Md Asaduz Zaman

The government is planning a series of measures in the upcoming national budget to alleviate the tax pressure on individuals and businesses, including raising the tax-free income threshold and relaxing certain compliance requirements.

The upcoming national budget must outline a comprehensive roadmap to prepare for the country’s graduation from the least developed country (LDC) club in 2026, prioritising tariff rationalisation, tax reform, and sustainable fiscal policies, according to a leading business leader.

The interim government is set to slash the development budget for the fiscal year (FY) 2025-26 by 14 percent year-on-year, as it struggles with limited fiscal space and steers away from costly mega-projects.

Falling food prices over recent months have helped cool inflation further in April, according to the Bangladesh Bureau of Statistics (BBS), with economists attributing the easing of price pressures to post-festival effects.

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.

"We need a comprehensive review," said Mahfuz Kabir, research director of BIISS

The National Board of Revenue (NBR) has identified dozens of properties in Dubai owned by Bangladeshis, a senior official familiar with the matter has told The Daily Star.

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.