The strong revenue collection momentum observed in Bangladesh during the first quarter of the fiscal year (FY2025-26) slowed significantly in October, primarily due to a sharp decline in imports.
Despite the October slowdown, overall revenue collection for the July-to-October period still recorded robust growth of over 15% compared to the same period in the previous fiscal year, thanks to exceptionally strong performance in the preceding months. Total revenue collected by the National Board of Revenue (NBR) including income tax, VAT, and import tax was Tk27,854 crore. This figure represents a marginal year-on-year growth of only 2.22%, a stark contrast to the average 20%+ growth seen from July to September.
While the four-month collection (July-October) grew by about 15.54% year-on-year (Tk1.19 lakh crore collected vs. Tk1.03 lakh crore in FY25), it fell short of the government’s target by a substantial Tk17,219 crore (Target: over Tk1.36 lakh crore).
The key factor dragging down the overall October revenue was the import sector. Import tax collection saw a negative growth of 16% year-on-year. Income tax and VAT collections grew by around 11% and 10%, respectively, but their momentum was insufficient to offset the import slump. Bangladesh Bank sources confirmed that import Letters of Credit (LC) settlement fell by 11.31%, and LC openings dropped by 12% compared to October last year, directly impacting import duty collection.
A former NBR official, Luftor Rahman, commented that a single month's decline in import volume is not a cause for panic, suggesting that growth may normalize in the coming months.
