With reports suggesting that the government’s FY27 budget has set a revenue collection target of Tk 695,000 crore, we must question this aggressive and ambitious target. While ambition on its own is welcome, ambition without realism leads to one expected outcome: Disappointment.
To that end, it is well known that Bangladesh has a long history of missing revenue targets. Repeatedly, as the fiscal year comes to a close, we revise our revenue targets, yet inevitably, fail to reach even the reduced amount. What this reveals is not simply a technical shortfall, but a deeper cultural problem in fiscal planning.
Our tax‑to‑GDP ratio remains among the lowest in South Asia, and in FY25, this vital indicator dropped to a mere 6.8%. To say this is woefully inadequate for a country aspiring to sustain growth and improve the quality of life for the majority of its citizens is a gross understatement.
Yet instead of addressing the structural weaknesses in tax policy and administration, we continue to set lofty targets that are disconnected from capacity. The result, beyond the missed goals, is eroded credibility and a system that has failed to mobilize the resources needed for development.
Bangladesh must change this culture of unrealistic target‑setting. Raising the tax‑to‑GDP ratio requires broadening the tax base, modernizing collection systems, and most importantly, closing loopholes that allow powerful groups to evade tax responsibility.
It also requires sustained innovation. While we are seeing digital platforms and websites now to make compliance easier, more must be done to ensure people are encouraged to embrace them. Most importantly, we need political will to confront entrenched interests and build a fair, transparent system.
Our country cannot afford to keep setting targets that look impressive on paper but collapse in practice. We must move beyond numbers and build a culture of credible fiscal planning.
