For a country like Bangladesh to record year on year growth in revenue collection even in the face of global economic uncertainty is no small feat.
And that statement holds even further water considering just how ramshackle our current revenue collection mechanism is -- when it comes to any source of revenue, a bulletproof collection system is of paramount. Tax collection is a complicated procedure throughout the world for example, but it is in Bangladesh that this procedure takes on an especially frustrating form.
According to the provisional data from the National Board of Revenue (NBR), 7.67% more revenue has been deposited in the state coffers in the first month of the current fiscal year compared to that of FY22. In July FY23, Tk16,520.45 crore had been collected as income tax, value added tax (VAT), and customs duty, which stood at Tk15,344.25cr in FY22. All of this equates to a year on year collection that has increased by Tk 1,176.2cr.
However, it must be noted that, despite the year on year growth, July’s target for revenue collection is lagging behind by Tk4065.55cr, meaning it was 19.75% lower than the target. Which does make some sense in the context of the current global inflation.
Of course, on the tax end, the NBR must do a better job with its attempts at making paying taxes, and any other tax-related processes, easier. This means ensuring that its projects are on time, and that the online processes are functional.
Bangladesh’s economy has nowhere to go but up, and the further we carry on this trajectory the more important it will become to reinforce our revenue and tax collection systems.
