Bangladesh’s National Board of Revenue (NBR) has set a target to raise the revenue-to-GDP ratio to 10.7 per cent by FY29 to strengthen domestic resource mobilisation and sustain economic development, the government’s Medium-Term Macroeconomic Policy Statement for FY27-FY29 said.
NBR tax revenue, 6.7 per cent of GDP in FY25, may rise to 8.8 per cent in FY27, 9.1 per cent in FY28 and 9.3 per cent in FY29.
The statement identifies increasing the revenue-to-GDP ratio as a key prerequisite for maintaining development momentum and addressing structural weaknesses in the economy. The ratio remains among the lowest among comparable economies, it observes.
The ratio was 8.3 per cent in FY24, before declining to 8 per cent in FY25 due to structural weaknesses in tax administration, tax exemptions on essential commodities aimed at containing inflation and lower import-related revenue amid global economic uncertainties.
NBR tax revenue, which accounted for 6.7 per cent of GDP in FY25, is projected to rise to 8.8 per cent in FY27, 9.1 per cent in FY28 and 9.3 per cent in FY29, according to domestic media reports.
The statement notes that total revenue figures include foreign grants, while non-NBR tax revenue is expected to remain between 0.3 percent and 0.4 percent of GDP during the period.
Higher domestic revenue mobilisation will reduce dependence on deficit financing and bank borrowing, complement the government’s contractionary monetary policy in controlling inflation and strengthen the economy’s resilience against domestic and external shocks, it adds.
Fibre2Fashion News Desk (DS)
