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In a bold move to bolster the country's financial prospects, the National Board of Revenue (NBR) has unveiled an ambitious target of Tk 1,16,200 crore for the 2023-24 financial year from export-import revenue.
NBR generates a significant portion of its revenue through import and export duties, which are collected by 17 customs stations across the country.
In the previous FY2022-23, NBR collected Tk 89,423 crore from these stations, falling short of the Tk 1 lakh 11 thousand crore target.
However, for the current FY, the NBR has set a revenue target of Tk 1 lakh 16 thousand 100 crore, representing a 23 per cent increase from the previous year's realisation.
According to the Research and Statistics Division of NBR, the board has set a revenue target of Tk 4,30,000 crore for the FY2023-24. This money will be collected from three sectors. Among the three sectors, the revenue will be Tk 1 lakh 16 thousand 100 from import and export, Tk 1 lakh 59 thousand 100 crore from Value Added Tax (VAT) at the local level and Tk 1 lakh 54 thousand 800 crore from income tax and travel tax.
In the outgoing financial year, NBR's revenue collection target from these three sectors was Tk370 thousand crore. Among them, at the end of the financial year, NBR has managed to earn Tk3 lakh 25 thousand 272 crores.
In the domain of duty collection at the import and export level, the institutions responsible encompass various entities such as custom houses, custom bond commissionerates, customs excise and VAT commissionerates. These institutions, totaling 17 in number across the country play a crucial role in revenue generation. Among these commissionarates, custom houses stand out as the primary contributors to revenue collection.
Chittagong Custom House, being the largest customs station in the country, holds the distinction of generating the highest revenue. As a result, the state has bestowed upon this institution a more substantial revenue target compared to others.
Specifically, Chittagong Custom House has been assigned the task of earning Tk 77,616 crore out of the overall target of Tk 1,16,100 crore, which accounts for 67 per cent of the total revenue goal.
During the last fiscal year, Chittagong Custom House witnessed a revenue collection of Tk61 thousand 464 core 72 lakh falling short of the set target of Tk 74 thousand 206 crore.
Senior officials of Chittagong Custom House said that the revenue could have been significantly higher if the challenges posed by the dollar crisis and the prevailing economic recession were not in place. Additionally, there were outstanding arrears amounting to Tk 10,700 crore related to LNG imports that remained unpaid.
Speaking to The Business Post, Faizur Rahman, commissioner of Chittagong Custom House said, “Several factors have led to a significant decline in imports during the FY2022-23. The Ukraine-Russia war, coupled with economic recession and dollar crisis, has resulted in a substantial reduction in import volumes. Mentionable, there were 2,68,736 fewer bills of entry processed at Chittagong Custom House during this period.”
The commissioner added, “The impact of the dollar crisis has been profound, causing importers to face difficulties in securing large LCs (Letter of Credit) as they did in the past. Consequently, importers have resorted to dividing their shipments into multiple smaller consignments to compensate for the limitations imposed by the crisis.
Despite this, the total number of bills of entry reached 23,28,012. However, when compared to previous years' LCs, the overall value of these bills of entry remains considerably lower.”
It's noteworthy that Chittagong Custom House achieved a remarkable feat by generating record revenue during this challenging period. The fiscal year 2022-23 witnessed an unprecedented level of revenue collection, surpassing any other financial year in the institution's history, he said.
Upon analysing the revenue collection targets set by the NBR for the 17 customs stations operating at the import and export level, it becomes evident that the total customs collection goal stands at Tk 1,16, 100 crores.
Specifically, these targets can be further broken down as follows: Import duty collection target is Tk 46,016 crore, export duty collection target is Tk 66 crore, import duty collection target (Additional) is Tk 54,943 crore and supplementary duty collection target is Tk 15,076 crore.
Besides, after separating the target of revenue collection for each customs, NBR has given a target of Tk 77,616 crore to Chittagong Custom House, Tk 6,238 crore to Benapole Customs, Tk 7,282 crore to Dhaka Kurmitola Customs, Tk 5,355 crore to Dhaka Kamlapur ICD, Tk 5,355 crore to Mongla Custom House. Tk 5,962 crores to Pangaon Custom House, Tk1,387 crores to Dhaka Customs Bond Commissionerate, Tk 6,894 crores to Dhaka Customs Bond Commissionerate, Tk1,206 crores to Chittagong Bond Commissionerate, Tk16 crores to Dhaka North, Tk100 crores to Dhaka South, Tk129 crores to Chittagong, Tk8 crores to Comilla, Tk1,129 crores to Rajshahi, Tk1027 crores to Rangpur, Tk179 crores to Jashore, Tk1,352 crores to Khulna and Tk311 crores to Sylhet Custom Excise and VAT Commissionerate.
