Tax revenue collection continues to experience a decline

Tax revenue collection continues to show negative growth in the current fiscal year, primarily due to the economic downturn and a sluggish import scenario.

The National Board of Revenue (NBR) reported a 1.03% decline in revenue collection for the July-October period compared to the same period last year.

Provisional data from the NBR reveals that total tax collection amounted to Tk 1.01 trillion in the first four months, down from Tk 1.02 trillion during the corresponding period in the previous year. The target for this period was Tk 1.32 trillion, which the NBR failed to meet, continuing the trend from previous months.

Among the three major tax categories, income tax grew by 1.78%, and import duties rose by 0.83%. However, VAT suffered the greatest setback, declining by 4.88%.

The income tax wing collected Tk 318.80 billion, against a target of Tk 452.43 billion, while VAT revenue totaled Tk 367.29 billion, falling short of its target of Tk 472.39 billion. Meanwhile, import duties collected amounted to Tk 326.71 billion, below the target of Tk 396.32 billion for the July-October period.

In October, the NBR collected Tk 270.72 billion, a slight increase compared to the Tk 268.47 billion collected in October 2023.