FROM PAGE B4

this year could be lower than that forecasted by the World Bank.

Bangladesh’s imports stagnated over the past three or four years, with its total imports decreasing to $70 billion in 2023 from $90 billion in 2021.

“So, the NBR is not going to get enough tariffs from imports alone,” he added.

Citing recent moves by the interim government to reduce inflationary pressures by providing higher subsidies for various essential commodities, he said this could be another reason for lower revenue collection.

“Still though, I firmly believe that imports should not be considered as a key source of revenue collection,” Razzaque added.

NBR data shows that receipts from international trade declined 0.94 percent to Tk 41,155 crore.

Meanwhile, income tax receipts reduced by 0.94 percent to Tk 40,293 crore and the collection of value-added tax (VAT), the largest revenue source, fell 5.45 percent to Tk 48,082 crore.

Razzaque also said most businesses are registering lower sales as inflation has reduced the peoples’ purchasing power, and this translated to less revenue from VAT.

In this situation, lower revenue mobilisation has resulted in a tighter fiscal space that may force the interim government to curtail its development spending to avert a further economic downturn.

“Lower development spending also contributed to the decreased revenue collection.”

The implementation rate of the annual development programme (ADP) stood at 12 percent in the first five of FY25, as per data of the Implementation Monitoring and Evaluation Division (IMED).

Seeking anonymity, an NBR official acknowledged the reason for slow economic growth.

“We are currently facing hurdles in collecting revenue amid the government’s lower public spending, higher inflation and slow private sector credit growth,” the official said.

Meanwhile, the interim government has not slashed the revenue collection target set by its predecessor, the official added.

Finance Adviser Salehuddin Ahmed said in September that the FY25 revenue target would remain unchanged.

“The existing target is unrealistic. It is unlikely to be achievable this year,” Razzaque said.