Finance Minister AHM Mustafa Kamal placed his maiden budget of Tk 5 lakh 23 thousand 190 crore on June 13 last year for 2019-20 fiscal year with the slogan of “Bangladesh on a Pathway to Prosperity: Time is Ours, Time for Bangladesh” and outlined some of his ambitions ranging from scaling up revenue-GDP ratio to 14% from current 10% and placing 100 percent automation system in revenue management.
On the eve of delivering his second budget, which is expected to be delivered tomorrow, The Business Post tried to look back some of his promises and wanted to learn, how much the Mustafa Kamal as finance minister was able to deliver in his first year as finance minister against the promises he made to the nation.
Promise: Revenue-GDP ratio to be scaled up from 10% to 14%.
Delivery: Achieved 7.78% of Revenue-GDP ratio till July to March racking up Tk 1 lakh 65 thousand 77 crore and 89 lakh as revenue compared with 2019-20 fiscal year. In a recent letter, sent by NBR chairman Abu Hena Md. Rahmatul Mumin to finance ministry said, that analyzing the pace of the revenue collection, I projected that at the end of the current fiscal year revenue collection will be as much as Tk 2 lakh 29 thousand crore which is Tk 15 thousand crore less than the previous fiscal year’s collection.
Which means, finance minister not only failed to achieve the revenue-GDP ratio 10% his predecessor Abul Maal Abdul Muhith left for him but also even keeping pace with him.
An economist commenting on the performance of Mustafa Kamal on this promise ended up saying “He clearly failed to deliver on his promises that he boastfully made to the nation.”
Promise: Overhauling the revenue management by placing 100 percent automation in taxation system.
Delivery: Under the project of Strengthening Governance Management Project (SGMP), filling online income tax return through BITAX software remain operational since 2016-17 tax year.
There is an e-payment portal in NBR website where bank, financial institutions and mobile banking service providers will be able to deposit money using this online platform.
Aiming at cutting down red-tapism in the decision-making process and controlling abuse of bond privileged, a project named 'Bond Management Automation' has been undertaken. There is a hope for ensuring automation by implementing the project by June 2021.
Promise: Posting number of income tax payer by one crore in quick time.
Delivery: ‘Work is on’ as the officials said to increase number of income tax payer but no result insight till now. There is only 23 lakh income tax returnees against the whopping one crore Taxpayer's Identification Number (TIN) certificate holders. His job as finance minister is about to step into second year but income taxpayers yet to cross one-fourth of his target.
Promise: Full automation system in all ports.
Delivery: Prime seaport, Chattogram seaport, had five scanners. This year two scanners were delivered to this port. Tender evaluation to procure 14 scanners are in final stage which will be installed in all the ports to ensure 100 percent scanning facilities. Work order will be awarded soon which means ensuring cent percent automation in all ports will remain elusive this year too.
Promise: Withdrawing tax holiday in different sectors as per as possible.
Delivery: In 2018-19 fiscal year some Tk 3 crore tax holiday was awarded in favour of 34 private organisations. In current fiscal year 2019-20, Tk 1 crore 75 lakh tax holiday were issued to 18 private organisations which is Tk 1 crore 25 lakh less than the previous year. In 2018-19 fiscal year some Tk 45740 crore were waived as custom duty in the current fiscal year was lowered to Tk 27657 crore which is 21.34% less than the previous year.
In 2018-19 fiscal year, some Tk 15192 crore were waived as VAT and in this current fiscal year it trim down to Tk 1180 crore.
Promise: VAT act-2012 implementation.
Delivery: VAT act-2012 remained operational since July 1, 2019.
Promise: Installation of electronic fiscal machine in business to bring transparency in VAT collection.
Delivery: Some 1020 Electronic Fiscal Devices (EFD) were imported. Training of NBR officials were completed to install software and data center as well as importing of server. So far 100 EFD devices are ready for piloting operation.
A finance ministry official said, Electronic Fiscal Device which is also termed as VAT machine was supposed to install from July last year but later this date was deferred to last January and this date also passed by adding anguish an NBR official said, “We imported EFD devices long ago to manage VAT management but yet to be installed.”
Promise: Updating Customs Act-1969.
Delivery: New customs act was tabled at the parliament and after vetting at the parliamentary standing committee but this act is now waiting to be presented at the parliament for approval.
