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Improved enforcement, recovery efforts and better assessment practices continue to boost Business Income Tax collections
Business Income Tax (BIT) collections have continued to show strong performance, with the Department of Revenue and Customs (DRC) reporting that a total of Nu 1.734 billion (bn) had been collected from 43,501 businesses as of 30th June 2026.
The latest figures reflect the government’s continued efforts to strengthen tax administration through improved compliance and enforcement measures. The collection comes after a significant increase recorded during the previous financial year, when BIT revenue reached one of its highest levels in recent years.
According to the DRC, BIT collections in FY 2024–25 amounted to Nu 1.991 bn, representing a 24.32 percent increase compared to Nu 1.601 bn collected in the previous year. The department said the strong growth in collections reflected improved tax compliance and more effective revenue administration. Business Income Tax contributed 3.20 percent of the country’s total domestic revenue during FY 2024–25, indicating an improvement in overall tax performance.
Officials attributed the increase largely to stronger enforcement and compliance measures introduced throughout the year. These initiatives focused on ensuring that businesses met their tax obligations while improving the efficiency and accuracy of tax assessments. One of the key measures was the intensification of recovery efforts aimed at collecting outstanding tax payments. Revenue officials also carried out regular follow-ups with businesses that had failed to file their tax returns, helping improve compliance among taxpayers.
In addition, the DRC strengthened its assessment practices to ensure that taxable income was determined more accurately. Improved assessment methods enabled tax officials to identify discrepancies more effectively and enhance revenue collection. Another important factor behind the increase in BIT collections was the use of estimated assessments based on Customs Declaration data. By cross-checking information available through customs records, tax officials were able to improve the accuracy of business income assessments and identify cases where taxable income may have been underreported.
Verification of Current Deposit (CD) accounts also played a significant role in strengthening tax administration. The verification process helped revenue officials confirm financial information submitted by businesses, allowing for more accurate tax assessments and improving overall revenue collection.
The DRC stated that these combined measures enhanced the integrity of the tax system while increasing BIT revenue during the financial year. Stronger compliance monitoring and improved verification processes also contributed to greater accountability among taxpayers.
The latest collection of Nu 1.734 bn from 43,501 businesses as of 30th June 2026 demonstrates the continued importance of BIT as a source of domestic revenue. The figures indicate that efforts to strengthen compliance and improve tax administration remain a key part of the government’s revenue strategy.
Regular monitoring, improved assessment practices and continued enforcement measures will remain essential to sustaining revenue growth. Recovery efforts to collect outstanding tax liabilities, regular follow-up with non-filers and the use of financial and customs data are expected to further strengthen tax compliance.
The DRC maintains that improving the accuracy of assessments and ensuring businesses fulfil their tax obligations are critical to strengthening domestic revenue mobilization. As compliance systems continue to improve, BIT is expected to remain an important contributor to government revenue while supporting broader efforts to enhance the country’s tax administration.
