Revenue earning rises to Tk 4.2 trillion, shortens predicted gap

Taxmen in their last-minute efforts managed to mobilise around Tk 4.20 trillion for the just-concluded fiscal year, shortening an anticipated large gap to Tk 800 billion against the revised budgetary target, officials say.

Economists had projected the revenue gap could exceed Tk 1.0 trillion in the fiscal year 2025-26 because of sluggish economic activity. But tax officials say they could contain the shortfall through "intensified enforcement, improved planning and stronger compliance measures".

The National Board of Revenue (NBR) taskforces on income tax, value-added tax (VAT) and customs met Wednesday with Finance Adviser Dr Rashed Al Titumir to formulate a medium-term strategy for achieving yet higher revenue target for this fiscal year (FY2026-27).

Speaking to The Financial Express, Dr Titumir said the government would prepare a three-year revenue strategy identifying both the sources of revenue and priority areas for public spending.

"It is clearly evident that revenue collection has gained momentum from mid-February through June under the present government's leadership," he says about the democratic transition after political upheavals.

"The tax base has been broadened while loopholes causing revenue leakage are being plugged," he adds.

Newly appointed NBR Chairman Ahsan Habib has said revenue collection reached Tk 4.12 trillion as of Wednesday and was expected to increase by another Tk 100 billion once end-of-year adjustments were completed.

"The NBR started working actively from day one under its own Budget Implementation Plan (BIP) for FY2026-27. We have prepared written strategies to achieve the revenue target," he says.

He expects that the revenue board would continue working in full vigour with the existing taskforces which had achieved significant success over the past three months.

According to him, the customs and VAT wings have already finalised their revenue-mobilisation plans, while the income-tax wing is expected to complete its strategy shortly.

Former NBR chairman Abdur Rahman Khan says the FY2026-27 budget has introduced several measures aimed at encouraging investment while strengthening revenue mobilisation.

"The measures, including the turnover-based VAT regime, the 0.2-percent advance income tax on supplies to retailers and stronger actions against tax evasion, will contribute to higher revenue collection," he hopes.

He mentions that online income-tax-return submissions had exceeded 4.6 million as of June 30, describing it as a major milestone in the country's tax digitisation drive.

The government has set a tax-revenue target of Tk 6.04 trillion for the NBR in FY2026-27, to help finance an ambitious budget worth Tk9.38 trillion.

For FY2025-26, the original target was Tk 4.99 trillion, which was later revised up to Tk 5.03 trillion. Based on the projected collection of Tk 4.20 trillion, the revenue shortfall would stand at around Tk 800 billion.

For FY 27, target for VAT-and income-tax wings has been set at Tk 2.23 trillion each, followed by Tk 1.57 trillion for customs wing.

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