The National Board of Revenue (NBR) has drawn up an ambitious plan to increase revenue collection through expanding the tax net, identifying tax evasion using digital technology, recovering outstanding dues and restructuring the revenue administration as Bangladesh faces mounting fiscal pressures and persistently low tax-to-GDP ratio.
The integrated action plan covering income tax, value-added tax (VAT) and customs was presented at a meeting of the Parliamentary Standing Committee on the Ministry of Finance, outlining a series of measures to strengthen revenue mobilisation and improve tax compliance.
The proposed initiatives include matching taxpayers’ declared income and assets with databases maintained by different government agencies, identifying individuals and businesses at high risk of tax evasion, introducing online tax assessments and hearings, automating tax refunds and strengthening the recovery of outstanding revenue.
For the fiscal year 2026-27, the government has set a total expenditure target of Tk 9.38 trillion against a revenue target of Tk 6.95 trillion. The NBR is expected to collect Tk 6.04 trillion, accounting for the overwhelming majority of the government’s targeted revenue.
According to the NBR presentation, the board contributes approximately Tk 86 out of every Tk 100 collected in government revenue. Although revenue collection has increased significantly over the past two decades, keeping pace with the growing size of the economy and rising public expenditure remains a major challenge.
The NBR has outlined three broad strategies to improve revenue collection: a ‘Recovery Strategy’ to accelerate revenue growth, a ‘Restoration Strategy’ to expand the tax base and create a business-friendly environment, and a ‘Reconstruction for Acceleration Strategy’ to improve administrative transparency, accountability and voluntary tax compliance.
The board aims to raise average revenue growth to 16 percent and increase the tax-to-GDP ratio to 15 percent by 2030. Rather than relying primarily on higher tax rates, the plan places emphasis on bringing more taxpayers into the formal system, accurately assessing existing taxpayers’ incomes and reviewing the justification for tax exemptions.
Expanding the tax base remains a key challenge
Bangladesh’s low tax-to-GDP ratio remains one of the major weaknesses of its fiscal system. Despite economic growth, tax collection has not increased proportionately, leaving the government increasingly dependent on borrowing to finance development programmes and regular expenditure.
The NBR has identified the
