Published: 12:14 AM, 22 April 2026
NBR faces Tk 98,000cr revenue shortfall as businesses push for duty cuts ahead of budget
Bangladesh's National Board of Revenue (NBR) is running nearly Tk 98,000 crore behind its revised collection target for the current fiscal, even as it posted over 11 percent growth in revenue.
The gap came into sharp focus Tuesday as business associations urged the tax authority to slash import duties ahead of the 2026-27 national budget.
Business groups met NBR Chairman Abdur Rahman Khan in the office for pre-budget consultations, presenting a raft of proposals aimed at nurturing domestic industry and reducing reliance on imports.
Three associations led the charge: 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), reports UNB.
Their central demand is a steep reduction in import duties, supplementary duties and VAT on raw materials and components used in the electrical and electronics manufacturing sectors.
Specifically, they called for duties on inputs for electric fans, LED bulbs, circuit breakers, transformers and batteries to be slashed from the current 10-25 percent range to just 1-5 percent.
The battery industry also pressed for greater investment incentives in lithium-ion and sodium-ion technologies, as well as tax relief on used battery recycling areas the sector sees as critical to long-term industrial competitiveness.
The broader thrust of the proposals is to promote "Made in Bangladesh" manufacturing, shield small and medium enterprises from import competition, and keep consumer prices within reach of ordinary buyers.
NBR Chairman, while acknowledging the submissions, struck a cautionary note. "We need to move away from a culture of tax exemptions," he said, adding that while duty adjustments for business needs are possible, blanket exemptions create leakage in the tax system.
His remarks came against the backdrop of a yawning revenue shortfall. According to data published by NBR's Research and Statistics Wing, the board collected Tk 2,87,862 crore in the nine months through March 26 against a revised target of Tk 3,85,852 crore - leaving a deficit of nearly Tk 97,990 crore.
Despite the gap, year-on-year collection grew by 11.15 percent compared to the same period in fiscal 2024-25, offering some consolation as the government prepares to frame the next budget.
The National Board of Revenue (NBR) in Bangladesh, under the Ministry of Finance, is the primary authority for tax collection, contributing roughly 86% of total revenue for the national budget. For FY 2025-26, the NBR is targeting BDT 4.99 lakh crore in revenue, while battling a massive shortfall of nearly Tk 98,000 crore in the first nine months of the previous fiscal.
The National Board of Revenue (NBR) is the apex authority for tax administration in Bangladesh. It was established by the father of the nation Bangabandhu Sheikh Mujibur Rahman under President's Order No.
76 of 1972. Administratively, it is under the Internal Resources Division (IRD) of the Ministry of Finance (MoF). The Secretary, IRD is the ex-officio Chairman of NBR. NBR is responsible for formulation and continuous re-appraisal of tax-policies and tax-laws, negotiating tax treaties with foreign governments and participating in inter-ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration.The main responsibility of NBR is to collect tax revenues (primarily, Value Added Tax, Customs Duty, Excise Duty and Income Tax ). It works with three tax-type wings namely, Customs Wing, VAT Wing and Income Tax Wing. There are two more wings named IT wing and Research & Statistics wing under NBR
