The National Board of Revenue (NBR) aims to raise Bangladesh’s revenue-to-GDP ratio to 10.7% by the fiscal year 2028-29. Outlined in the government's Medium-Term Macroeconomic Policy Statement this target is designed to strengthen domestic resource mobilization and sustain national economic growth.
Currently, Bangladesh has one of the lowest revenue-to-GDP ratios among comparable economies. The overall ratio fell from 8.3% in FY24 to 8.0% in FY25. This decline was driven by structural weaknesses in tax administration, lower import revenues and necessary tax exemptions on essential goods to curb inflation.
To reverse this trend, the government projects a steady recovery, targeting an overall ratio of 10.2% in FY27, 10.5% in FY28, and 10.7% by FY29. NBR’s specific tax revenue contribution is expected to rise from 6.7% of GDP in FY25 to 9.3% by FY29.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury highlighted these goals during his FY27 budget speech, noting a long-term objective of reaching a 15% tax-to-GDP ratio by 2035. He emphasized the need for a fair, predictable and technology-driven tax system to stimulate investment and job creation.
To achieve these targets, the NBR will implement wide-ranging reforms. Key initiatives include fully digitizing tax administration, broadening the tax base and promoting transparency to encourage voluntary compliance from citizens and businesses.
Increasing domestic revenue collection will significantly reduce the government’s reliance on bank borrowing and deficit financing. Ultimately will complement ongoing efforts to control inflation and build an economy more resilient to domestic and global shocks.
