[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

NBR will meet revenue target this fiscal year: Finance Minister

Finance Minister Amir Khosru Mahmud Chowdhury today (Tuesday) expressed his confidence that the National Board of Revenue (NBR) would be able to meet its revenue collection target for the current fiscal year. "We hope we will be able to meet the target that has been set, Insha Allah. The NBR offic

thefinancialexpress.com.bd

NBR will meet revenue target this fiscal year: Finance Minister

Finance Minister Amir Khosru Mahmud Chowdhury today (Tuesday) expressed his confidence that the National Board of Revenue (NBR) would be able to meet its revenue collection target for the current fiscal year.

"We hope we will be able to meet the target that has been set, Insha Allah. The NBR officials are geared up, energized and working hard," he said, BSS reports.

The Finance Minister was responding to the questions of journalists after holding a meeting with National Board of Revenue officials at the NBR's Agargaon headquarters today.

Asked about the decline in VAT collection during the first one and a half months of the current fiscal year compared with the same period last year, Khosru said it was too early to draw conclusions as taxation is a gradual growth.

"Judgment cannot be made within one and a half months. There can be some problems at the beginning. Growth comes later, gradually," he said.

The finance minister also said the problems affecting revenue collection have existed for a long time and cannot be resolved overnight.

"Tax collection is slowly picking up. We have to encourage people to pay taxes. There have been problems on both sides for a long time. We are trying to ensure that people can pay taxes without being harassed," he said.

"It's working reasonably well and improving, although there is still room for further improvement," he added.

About the latest growth projections by the World Bank, Amir Khosru Mahmud Chowdhury has responded with a "wait and see" approach to the World Bank's forecast that Bangladesh's GDP growth will slow to 3.4% in FY27.

"Wait and see," Khosru replied.

In its latest South Asia Economic Update, released today, the World Bank revised down Bangladesh's GDP growth forecast for FY27 by 1.2 percentage points to 3.4%. Its forecast for FY26 was also revised down by 0.5 percentage points to 3.4%.

The World Bank projects South Asia's growth to rise to 6.9% in 2026 before moderating to 6.7% in 2027.​

 

[Saif]

Bangladesh to shift from IMF loans to market-based financing, says finance minister

Instead of relying only on foreign loans from the International Monetary Fund (IMF), Finance Minister Amir Khosru Mahmud Chowdhury has stressed a strategy to shift toward raising capital directly through global and domestic markets with bonds, equities, and market-driven financial architectur

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Bangladesh to shift from IMF loans to market-based financing, says finance minister

Finance and Planning Minister Amir Khosru Mahmud Chowdhury speaks at the inaugural ceremony of World Investor Week 2026 at the Krishibid Institution in Dhaka on Sunday. — FE photo

Instead of relying only on foreign loans from the International Monetary Fund (IMF), Finance Minister Amir Khosru Mahmud Chowdhury has stressed a strategy to shift toward raising capital directly through global and domestic markets with bonds, equities, and market-driven financial architecture.

He said this on Sunday at the inaugural ceremony of the World Investor Week 2026 arranged by the Bangladesh Securities and Exchange Commission (BSEC) at Krishibid Institution in the capital.

"We cannot depend on the IMF. Relying on the IMF... relying on the IMF, forget it!" the minister said as the chief guest of the programme.

He said the country's financial architecture was changing and urged the stakeholders to go for a trillion dollar economy by 2034.

Khosru spoke about his cancellation of the IMF programme, saying, "You surely saw it, right? Earlier, I cancelled the IMF programme. Your (IMF) condition is not acceptable to us."

He said the money that the IMF would give was not enough to reach a trillion dollars.

"I need 50 billion dollars every year. All of you together will give 10 billion dollars - I do not have time for that anymore," he said.

In June 2026, the government suspended the previous IMF programme as some of the conditions of the lender were no longer considered suitable for Bangladesh's current circumstances.

In his speech, the minister said they were getting a good response to the call to raise money from the local and foreign markets through bonds and equities.

He also expressed optimism that within a year, the face of the Bangladesh capital market would change.

Khosru said confidence in Bangladesh's capital market had started to improve among international investors, particularly following the government's recent engagement with Wall Street institutions during the prime minister's visit to the US.

Representatives of major global financial institutions had demonstrated a strong understanding of Bangladesh's capital market and were closely following recent developments, he said.

"They have confidence in the leadership, they have confidence in the deregulation that this government has announced, they have confidence in the clarity that is coming to this market, and they have confidence in the professionalism this market is showing right now," he said.

Many of the global institutions could become partners in Bangladesh's capital market, while a number of them were expected to visit Dhaka, he stated.

Bangladesh was also preparing to tap international capital markets, including through a proposed dollar bond issue in New York, he said.

"We have to take the plunge. We have to send the message to Wall Street," he said.

The recent engagement with global investors demonstrated that Bangladesh could no longer afford to remain isolated from international capital markets, Khosru said.

The ultimate goal was to build a credible, transparent, and professionally managed capital market capable of mobilising long-term domestic and foreign investment, while reducing the country's excessive dependence on bank financing, the minister added.

