He said the shortfall would affect the economy
The government would miss the July-December revenue target as the revenue board failed to procure Electronic Fiscal Devices (EFDs) to facilitate enforcement of the VAT law, Finance Minister AHM Mustafa Kamal said on Wednesday.
He said the shortfall would affect the economy.
Blaming the National Board of Revenue (NBR) for the failure, Kamal said, "Tax revenue will be affected. It was due to their (NBR) failure in setting up VAT machines (EFDs). They could not even procure the machines. NBR chairman had assured me of having the machines by July 1. Unfortunately, they could not …,”
Kamal was briefing the media after two consecutive meetings of the cabinet committee of the government purchase (CCGP) and economic affairs (CCEP) at the secretariat.
"I told them (NBR) that I would enforce VAT law from July 1 and I want everything ready," he added, adding, "I trusted him, but he failed."
The minister, however, claimed that the loss in tax revenue mobilization in July-December period would be covered by accelerating efforts in next six months, to achieve the fiscal's target.
The government has set a target to collect Tk325,500 crore in tax revenues for the entire fiscal year starting on July 1.
In the first quarter, up to September 2019, total collection stands at Tk47,338.07 crore against the target for the quarter of Tk62,294.91 crore, according to NBR data.
To bring the VAT calculation under the net of electronic coverage, there is a need for about 6,00,000 EFD machines. The NBR recently floated a tender to procure only 10,000 EFD machines.
The finance minister said the current problems in the economy might be frustrating. "You will see every sector's bright outcome at end of the fiscal."
He said: "What we need to do is to keep strong our manufacturing sector by various incentives, policy supports and, if needed, interest rebate."