The International Monetary Fund (IMF) fact-finding mission currently in Dhaka is set to engage with the National Board of Revenue (NBR) regarding Bangladesh’s revenue collection strategy and the financial assessment for the 2023-24 fiscal year.
The four-member delegation, led by Mission Chief Chris Papageorgiou, will meet with NBR officials in a closed-door session to discuss the country’s revenue mobilization challenges. The IMF is expected to focus on several critical areas, including the revenue collection plan, the progress of tax reforms, and the overall performance of the tax system in the first months of the fiscal year.
One of the key issues on the agenda is the country’s current revenue collection performance. Bangladesh has already experienced an 11 percent decline in revenue collection in the first two months of the 2023-24 fiscal year.
The NBR is lagging behind its target by nearly Tk 15,000 crore for the July-August period. The revenue target for the entire fiscal year 2024-25 is set at Tk 480,000 crore.
The IMF delegation is likely to inquire about the government’s plans to address this shortfall, as well as the steps being taken to enhance revenue collection through customs modernization, tax automation, and reforms in tax expenditure. These measures are crucial, as the government has committed to specific tax revenue targets as part of its agreement under the IMF-supported program.
Automation and reform efforts will also be discussed. The NBR has been working on various reform measures, including the introduction of e-tax filing systems and other forms of digitalization aimed at improving tax compliance and reducing administrative inefficiencies. The IMF is likely to seek updates on the progress of these initiatives and assess their potential to increase revenue mobilization.
In addition to reviewing current fiscal performance, the IMF mission will also seek clarity on Bangladesh’s tax revenue plans for the next two fiscal years, FY25 and FY26. The IMF-supported program requires the government to meet specific revenue targets, and the mission will want to ensure that the necessary reforms and strategies are in place to meet these commitments.
