monitoring and enhance data credibility, one of its top officials said yesterday.
The tax target for the National Board of Revenue (NBR) has become more daunting against the backdrop of slowing collection as the economy continues to grapple with worsening consumer purchasing power due to stubbornly high inflation and declining private and public investment.
Wage growth slowed in February and was outpaced by inflation for the 37th consecutive month, further eroding real incomes and making low-income groups increasingly vulnerable amid rising costs of living.
For several months, food inflation had also remained in double digits
Inflation eased in February but remained above the 9 percent mark for the 24th straight month as the rising prices of goods and services continue to erode consumers’ purchasing power.
Riding mainly on monthly growth in December and January, revenue collection in the first seven months of fiscal year (FY) 2024-25 returned to positive territory.
Tax compliance is a vital pillar of a country’s economic stability. But in Bangladesh, despite various government efforts to widen the tax net, an alarming 65 percent of eligible taxpayers did not bother filing their returns within the deadline, which was extended thrice this year.
As of February 16 this year, only 39.86 lakh taxpayers out of around 1.14 crore TIN holders filed their returns
The finance ministry is likely to project that the country’s gross domestic product (GDP) will surpass the $500-billion mark for the first time in the upcoming fiscal year (FY), anticipating an economic rebound in FY 2025-26.
Implementation of the Annual Development Programme (ADP) stood at just 21.52 percent in the first seven months of fiscal year 2024-25 as public works were weighed down by political unrest.
