Bangladesh’s National Board of Revenue (NBR) officials met a visiting IMF delegation in Dhaka and sought a reduction in the tax target, requesting a 0.4-per cent increase instead of the initially set figure.
The IMF agreed to the proposal, but added an additional 0.2 per-cent as NBR failed to meet the targets for the last fiscal, according to domestic media reports.
According to the agreement between the two sides, Bangladesh was expected to raise tax collection by 0.5 per cent of GDP in fiscal 2023-24, another 0.5 per cent in fiscal 2024-25, and 0.7 per cent in fiscal 2025-26.
The political unrest during July and the subsequent political transition in August led to a deterioration in law and order and caused instability in business activities. The impact of that disruption is still being felt in revenue collection.
The negative growth in tax receipts has continued in the first four months of this fiscal.
ALCHEMPro News Desk (DS)
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