Despite structural automation drives and efforts to expand the national tax net, the National Board of Revenue (NBR) has missed its revised collection target for FY by Tk87,527 crore.
According to official data released by the tax authority on Tuesday (August 4, 2026), total receipts across Customs, Value Added Tax (VAT), and Income Tax reached Tk415,473 crore, falling significantly short of the revised fiscal budget target of Tk503,000 crore.
However, total revenue receipts grew by 12.03% compared to FY25, when total NBR collections stood at Tk370,875.08 crore—demonstrating nominal expansion amidst persistent structural revenue constraints.
Net revenue collections missed the revised target of Tk503,000 crore by Tk87,527 crore.
Direct Income Tax registered the highest year-on-year expansion, growing 12.80% to reach Tk145,620 crore.
Value Added Tax (VAT) remained the largest overall revenue generator, yielding Tk157,734 crore (an 11.41% increase).
Import and export duties generated Tk112,119 crore, representing an 11.90% growth over the previous fiscal period.
Originally set at Tk499,000 crore, the FY26 target was revised upward to Tk503,000 crore before the fiscal year closed.
The government has tasked the NBR with collecting Tk604,000 crore in FY27—a target requiring an extraordinary growth rate of over 45%.
NBR Fiscal Collections Comparison (in Tk Crore)
Income Tax ──▶ FY25: 129,091 ──▶ FY26: 145,620 (+12.80%)
Customs ──▶ FY25: 100,198 ──▶ FY26: 112,119 (+11.90%)
VAT ──▶ FY25: 141,576 ──▶ FY26: 157,734 (+11.41%)
Revenue Category | FY 2024–25 Collection (Tk Crore) | FY 2025–26 Collection (Tk Crore) | Year-on-Year Growth (%) | Contribution to FY26 Total (%) |
Value Added Tax (VAT) | Tk141,576.00 | Tk157,734.00 | +11.41% | 37.97% |
Income Tax & Direct Revenue | Tk129,090.85 | Tk145,620.00 | +12.80% | 35.05% |
Customs & Import-Export Duty | Tk100,198.00 | Tk112,119.00 | +11.90% | 26.98% |
Total NBR Collection | Tk370,875.08 | Tk415,473.00 | +12.03% | 100.00% |
Macroeconomic implications
The Tk87,527 crore shortfall underscores long-standing structural weaknesses in Bangladesh’s fiscal architecture.
While a 12% growth rate reflects resilience against broader economic headwinds, total tax mobilization remains inadequate to support national development expenditures, worsening the government's fiscal deficit and forcing a reliance on bank borrowing.
Looking ahead, the NBR faces an ambitious fiscal task. For the newly commenced FY27, the revenue target has been set at Tk604,000 crore.
Achieving this benchmark will require an unprecedented collection jump of over 45% from the FY26 base—an outcome analysts view as unlikely without complete tax administration overhaul, aggressive anti-evasion enforcement, and widespread digital integration across corporate and retail tax systems.
"A revenue deficit exceeding Tk87,000 crore highlights the persistent disparity between realistic revenue generation and budgetary target setting," noted economic policy analysts.
"When NBR collections fall short by this magnitude, government budget execution faces immediate strain, forcing greater reliance on domestic debt markets or cutbacks in development infrastructure spending."
"To achieve a 45% collection growth in FY27, reliance on traditional tax collection methods will not suffice. The revenue authority must transition toward full operational automation, eliminate discretionary exemptions, and expand the direct tax net beyond traditional urban centers."
While the NBR achieved steady double-digit growth across direct and indirect tax channels in FY26, missing the target by nearly Tk87,527 crore highlights Bangladesh's entrenched tax-to-GDP deficits.
Meeting the ambitious Tk604,000 crore goal for FY27 will require deep policy reforms rather than incremental target adjustments.
