NBR revenue collection 23pc short of target

National Board of Revenue (NBR) managed to collect slightly over 87 thousand crore taka as revenue in the first five months of the current 2020-21 fiscal year. Although a 3.19 percent increase than the same period the last year, the amount was still 23 percent short of the target income.

According to NBR revenue collection data, it had set a target of earning 3.30 lakh thousand crore taka this fiscal, which many policy strategists labelled as ambitious. With this 23 percent shortfall, the deficit now stands at over 25 thousand crore taka.

NBR aimed at earning over 1.12 lakh thousand crore by the end of November but it was at 87.092 thousand crore taka which was 77 percent off the target.

Of the earned revenue, 27.713 thousand crore taka came from export and import duty, 33.446 thousand crore taka from Value Added Tax (VAT) and 25.933 thousand crore taka from income tax and travel tax.

In comparison to last year, this year’s revenue saw an uptick in growth: about 6.24 percent in export-import duty, 4.22 percent in income tax and travel tax and 0.3 percent in VAT.

In 2020-21 fiscal year, NBR pitched for earning 3.30 lakh thousand crore taka as revenue. VAT collection was projected at over 1.28 lakh thousand crore taka followed by 1.5 lakh thousand crore taka as income and travel tax and 95.652 thousand crore taka as import-export duty.

Finance minister AHM Mustafa Kamal, however, seems pleased with the pace of revenue collection when he was asked about the revenue collection this year.

He said, “We gave a well-thought budget this year. We are constantly reviewing the revenue collection and as of today revenue collection seems satisfactory.”

“We are in very good shape in collecting revenue during this pandemic period. We believe this positive trend will continue and improve significantly in the future and will be able to achieve the target”, he added.

People with the knowledge of revenue management said NBR is working with commerce, ICT and other public departments to prevent transaction through unauthorized channels which deprives the government of revenue.

Moreover, NBR is charging Facebook, YouTube and other social media platforms with Tax, but some are evading tax which is a worry for policymakers.

NBR believes there are scopes of increasing revenue collection from online platforms by establishing mutual understanding and cooperation.

Steps have been taken to introduce automation in revenue collection, although NBR currently lacks skilled manpower for this move.

In the first quarter from July to September of the current fiscal year, NBR collected 63.713 thousand crore taka which was 78.46 percent of the targeted income despite a 4.11 percent growth.

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