Bangladesh’s National Board of Revenue (NBR) is facing a revenue shortfall of nearly Tk98,000 crore against its revised target for the current fiscal year, even though overall collections have grown by more than 11 per cent year-on-year.
The gap was highlighted on Tuesday during pre-budget consultations, where business leaders urged the tax authority to reduce import duties ahead of the 2026-27 national budget.
Representatives from key industry groups, including the Accumulator Battery Manufacturers and Exporters Association of Bangladesh (ABMEAB), the Bangladesh Electrical Association (BEA), and the Bangladesh Manufacturers Association of Transformers and Switchgears (BMATS), met NBR Chairman Abdur Rahman Khan to present their proposals.
The business community called for significant reductions in import duties, supplementary duties, and VAT on raw materials used in the electrical and electronics manufacturing sector. They proposed cutting duties on inputs for products such as electric fans, LED bulbs, circuit breakers, transformers, and batteries from the current 10-25 per cent range down to 1-5 per cent.
Battery manufacturers also demanded incentives for lithium-ion and sodium-ion technology investment, along with tax relief for used battery recycling, which they described as essential for long-term industrial growth and competitiveness.
The proposals broadly aimed to strengthen local manufacturing under the “Made in Bangladesh” initiative, reduce dependence on imports, support small and medium enterprises, and help keep consumer prices stable.
However, the NBR chairman struck a cautious tone, warning against excessive reliance on tax exemptions.
He said while selective duty adjustments may be considered, broad exemptions could undermine revenue collection and create leakages in the tax system.
Official data shows that NBR collected Tk2,87,862 crore in the first nine months of the fiscal year against a revised target of Tk3,85,852 crore, resulting in a shortfall of about Tk97,990 crore.
Despite the deficit, revenue growth stood at 11.15 per cent compared to the same period in fiscal 2024-25, offering some relief as preparations begin for the upcoming national budget.
