Bangladesh’s revenue mobilisation slipped to a fresh low in the last financial year, raising concerns ahead of an International Monetary Fund (IMF) review mission due in October.

Finance Ministry data show the revenue-to-GDP ratio fell to 7.69% in FY2024-25, down from above 8% maintained over the past five years. The tax-GDP ratio also declined to 6.7% from 7.39%, despite IMF conditions requiring steady increases.

Overall revenue collection grew by just 6% to Tk 4.34 trillion, sharply lower than the 11% growth in the previous year.

Tax receipts from the National Board of Revenue (NBR) and non-NBR sources rose by only 2%, while non-tax revenue jumped 35% after adjustments to government fees and charges.

The IMF programme requires Bangladesh to raise the tax-GDP ratio by 0.5 percentage points in both FY24 and FY25, and by 0.7 points in FY26. Instead, it fell by 0.69 points last year. The lender has asked the NBR to mobilise an additional Tk 400 billion in FY2025-26 through policy and administrative measures.

Economists warn the shortfall could strain fiscal stability. “If such plummeting revenue-mobilisation continues, Bangladesh would fall into a dangerous debt trap,” said Professor Mustafizur Rahman of the Centre for Policy Dialogue.

He noted that the Annual Development Programme is now heavily debt-dependent, with non-concessional loans rising and grace periods shrinking.

Revenue officials admit that reforms have faltered, with political unrest and resistance within tax agencies slowing progress.