NBR banks on tobacco, high-value litigations to boost revenue by 47%

The National Board of Revenue has ordered a nationwide drive targeting high-yield revenue sectors, including tobacco, and the speedy disposal of major tax disputes as it seeks to raise revenue collection by nearly 47% in the fiscal 2026-27 despite concerns from field officials over the feasibility of the target.

The directives were issued at a meeting between senior NBR officials and field-level revenue officers at the revenue board's headquarters in Agargaon yesterday (26 July), according to sources familiar with the discussions.

Field officials told the meeting that achieving the ambitious revenue target would be challenging under current economic conditions.

However, the NBR leadership instructed officials to work towards meeting the goal by focusing on sectors with the highest revenue potential.

Keep updated, follow The Business Standard's Google news channel According to officials who attended the meeting, the NBR decided to intensify oversight of the tobacco sector, the country's single largest source of tax revenue, while accelerating the resolution of major revenue-related legal disputes.

The meeting also decided to expedite audits of around 66,000 income tax and VAT files that had been selected through an automated system.

An NBR VAT commissioner, speaking on condition of anonymity, told The Business Standard that discussions included introducing QR codes on cigarette packets to strengthen monitoring and installing AI-powered cameras at tobacco manufacturing facilities to curb tax evasion.

The government collects more than Tk40,000 crore in revenue annually from the tobacco sector.

However, various studies have shown that a huge amount is being evaded in this sector due to counterfeit cigarettes, smuggled tobacco products and other reasons.

The official added that the NBR had identified 23 major tax-related cases involving substantial amounts of disputed revenue and would seek their early disposal.

If necessary, the cases could be resolved through the Alternative Dispute Resolution mechanism following directions from the finance minister, the official said.