The revenue collecting authorities managed to collect Tk60,119 crore in July-March, with a shortfall of Tk18,580core
The National Board of Revenue has prioritized five sectors, including source tax, to meet its target of value added tax collection, with just two months left of the ongoing fiscal year.
The other areas of priority are the taxes from floor space, brick kiln, bidi and local trade.
The NBR decided this in a recent closed-door meeting chaired by its Chairman Md Mosharraf Hossain Bhuiyan, while members, commissioners and director generals of the Customs and VAT section were present.
The revenue collecting authorities managed to collect Tk60,119 crore in July-March, with a shortfall of Tk18,580core.
It has to collect Tk47,082crore more in next three months (April-June) to meet Tk107,201 crore revised target set for the whole fiscal.
With April already passed and well into May, Mosharraf Hossain, while addressing the meeting, urged the commissioners to be more active in their jobs, especially in collecting revenue from the five sectors.
“NBR has found that prioritizing the five sources can boost revenue collection to a great extent and help meet the VAT target within the two months,” he said.
The meeting directed that deputy commissioner and joint commissioner from every VAT Commissionarate would monitor the progress in revenue collection from this five sectors and keep the NBR updated every week trough mobile SMS.
Besides, the NBR chairman asked officials concerned to collect the outstanding revenue from different government agencies and resolve the ongoing disputes with taxpayers.
The NBR believes that revenue collection from these sectors has not been satisfactory but there are huge scope to boost it.
To this end, the revenue board has targeted local trade for collecting more VAT, and planed to verify the traders’ sales in large markets, especially in the period of Eid shopping.
As regards the floor space, the NBR has asked all commissioners concerned to ensure taxes from house owners, who rent their spaces for apartments, offices or markets.
Besides, NBR has instructed all its official to collect more VAT from brick kiln and bidi industry through strengthening monitoring.
How the shortfall came to be
NBR member (VAT implementation and IT) Shahnaj Parveen at the meeting explained how the shortfall accrued.
She said that the government lost Tk2,870crore by exempting supplementary duty (SD) on LNG.
Besides, Tk1,795crore of outstanding revenue could not be recovered, she mentioned, adding that the VAT reduction to 5% from 15% on mobile internet caused Tk520crore shortfall.
She said lower cigarette supply compared to the previous year dragged down the VAT earning by at least Tk2,449crore.
Shahnaj believes that the government’s exemptions and the poor collection of outstanding balance made the shortfall.
“If we could earn even the mentioned amount, the shortfall would be half and we may attain 23.43% year-on-year growth,” she claimed.
Though the VAT collection faced a Tk18,580 shortfall in the first nine month, it attained 6.83% year-on-year growth, NBR data said.