In the first month of the current fiscal year (FY24), collection of value added tax (VAT) has shown the largest growth among the three main revenue-generating sectors.
VAT collection grew by 21.51% in July compared to the corresponding month of last year, according to the National Board of Revenue (NBR) data.
In July FY23, VAT growth was 10.58% year on year (YOY).
Besides, Comilla, Sylhet, Khulna, Rajshahi, Chittagong, Dhaka East, Dhaka South, Rangpur and Jessore Commissionerates have done relatively well in July of the current fiscal year, with all of them achieving double digit growth rates.
This achievement has also brought about a positive change in terms of total revenue growth.
NBR's total revenue growth in the first month of the ongoing fiscal year hit 15.38% in Y-o-Y.
Among the three divisions of NBR, the Customs Division has grown by 13.70% and Income Tax by 9.65% in July.
Total VAT collected in July was Tk7,654 crore. In July last year, this collection was Tk6,299 crore.
That means year on year, Tk1,355 crore more was collected.
Data analysis revealed that large taxpayers unit (LTU) VAT Commissionerate is at the top in VAT collection for July.
The total collection of LTU was Tk3,561 crore, Tk860 crore more than FY23.
The growth of this commissionerate is 31.86%, which is a record in VAT collection in recent times.
Specifically, the cigarette sector generates the highest VAT.
The total collection in this sector was Tk1,211 crore, 25.92% higher than last year.
Other significant sectors are mobile operators with a 28.40% growth, petroleum gas at 160.70%, petroleum products at 34.46%, ceramic tiles at 16.14%, commercial floor space 14 .19% and procurement services growth at 21.95%.
On the other hand, in VAT deduction at source (VDS) growth was 12.68%.
The VAT in the sweet sector has been reduced from 15% to 7.5% in the FY24 budget.
This means that total VAT collection in this sector has not decreased, but rather increased.
VAT collection of sweet shops has increased by 28% in Y-o-Y.
It is noted that despite various challenges in the economy, the VAT division has seen the highest growth of 16% in the last FY23 as well.