Bangladesh’s revenue grows but misses fiscal targets in early 2025-26
Bangladesh’s revenue collection for the first four months of the 2025-26 fiscal year has shown growth, though it remains below target. Between July and October 2025, total revenue reached Tk 119,478 crore, an increase of 15.54% compared to the same period last year. However, the amount still fell short by Tk 17,219.97 crore against the government’s projections.
The National Board of Revenue (NBR) set an ambitious target of Tk 4,99,000 crore for the full fiscal year, equivalent to about 8% of the country’s GDP. In the first four months, customs duties brought in Tk 34,751 crore, a 4.53% rise from the previous year but Tk 6,756 crore below expectations. VAT collection also climbed by 25.78%, reaching Tk 46,878 crore, though it missed the target by Tk 1,269 crore.
The government’s revenue performance reflects both growth and ongoing challenges. While collections from VAT, customs, and income tax have risen, they continue to lag behind targets. The dominance of indirect taxes in revenue generation raises concerns about economic inequality, particularly as Bangladesh struggles with a low tax-to-GDP ratio. These factors will likely shape fiscal policies and borrowing decisions in the coming months.
