Bangladesh's non-tax revenue surged nearly threefold in the final quarter of last fiscal year (FY2025-26), driven largely by dividend payouts from state enterprises, interest earnings and administrative fees.
The collection provided a temporary boost to the government's fiscal performance despite persistent weaknesses in regular revenue mobilisation.
Meanwhile, revenue collected outside the National Board of Revenue registered modest growth over the same period, driven overwhelmingly by stamp duties and taxes on the use of goods.
Non-tax revenue (NTR) in Bangladesh refers to government earnings from sources other than taxes, such as administrative fees, dividends, profits, interest and tolls.
The revised target for total revenue collection for FY26 was set at over Tk 5.88 trillion, 13.51 per cent higher than the revised revenue target of Tk 5.18 trillion for FY25.
In FY26, total revenue receipts stood at over Tk 4.76 trillion, equivalent to 81.0 per cent of the revised target for the year and 12.7 per cent higher than the actual revenue collection of Tk 4.23 trillion in FY25.
Despite this rapid expansion in state receipts, policy experts emphasised that these non-tax windfalls do not signal a permanent improvement in the country's fiscal health.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said the sharp rise in non-tax revenue was encouraging but did not necessarily indicate a sustainable improvement in the government's revenue mobilisation capacity.
He said the government needed to strengthen regular tax collection and broaden the revenue base instead of relying heavily on dividends and other less predictable sources.
Non-tax revenue collection surged during April-June of FY26, mainly supported by dividend receipts, interest earnings and administrative fees, according to the Bangladesh Bank's latest data.
The government had set an annual target of Tk 650 billion for non-tax revenue collection in FY26, equivalent to 11.1 per cent of the total revenue collection target.
Non-tax revenue collection stood at Tk 187.74 billion during April-June of FY26, registering a massive 195.3 per cent increase from Tk 63.58 billion collected in the previous quarter.
The collection was also 194.2 per cent higher than that in the corresponding quarter of the previous fiscal year.
Non-tax revenue collection stood at Tk 63.82 billion in April-June FY25.
Of the different components of non-tax revenue during April-June FY26, dividends generated the highest amount, contributing Tk 103.61 billion, or 55.2 per cent, of the quarterly collection.
Interest receipts contributed Tk 20.67 billion, or 11.0 per cent, followed by administrative fees at Tk 19.86 billion, or 10.6 per cent.
The sale of non-financial assets generated Tk 10.53 billion, or 5.6 per cent, while rent and sharing receipts contributed Tk 3.91 billion, or 2.1 per cent.
Another Tk 29.17 billion, or 15.5 per cent, came from other non-tax revenue sources.
People familiar with the development said the strong quarterly growth in non-tax revenue should be assessed carefully, particularly because dividends accounted for more than half of the collection.
They said such receipts could fluctuate significantly from year to year and therefore could not alone provide a sustainable foundation for fiscal management.
Meanwhile, non-NBR tax revenue remained one of the smallest sources of government revenue, although collection increased during the final quarter of FY26.
The revised annual target for non-NBR tax revenue collection was Tk 200 billion in FY26, accounting for only around 3.4 per cent of the total revenue collection target.
Non-NBR tax revenue collection stood at over Tk 20 billion during April-June FY26, up 39.9 per cent from Tk 14.30 billion in January-March FY26.
The collection was Tk 14.30 billion in January-March FY26.
The collection was also 36.5 per cent higher than the Tk 14.65 billion collected during the same quarter of FY25.
Stamp duty remained the dominant component of non-NBR tax revenue, generating Tk 14.57 billion, or 72.8 per cent, of the quarterly collection.
Taxes on the use of goods contributed Tk 5.02 billion, or 25.1 per cent, while narcotics and liquor duty generated Tk 413 million, accounting for 2.1 per cent.
Dr Reaz said the relatively low contribution of non-NBR taxes showed significant scope to improve revenue mobilisation outside the National Board of Revenue.
He said better compliance, digitalisation of collection systems and stronger coordination among government agencies could help increase receipts from these sources and diversify the government's revenue base.
People familiar with the development also said the low share of non-NBR taxes suggested that several potential revenue streams remained underutilised.
They stressed the need for better collection mechanisms and stronger institutional capacity to raise revenue from these sources.
