The government has set the National Board of Revenue (NBR) an unprecedented target of Tk.6.04 trillion for FY2026-27 about 46 per cent higher than last year's collection as it looks to fund a newly announced pay rise for public employees.
Prime Minister's Economic and Planning Adviser Professor Rashed Al Mahmud Titumir met NBR officials on Tuesday and instructed them to meet the target "at any cost" officials present said.
The goal has alarmed many at NBR since Bangladesh has never achieved revenue growth above 27 per cent since independence. Collection rose only about 12 per cent in FY26. Currently, roughly 45 per cent of domestic revenue already goes toward salaries, pensions and allowances according to the Policy Research Institute.
Dr Titumir said revenue mobilisation must rise to match both the new pay scale and the size of the economy also adding that Bangladesh still lags in tapping its revenue potential. Reform of tax administration remains a top government priority, he said.
The new pay scale, announced Monday, benefits 2.4 million employees and 900,000 pensioners and will raise annual government spending by Tk.1.05 trillion once fully implemented.
Economist Dr MA Razzaque warned that the government is already under fiscal strain from subsidies and social protection costs. He said a 46 per cent revenue jump looks "quite impossible" under current conditions and warned of heavier reliance on bank borrowing or even money printing if targets are missed, risking macroeconomic instability.
NBR data already show early strain: VAT collection fell to Tk.9.301 billion in July and Tk.8.362 billion in August, both down sharply from last year. Import tax collection has also declined, officials said, citing continued gas and power shortages weighing on industrial output.
