MD ASADUZ ZAMAN

Riding mainly on monthly growth in December and January, revenue collection in the first seven months of fiscal year (FY) 2024-25 returned to positive territory.

However, the National Board of Revenue (NBR) now faces a herculean task of meeting its annual tax target amid ongoing economic headwinds.

Even during stable times, the revenue board has never met annual tax targets. To meet the annual target, revenue collection this year will need to grow by as much as 28 percent in the remaining five months -- a goal mired by an economic slowdown and other challenges.

But unlike previous years, failing to come close to the tax target this time could jeopardise budget support from multilateral lenders, and the fourth tranche of the ongoing International Monetary Fund (IMF) loan package.

In simpler terms, the government is not in a position to make a deep cut to the annual tax target in the revised budget, leaving the revenue administration with an almost impossible task.

Between July and January, the NBR collected Tk 195,860 crore, a 2.96 percent year-on-year increase. All revenue sectors -- income tax, value-added tax (VAT), and customs -- saw positive growth. January marked the second consecutive month with 7 percent monthly growth.

Despite this, the tax administration remains far from its required 21 percent growth target to meet the Tk 480,000 crore goal.

Multilateral lenders, including the World Bank, the Asian Development Bank, and the IMF, However, he “But