The National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan has expressed concern over the slow growth in revenue collection on Sunday. He urged NBR officials to explore ways to boost tax earnings and reduce the country’s reliance on foreign loans.
At a meeting with officials from the Customs and Value-Added Tax (VAT) wings at the NBR office, He emphasised that businesses, already struggling amid slowed economic activity, should not be harassed.
The tax administration has been facing a significant shortfall in revenue collection since the interim government took charge in August. During the first two months (July- August) of the current fiscal year (2024-225), tax collection saw 11 per cent negative growth.
The revenue board managed to collect Tk 42,106 crore, registering a shortfall of Tk 15,069 crore, in the two-month period amid the slowed economic activities triggered by the recent political turmoil.
He said that there are no immediate signs of improvement, as the corporate taxpayers are fighting to survive at the moment and the frequent shutdowns and blockades enforced by the labourers have been adversely affecting the country’s business sector, particularly import and export businesses.
As a result, businesses are facing difficulties in paying taxes, which would largely hamper revenue earnings, the NBR chairman said in the meeting.
In response to the ongoing difficulties, he requested the officials to identify ways of increasing tax collection without harassing the businesses.
Amid this slow pace in tax collection, the NBR is considering a request to the finance ministry to lower the current revenue target in the revised budget for this fiscal year, according to the NBR officials.
However, Finance and Commerce Adviser Salehuddin Ahmed recently said that the interim government has no plans to reduce the revenue target, citing the need to minimise the country’s dependency on foreign loans to cover budget deficits.
“So, as much as possible, we have to rely on domestic sources,” Salehuddin said while explaining the decision not to cut the revenue collection goal.
