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🇧🇩 Bangladesh /Economy & Trade

Bangladesh misses revenue target by 18.4%, plans tax net expansion

From Daily Star · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Bangladesh's government collected Tk 4,10,390 crore in revenue in the 2025-26 fiscal year, achieving 81.6% of its Tk 5,03,000 crore target.
  • Shortfalls were recorded across income tax, VAT, and customs, with achievement rates of 76.7%, 83.7%, and 85.3% respectively.
  • The government plans to expand the tax net by identifying companies' market shares and introducing an area-based flat-rate tax system for new taxpayers.

Bangladesh's government fell short of its revenue collection target for the 2025-26 fiscal year, gathering Tk 4,10,390 crore against a goal of Tk 5,03,000 crore. This represents an 81.6% achievement rate, with shortfalls noted across major revenue streams including income tax, VAT, and customs.

Finance Minister Amir Khosru Mahmud Chowdhury informed parliament that income tax collection reached Tk 1,42,827 crore (76.7% of target), VAT collection stood at Tk 1,55,940 crore (83.7%), and customs realized Tk 1,11,623 crore (85.3%).

We are determining the market share of every company in each sector. Tax liability will have a relationship with market share because those with larger market shares should bear a proportionate tax burden.

— Amir Khosru ChowdhuryThe Finance Minister explained the government's strategy to ensure a fairer taxation system by linking tax liability to a company's market share.

In response to a question about increasing revenue without raising tax rates, Chowdhury outlined initiatives to broaden the tax base. The government is systematically assessing the market share of companies to ensure a fairer distribution of tax burdens, a method not previously employed. "We are determining the market share of every company in each sector. Tax liability will have a relationship with market share because those with larger market shares should bear a proportionate tax burden," he stated.

Furthermore, the minister announced a new area-based flat-rate tax system for individuals and businesses currently outside the tax net. This system will allow new taxpayers to pay a fixed amount based on their financial capacity, bypassing the need for tax returns. "Our objective is to create a large tax network through this flat-rate system. Once people are brought into the tax net, the regular taxation policy will be implemented gradually," Chowdhury explained. The aim is to minimize harassment and gradually integrate these new taxpayers into the standard system.

Our objective is to create a large tax network through this flat-rate system. Once people are brought into the tax net, the regular taxation policy will be implemented gradually.

— Amir Khosru ChowdhuryThe Finance Minister described the goal of the new area-based flat-rate tax system for new taxpayers.
DistantNews Editorial

Originally published by Daily Star in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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