He stressed the need to reduce the cost of funds through a stronger capital market.

The minister stated the government wanted businesses to raise funds through the market rather than relying heavily on banks at high interest rates.

He further said the government could not continue financing commercial activities with taxpayers' money.

"Find your money in the market, and make money to repay the government. The government cannot run enterprises and behave like a cheque writer," the minister added.​

 

[Saif]

Corporates see Tk 150b VAT refunds stuck, fresh claims blocked

Corporate kingpins see Tk 150 billion in VAT refunds long stuck and fresh demands barred as the government revenue authority's digital platform stays dysfunctional. National Board of Revenue (NBR) high-ups, however, harbour doubts about accuracy of such huge claim buildups and say scrutiny is

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REFUND DILEMMA WITH DIGITAL PLATFORM DISABILITY
Corporates see Tk 150b VAT refunds stuck, fresh claims blocked

NBR high-ups harbour doubts over huge claim stockpiles, say scrutiny needed

Corporate kingpins see Tk 150 billion in VAT refunds long stuck and fresh demands barred as the government revenue authority's digital platform stays dysfunctional.

National Board of Revenue (NBR) high-ups, however, harbour doubts about accuracy of such huge claim buildups and say scrutiny is needed before claim settlement.

Exporters and manufacturers deplore that they cannot also submit new applications for VAT refunds as the VAT-refund module remains disabled.

Refund of VAT, literally, remains stalled due to the disabled online module that is mandatory for submitting refund applications.

Businesses without bonded-warehouse facilities are the worst sufferers.

Since November last year, filing refund applications through the online system has been mandatory. No manual application is allowed for VAT refunds. However, no digital module is currently active for submitting refund applications.

Businesses view this dilemma as a sign of the revenue authority's unwillingness to allow VAT provided for by the law.

However, a National Board of Revenue (NBR) high-up found the existing Tk 150 billion refund claims suspicious and would need scrutiny.

A senior VAT official has said the refund claim is huge and abnormal, raising doubts that some businesses may be showing lower selling prices or lower value addition.

"Currently, we are allowing refund of Advance Tax (AT) to be claimed through applications," he said.

Naimul Huda, Executive Director of Incepta Pharmaceuticals, has said the company has a pending VAT-refund claim of Tk 120 million dating back to 2019.

"We neither give entry in the system nor claim the AT manually," he told The Financial Express.

VAT consultant Md Daud Faraizy, however, has said the VAT authority is not even allowing businesses to submit application.

"The NBR has no timeline to approve refund applications, but businesses must submit refund applications within six months, in general, of the creation of the refund," he said.

A VAT-registered manufacturer or importer can usually adjust AT in its VAT return. If an eligible surplus remains, it may apply for a cash refund under the refund rules.

Also, an unregistered importer may apply for an AT refund if the goods are for its own final use and will not be transferred to anyone else.

VAT and SD refunds claimed by exporters, deemed exporters, back-to-back LC exporters, and organisations having closed their operations in Bangladesh, on the import of raw materials remained blocked due to dysfunctional modules in the VAT online system.

Businesses find the inactive refund module a violation of existing VAT law provisions on refunds, as even the submission of refund applications remains blocked.

A number of businesses having supplied raw materials for megaprojects are not receiving their refunds despite having applied to the NBR years ago.

A senior official of the NBR says the AT-refund process has been made smoother, but VAT-refund claims by exporters and local manufacturers remain stalled as the NBR decided to investigate the claims.

VAT expert Daud Faraizy, however, has said the refund claims have accumulated over the last six years because businesses were not allowed to avail themselves of the facility.

"Now the amount has turned into a large sum, which the revenue authority finds difficult to pay," he said, explaining that if the amount were divided, the refund demand in each year would have been negligible.

In the VAT online system, it has been mentioned that businesses cannot claim refunds for VAT, except AT.

On November 11, 2025, the NBR introduced online VAT refund by establishing interconnectivity with the Integrated VAT Administration System and Bangladesh Electronic Fund Transfer Network. It scrapped the provision for manual refund application, asking all taxpayers to apply for refunds using the new module.

In the module, the NBR inserted a 27-point checklist for refund processing, including a ceiling for claiming refunds, updated return submission and other compliances.

Mr Faraizy says the law and rules allow online refund application but the provision has not been followed due to the absence of a functioning online system.

Businesses with stuck-up refund claims include Apex Yarn Dyeing Limited, Ispahani Tea, DBL Ceramics, CEAT AK Khan ltd, KSRM, Confidence group, SAMUDA, Primitak, Hawlader Yunus & Co, Ranks Telecom, Walton Hi-Tech Industries, Incepta Pharmaceuticals, Abul Khair Consumer Products, BSRM Wires, Kabir Steel Ltd, Madina Garments, SR Shipping Ltd, Kiswan Snacks, Confidence Infrastructure, Global Steel and Engineering, Protik Ceramics, Karnaphuli Shoes Industries, Fulkoli Bread and Biscuits Ltd, Banoful and Company, Universal Sweater, and Pacific Workwears.​