VAT collection is expected to return to double-digit growth in October after a temporary decline caused by the shift to quarterly return submissions, said National Board of Revenue (NBR) chairman Ahsan Habib on Tuesday.
He said VAT collection had already recorded 23% year-on-year growth in October and could reach 30% as thousands of payment challans are entered into the system.
Meanwhile, income tax collection grew 14%, while customs revenue increased 16%, he said, describing the overall revenue collection trend as encouraging.
The NBR chairman made the comments at a reception program for the 45th batch of income tax cadre officers at the NBR headquarters in Dhaka's Agargaon, organized by the Bangladesh Civil Service (Taxation) Association.
He said VAT collection growth currently stood at minus 6.6% during the July-October period, largely due to the shift from monthly to quarterly VAT return submissions.
The deadline for submitting returns for the three months was initially October 15, which the NBR extended to October 25.
He said the entry of the resulting payment challans into the system was still underway.
The NBR chairman expressed confidence that VAT collection would return to its historical growth trajectory and achieve healthy double-digit growth.
In the first quarter of the current fiscal year, the revenue authority fell Tk41,879 crore short of its revenue target, as collection grew by less than 2% year-on-year, while VAT collection witnessed major negative growth.
Ahsan urged newly appointed revenue officials to prioritize tax collection and perform their duties honestly and sincerely.
"Remember, the ultimate output of the revenue department is to collect taxes. Your journey begins with a tax return and ends with an e-challan," he said.
Syed Mohidul Hasan, general secretary of the platform, also urged newly appointed tax officials to uphold integrity, ensure fair revenue collection and protect taxpayers' legitimate rights.
He encouraged them to learn from senior colleagues, take responsibility for their work and provide courteous, transparent and efficient services to taxpayers.
Kobir Uddin Mollah, vice president of the association, chaired the event.