Revenue collection by the National Board of Revenue (NBR) suffered in July-September period – the first three months of the current 2024-25 fiscal year.

The total collection in this period saw a 6.1% fall compared to the same period last year.

According to data released by the revenue collecting authority, the total revenue collection target for the first three months of FY2024-25 was Tk96,499.90 crore, but it managed to collect Tk70,902.90 crore. In the last fiscal, the corresponding amount was Tk75,487.70 crore.

According to the data, the revenue collection target for September was Tk39,324 crore. But NBR managed to collect only Tk29,002.68 crore.

A senior NBR official told UNB, revenue collection is usually slow during this period of every fiscal year, but this time it has also been affected by the political upheaval in the wake of the Anti-Discrimination Students movement that started in the first week of July, eventually leading to a change in government and putting the country in a transition period that continues.

Throughout the month of July and particularly in the first week of August, the movement was at its peak leaving widespread violence and bloodshed in its wake, as the government tried to suppress it. There was even a curfew in place from 19 July to 5 August. Almost everything was closed, or heavily regulated.

These had naturally impacted the collection of customs and taxes, said the NBR official, who spoke on condition of anonymity considering the sensitivity of the situation.

The uncertainty in the business sector continued even after the change of government in the first week of August.

“Due to these reasons, the customs and tax officials said that they could not collect the desired revenue,” the official said.

A tax collection target of Tk4,80,000 crore in the 2024-25 fiscal year was fixed for NBR by the last government.

NBR officials feel that the pace of tax collection will pick up towards the end of the year.

It may be mentioned that Bangladesh is receiving loan support under a $4.7 billion programme of the International Monetary Fund (IMF).

Two major revenue-related conditions attached to the programme are: i) Increasing revenue collection by 1.5% of GDP every year, and ii) removal of all tax exemptions by 2027.

There is talk of a strategy to increase revenue collection that will be decided by next December.