REJAUL KARIM BYRON

The government is working out an ambitious revenue target for the next fiscal year with a 20.07 percent increase from this financial year’s revised budget, aiming to raise the tax-GDP ratio that fell to 6.8 percent last year.

Every year, the finance ministry sets large targets for the National Board of Revenue (NBR), but they are missed by wide margins.

This time, measures are being planned to narrow the gap as much as possible, including introducing a single VAT rate and reducing tax exemptions.

The NBR’s revenue collection target for fiscal 2026–27 is expected to be Tk 6,04,000 crore.

To meet the current fiscal year’s Tk 5,03,000 crore target, the NBR must collect over 36 percent more than last year, though revenue grew only 12.4 percent in the first eight months.

If the trend continues, collections will need to rise nearly 40 percent to meet next year’s goal.

Steps planned by the government to increase collection include replacing multiple VAT rates with a single one. Exemptions under the Tax Expenditure Policy and Management Framework will also be reduced.

The other measures include identifying areas of tax evasion, rationalising VAT collection and structure, and implementing short-term action plans based on a task force report.

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