Revenue Deficit Soars to Tk 42,000 Crore in Just Three Months

The National Board of Revenue (NBR) recorded a revenue shortfall of Tk 41,879 crore during the first three months of the 2026–27 fiscal year. The revenue collection target for the first quarter (July–September) was Tk 1,34,396 crore. However, the NBR collected only Tk 92,517 crore, around 31 per cent below the target.

According to NBR data, revenue collection fell short of the target in all three major sectors: value-added tax (VAT), income tax and import-export duties. VAT accounted for the largest share of the shortfall, contributing nearly half of the total deficit.

Meanwhile, NBR Chairman Ahsan Habib urged officials to intensify revenue collection efforts at a meeting last Thursday. Senior officials of the revenue authority attended the meeting. NBR officials said sluggish business and commercial activities had contributed to lower VAT and customs duty collection. An NBR official, speaking on condition of anonymity, said VAT collection was initially low because businesses were required to submit VAT returns every three months. However, the introduction of monthly VAT return submissions is expected to increase collection.

During July–September, the VAT collection target was Tk 49,405 crore, against which the NBR collected Tk 29,348 crore. This resulted in a shortfall of Tk 20,057 crore. VAT collection was also lower than in the same period of the previous fiscal year. The NBR collected Tk 35,000 crore in VAT during the first quarter of 2025–26.

The NBR also fell short of its targets for income tax and travel tax. The collection target for these sectors combined was Tk 42,726 crore, but actual collection stood at Tk 33,040 crore, leaving a shortfall of Tk 9,686 crore. Similarly, the target for import-export duties during the first quarter was Tk 42,265 crore. However, the NBR collected Tk 30,129 crore, resulting in a shortfall of approximately Tk 12,136 crore.

A sector-wise analysis shows that VAT was the largest contributor to the overall revenue shortfall, accounting for around 48 per cent of the total deficit during the three-month period. The combined shortfall in income tax and travel tax, and import-export duties, stood at approximately Tk 21,822 crore.

Despite missing the target, overall revenue collection increased slightly compared with the same period of the previous fiscal year. The NBR collected Tk 91,390 crore during the first three months of 2025–26, compared with Tk 92,517 crore in the corresponding period of the current fiscal year. This represents an increase of Tk 1,127 crore, or 1.23 per cent, year-on-year.

Former NBR chairman Mohammad Abdul Majid identified three reasons behind the overall decline in revenue collection. He said, “First, the economy is sluggish. Second, an ambitious revenue target was set, making collection appear lower. Third, there is some administrative stagnation within the NBR, which has affected revenue collection.”