The National Board of Revenue (NBR) has once again fallen short of its revenue collection targets, a trend that has persisted for over a decade. With the current fiscal year's targets unlikely to be met, the NBR has urged the Finance Ministry to set more realistic goals for the next three fiscal years—2025-26, 2026-27, and 2027-28.In a letter addressed to the Finance Secretary, NBR Chairman Md Abdur Rahman Khan cautioned against setting unrealistic targets without thorough review and research. He emphasised the need to align these figures with the growth trajectories of Bangladesh’s production and trade sectors, ensuring that the NBR does not repeat past failures in meeting its objectives.
Unrealistic targets under scrutiny
According to the NBR, the revenue collection targets for the upcoming fiscal years have been set at Tk 5,64,411.92 crore for FY 2025-26, Tk 6,49,073.71 crore for FY 2026-27, and Tk 7,46,434.76 crore for FY 2027-28
The NBR argues that these projections appear unrealistic and lack grounding in comprehensive research. "It is imperative to determine estimates and projections based on the consistent growth trends observed in previous years," the letter read adding that failure to do so risks undermining public confidence in the institution.
NBR Chairman Abdur Rahman highlighted the negative consequences of consistently inflated targets. “The credibility of the NBR is being questioned due to repeated misses. This pattern must end to restore trust in the country's largest revenue-collecting body, he said".
Proposal for sustainable growth
To address this issue, the NBR suggests adopting a 15 per cent growth rate based on actual revenue collections from prior years. By doing so, both achievable targets and realistic expense forecasts can be established. Furthermore, field officer and employees would operate with renewed motivation, enhancing their effectiveness moving forward.
The letter concluded with a request to reassess and adjust the revenue targets realistically, considering the outlined challenges. "This approach will empower our workforce and ensure sustainable progress toward achieving future targets."
Expert opinion on enhancing capacity
Former NBR Chairman Muhammad Abdul Majid echoed the call for reform, saying, “Revenue collection remains lower than GDP despite considerable untapped potential for growth. The NBR needs to focus inward—invest in boosting efficiency and streamline processes to reduce unnecessary tax exemptions."
He stressed the importance of increasing institutional capacity, suggesting that targeted investments could significantly enhance performance while alleviating pressure stemming from unattainable benchmarks.
