Home ›› 20 Mar 2023 ›› Front
The National Board of Revenue (NBR) collected Tk 1,96,037 crore from income tax, value-added tax, and import duty in the July-February period of the current fiscal year, 8.92 per cent up compared to the corresponding period of the last fiscal year.
Despite the growth in revenue collection, the NBR lagged behind Tk 22,978 crore against its actual target of Tk 2,19,015 crore during the first eight months of the current financial year, according to provisional data of the NBR.
The revenue officials said that the revenue deficit is widening as a result of a decrease in funds released to government projects due to the forex crunch and economic headwinds triggered by the Russia-Ukraine war.
Experts opined that the revenue collection fell short of the target due to the policy reflection of the government against the import of luxury goods and LC opening complexities amidst the micro and macro-economic instabilities in the country, which ultimately resulted in a sharp decline in imports.
The board has to collect Tk 1,73,963 crore in just the last four months of the current financial year; but if the revenue collection continues at the same trend, the country will see around Tk 41,000 crore revenue deficit in this financial year.
However, the NBR officials expect that the board will collect more in the last four months and the shortfall may be around Tk 30,000 crore by the end of the financial year.
Experts opined that the revenue shortfall may be around Tk 35,000 crore in this financial year.
Meanwhile, the revenue board witnessed 16.40 per cent growth during the first eight months in the last financial year when the revenue collection from imports grew by 22.68 per cent. But in the first eight months of the current financial year, the customs revenue growth is 4.36 per cent, followed by 6.29 per cent in income tax, which was 17.50 per cent in last FY.
The revenue collection in VAT at the local stage witnessed a hefty growth of 15% in the July-February period of the current financial year, up from 10.69 per cent growth in the same period of the last financial year.
According to the data, the NBR lagged behind mostly Tk 13,814 crore in import revenue, followed by Tk 5,738 crore in VAT at the local stage and Tk 3,425 crore in income and travel tax in the first eight months of the current financial year. During the period, the revenue board collected Tk 76,401 crore from VAT at the local stage, followed by Tk 60,437 crore from the income and travel tax stage and Tk 59,198 crore from the import stage.
Commenting on the matter, RAPID Executive Director Professor Dr M Abu Eusuf said, “The revenue target for NBR is unattainable and the revenue collection will lag behind by Tk 33,000 crore-Tk 35,000 crore as the companies file returns mostly during the closing time of the fiscal year.”
“The soaring price of petroleum goods decreased the production too, which is also a reason behind the slower growth,” he added.
“So, the NBR has to take initiatives that will increase the tax net directly. For example, the revenue board can send text messages to those two-thirds of TIN holders who are yet to file returns for this financial year, asking them to clarify why they did not submit their tax returns. It will increase return filing, boost the revenue collection and help tackle the ongoing economic headwinds,” Eusuf observed.
