NBR: Revenue shortfall to be only Tk7,675cr

The National Board of Revenue has said the current fiscal year is likely to witness a revenue shortage of around Tk7,675 crore despite non-implementation of VAT Law. NBR Chairman Nojibur Rahman told the Finance Minister AMA Muhith at a meeting held on Thursday. The revenue board could easily cover the shortage by earning from other sectors like increasing the tax on cigarettes, officials said quoting Nojibur. Muhith, however, agreed to not change the revenue target and budget outlay immediately after discussion with the NBR chair, according to meeting sources. People's standard of living has been raised in line with their purchasing capacity while Gross Domestic Product (GDP) has increased, officials said. The revenue generation from VAT is likely to be around Tk83,600 crore, Tk7,675 crore short of the target of Tk91,275 crore for the current fiscal year. NBR increased the revenue target by 34% to Tk91,275 crore in the current fiscal year through VAT. It will cover the shortage from income tax and import duties. Earlier the deficit was estimated to be around Tk67,000 crore. An estimated Tk5,000 crore will be earned from taxes and duties on cigarettes and biris, Tk500 crore from bank accounts and Biman tickets as excise duties, and Tk100 crore from fast food and 10% supplementary duties on them. Some Tk6,000 crore will be earned from other sectors, according to Internal Resources Division. NBR will realise Tk2,000 crore of Tk22,000 crore from Petrobangla as dues in the current fiscal year. In Fiscal Year 2017-18, GDP increased to Tk22,23,600 crore from the previous year’s Tk19,56,066 crore, a 13.67% rise.