Revenue collection grows 13% in Jul-Nov

Revenue collection by the National Board of Revenue (NBR) saw a moderate 13.06 per cent year-on-year growth in the first five months of the current fiscal year despite missing the target for the period.

NBR, the central authority for tax administration, has collected a total of Tk 1,15,620 crore during the July to November period against a target of Tk 1,25,334 crore amid the ongoing economic strain triggered by the Russia-Ukraine war. The administration achieved 92.25 per cent of the actual target for fiscal year 2022-23 (FY23) compared to the 90.21 per cent for the same period in FY22.

Officials credited the growth mostly to ensuring accountability in value added tax (VAT) collection along with policy support. 

However, the government’s decision to up the letter of credit (LC) margins for luxurious products in the wake of dwindling forex reserves have reduced revenue collection from customs.

According to NBR’s provisional data,  the highest portion of the revenue during the period came from VAT collection.

The tax authority collected a whopping Tk 44,183 crore in VAT, a jump of 16.18 per cent compared to the same period last fiscal.

The second biggest portion of the collection came from NBR’s custom wing– Tk 38,060 crore, a 12.54 per cent jump year-on-year. NBR also collected Tk 33,376 crore in income and travel tax revenue collection, a growth of 9.74 per cent compared to the same period last fiscal.

In FY22, NBR saw an overall revenue growth of 16.13 per cent during the period, when customs duty contributed the highest with a 22 per cent growth, followed by a 13.70 per cent increase in local VAT collecting and 13.08 per cent growth in income and travel tax category.

NBR officials said the increased regulatory duty for several products including fruits and luxury goods to discourage imports amid a foreign reserve crunch and lack of import LC-opening have caused lower revenue income from customs duty during
July-November.

They also said that the revenue collection target could not be achieved as the government introduced strict measures in releasing project funds.

The revenue board collected Tk 1,02,264 crore in July-November in FY22 and bagged Tk 3,01,634 crore revenue over the fiscal. For FY23, the government has set a target to collect Tk 3,70,000 crore in revenue.