Bangladesh's National Board of Revenue (NBR) is running nearly Tk 98,000 crore behind its revised collection target for the current fiscal, even as it posted over 11 percent growth in revenue.
The gap came into sharp focus Tuesday as business associations urged the tax authority to slash import duties ahead of the 2026-27 national budget.
Business groups met NBR Chairman Abdur Rahman Khan in the office for pre-budget consultations, presenting a raft of proposals aimed at nurturing domestic industry and reducing reliance on imports.
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Three associations led the charge: 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).
Their central demand is a steep reduction in import duties, supplementary duties and VAT on raw materials and components used in the electrical and electronics manufacturing sectors.
Specifically, they called for duties on inputs for electric fans, LED bulbs, circuit breakers, transformers and batteries to be slashed from the current 10–25 percent range to just 1–5 percent.
The battery industry also pressed for greater investment incentives in lithium-ion and sodium-ion technologies, as well as tax relief on used battery recycling areas the sector sees as critical to long-term industrial competitiveness.
The broader thrust of the proposals is to promote “Made in Bangladesh” manufacturing, shield small and medium enterprises from import competition, and keep consumer prices within reach of ordinary buyers.
NBR Chairman, while acknowledging the submissions, struck a cautionary note. “We need to move away from a culture of tax exemptions,” he said, adding that while duty adjustments for business needs are possible, blanket exemptions create leakage in the tax system.
His remarks came against the backdrop of a yawning revenue shortfall. According to data published by NBR's Research and Statistics Wing, the board collected Tk 2,87,862 crore in the nine months through March 26 against a revised target of Tk 3,85,852 crore — leaving a deficit of nearly Tk 97,990 crore.
Despite the gap, year-on-year collection grew by 11.15 percent compared to the same period in fiscal 2024-25, offering some consolation as the government prepares to frame the next budget.