NBR Reports
The National Board of Revenue (NBR) is experiencing a revenue shortfall of 58,242 crore taka in the first eight months of the fiscal year 2024-25 July to February in comparison to the target. Revenue collection has grown by a meager 1.76% throughout this time. Which is not consistent with the rate of economic expansion.
The revised revenue target for the first eight months of current fiscal year was 2,80,059.21 crore taka, based on statistics from the NBR. But the actual amount collected was 2,21,817.09 crore taka, which was more than 58,000 crore taka less than the aim.
NBR officials claim that a decline in imports, political unpredictability, and the strengthening currency have all had a detrimental effect on revenue collection.
The current fiscal year is seeing a large revenue loss for the National Board of Revenue(NBR) with several categories performing inconsistently:
- Decrease in Import Revenue: The amount of money received from imports is 64,439 crore taka, down 1.30% from 65,288 crore taka the year before. This drop reveals issues facing the import industry that have added to the total income deficit.
- Growth in Local Tax Revenue: On the plus side local taxes, such as VAT and excise duties have witnessed a rise in revenue. With current collections standing at 84,223 crore taka up from 82,402 crore taka the year before. This indicates improved performance in domestic tax collection, representing a rise of 2.21%.
- Growth in Income Tax and Travel Sector Revenue: These two sectors have seen an increase in revenue, collecting 73,154 crore taka as opposed to 70,280 crore taka the previous year. Although it hasn’t completely closed the revenue gap, this 4.09% growth shows encouraging trends in these areas.
Contributing Factors to the Revenue Deficit
The NBR continues to experience a sizable revenue shortfall in spite of growth in some industries. A decline in imports, a rise in the value of the dollar, and political unpredictability all have a detrimental effect on total income collection.
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