The deficit caused mainly to poor showing in earnings from the customs and value added tax (VAT) fronts during the period, it is learned
The National Board of Revenue (NBR) fell revenue shortfall of Tk20,220.75 crore during the first four months (July-October) of the current fiscal year, according to the latest data of the revenue board.
The deficit caused mainly to poor showing in earnings from the customs and value added tax (VAT) fronts during the period, it is learned.
The customs faced a shortfall of Tk7,799.22 crore and vat Tk8,258.62 crore during the quarter, according to the data.
Besides, income tax collection also witnessed a whopping Tk4,162 crore shortfall against their four-month target of Tk23,858.40 crore.
The overall revenue collection, however, increased by only 4.3% year-on-year thanks to a 12.90% growth in income tax. The NBR set 16.28% growth in revenue for the current fiscal year.
Last year, the NBR collected Tk62,393.52 crore revenue in the same period.
Former NBR chairman Abdul Mazid believes the revenue target was very ambitious, which was tough to achieve. But, it was a matter of worry that the year-on-year growth was very low, he added
Mentioning the crisis in the entire economy, Mazid said imports of different products were declining, which was behind the shortfall.
“Some products including instruments of government mega projects are being imported at free of duties, which is another reason,” he told Dhaka Tribune yesterday.
“Besides, the new VAT law is not properly implemented yet,” he said, adding that the NBR has yet to develop online infrastructure and other requirement before launching the scheme.
The new VAT law adaption also interrupted businesses for a time to pay VAT, he added.
Mazid expressed fear that income tax collection might fall further as large corporate taxpayers such as banks and stock traders were passing hard times, though the income tax collection increased the first four months.
The NBR implemented VAT and Supplementary Duty Act, 2012 from the current fiscal year with an aim to increase VAT collection to a significant amount. But it has failed to do that even as of today.
The VAT collection saw only1.79% year-on-year growth during the given period.
In July-October, the NBR collected Tk24,751.57 crore as VAT from domestic businesses, which was Tk24,317.08 crore in the corresponding period of the last year, according to the NBR data.
Besides, the board collected Tk20,649.41 crore from customs duties, which is only 0.09% higher than that of previous year. It was Tk20,631.67 crore last year.
However, the NBR could attain substantial growth in income tax in the period, up by 12.90% to Tk19,695.48 core. It was Tk17,444.77 crore last year.
The NBR has a target of collecting Tk325,600 crore for the current fiscal year, up by 16.28% from the revised target of last fiscal year.