Dhaka: Bangladesh’s National Board of Revenue (NBR) is facing a significant shortfall of nearly Tk 98,000 crore against its revised revenue collection target for the current fiscal year, even though it has achieved an over 11 percent growth in revenue. The shortfall has become increasingly apparent as business associations have renewed their calls for reduced import duties ahead of the 2026-27 national budget.
According to United News of Bangladesh, business groups convened with NBR Chairman Abdur Rahman Khan for pre-budget consultations, putting forth a set of proposals aimed at bolstering domestic industry and minimizing reliance on imports. The proposals were primarily led by three associations: 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).
These groups are advocating for a substantial reduction in import duties, supplementary duties, and VAT on raw materials and components essential to the electrical and electronics manufacturing sectors. They specifically requested that duties on inputs for electric fans, LED bulbs, circuit breakers, transformers, and batteries be decreased from the current 10-25 percent range to a much lower 1-5 percent.
The battery industry also emphasized the need for increased investment incentives in lithium-ion and sodium-ion technologies, along with tax relief for used battery recycling. These measures are viewed as critical for sustaining long-term industrial competitiveness.
The overarching goal of these proposals is to encourage ‘Made in Bangladesh’ manufacturing, protect small and medium enterprises from import competition, and maintain affordable consumer prices.
NBR Chairman Abdur Rahman Khan acknowledged the proposals but cautioned against a broad culture of tax exemptions. He noted that while duty adjustments to meet business needs are feasible, widespread exemptions could lead to revenue leakage within the tax system.
This conversation takes place amid a notable revenue shortfall. Data published by NBR’s Research and Statistics Wing indicates that the board collected Tk 2,87,862 crore in the nine months leading up to March 26, falling short of the revised target of Tk 3,85,852 crore by nearly Tk 97,990 crore. Despite the deficit, the year-on-year collection has grown by 11.15 percent compared to the same period in fiscal 2024-25, providing some reassurance as preparations for the next budget continue.