NBR Revenue Collection Soars by Tk23,000cr in 6 Months Due to Reforms

The National Board of Revenue (NBR) has reported a significant increase in revenue collection, with an additional Tk23,020 crore generated in the first six months of the current fiscal year compared to the same period last year. Total revenue for the period, from July to December 2025, reached Tk1,85,229 crore.

The NBR attributes this growth to various structural reforms, including improvements in revenue management, digitalisation, efforts to curb tax evasion, and taxpayer-friendly initiatives. These changes have been instrumental in streamlining the revenue collection process.

Key reforms include the separation of revenue policy from revenue administration, a move formalized through the Revenue Policy and Revenue Management (Amendment) Ordinance, 2025. Additionally, the NBR has heavily invested in modernizing its digital systems through the Strengthening Domestic Revenue Mobilisation Project (SDRMP), funded by the World Bank. This initiative aims to improve income tax, VAT, and customs operations, making it easier for taxpayers to submit e-returns, make online payments, and utilize e-refunds.

One of the most notable policy changes is the introduction of the Tax Expenditure Policy, which requires parliamentary approval for any tax exemptions. This move is part of the government's broader effort to enhance transparency and reduce unnecessary tax exemptions.

In the VAT sector, a special registration campaign led to the issuance of 1,31,000 new VAT registrations in December 2025 alone, bringing the total number of VAT-registered entities to 775,000. Additionally, more than 34 lakh e-returns have been filed as part of the mandatory online income tax submission.

The NBR also introduced a risk-based audit system, making the audit process more transparent and efficient. Furthermore, a series of excise duty exemptions and tax relief measures, such as reduced customs duties on mobile phone imports, have benefited businesses and the public.

These reforms have already led to higher revenue collection, increased taxpayer confidence, and a more business-friendly environment. In the long term, they are expected to significantly contribute to raising the revenue-to-GDP ratio, improving Bangladesh's fiscal health.