Dhaka, Feb. 26 -- A surge in election-related spending in recent months appears to have provided a short-term boost to value-added tax (VAT) collection, with January 2026 revenue standing Tk 30 billion above the July-December monthly average.

Provisional data suggest campaign-driven economic activity injected liquidity into the system, temporarily lifting receipts.

Yet despite the monthly uptick, underlying weaknesses in VAT compliance and administration continue to weigh on year-on-year growth, pointing to deeper structural challenges in revenue mobilisation.

According to provisional figures from the National Board of Revenue (NBR), VAT collection in January rose 24 per cent compared with the average monthly intake in the first half (...