Revenue collection 21pc less than target in Jul-Jan FY25

Domestic revenue mobilisation from July to January of the current fiscal year lagged behind the target by nearly 21 percent, raising deep concerns about the macroeconomic landscape to meet the necessary expenditures, officials said.

In the first seven months, the revenue board collected 42.25 percent of the revised target of Tk 4.63 trillion for FY25.

To achieve the FY25 target, the National Board of Revenue (NBR) will have to collect Tk 535.27 billion per month from February to June.

The NBR collects Tk 300 billion per month on average. However, collection in the last quarter of every fiscal year jumps significantly due to the execution of development expenditures.

In January of FY25, the tax authorities collected Tk 354 billion, higher than the average monthly collection.

Revenue collection entered the positive growth trajectory, nearly 3 percent, in the first seven months compared to the same period of FY24, according to NBR's provisional data.

NBR collected Tk 1.95 trillion in January, higher than Tk 1.9 trillion mobilised in the same month of FY24.

The revised target until January of FY25 was Tk 2.46 trillion, reflecting a Tk 510.55 billion shortfall.

In January, collection grew by 7 percent compared to that of the same month in the previous fiscal year, but still lagged 5.11 per cent behind the target.

The interim government recently revised down the revenue collection target to Tk 4.63 trillion against the original target of Tk 4.8 trillion.

In the first seven months of FY25, revenue collection from VAT grew by nearly 4 percent, followed by income tax at 3.59 percent and import duties at 1.02 percent.

NBR data shows the income tax wing saw the highest shortfall of 27.5 percent against the target, followed by VAT at 16.41 percent and import-export tax at 17.45 percent.

For FY25, the income tax wing has the highest target of collecting Tk 883.95 billion, while it is Tk 880.08 billion for VAT and Tk 705.12 billion for import-export tax.

Until January of FY25, NBR collected Tk 735.66 billion in VAT, Tk 640.84 billion in income tax, and Tk 582.1 billion in import-export taxes.

To achieve this financial year's target, the revenue board will have to collect Tk 2.67 trillion in tax revenues in the next five months.