National Board of Revenue (NBR) is likely to face revenue shortfall for the second consecutive year in 2013-14 as the collection lagged behind by around Tk3,000crore from the revised target of Tk1,25,000 crore.
Till June, the collection stood at around Tk1,22,000 crore, showing shortfalls in all its three wings – Income Tax, Customs and VAT.
Officials were, however, expecting to get a bit more money as some income tax and value added tax has not been adjusted yet.
“Finally, it will fall short, if not much,” a senior official told the Dhaka Tribune yesterday, three days after the end of the fiscal year. “The deficit may come down below Tk1,000 crore, eventually.”
He said the board may come close to the target as all its offices made strong efforts to achieve the target in the last two months of the just concluded fiscal year.
Till April, the revenue fell Tk34,296 crore short of Tk1,25,000 crore. The shortfall came down to Tk21,372 crore in May, according to latest NBR data.
In the last FY2012-13, the revenue fell short of the target by Tk3,644 crore though the NBR was able to achieve its targets in the previous three fiscal years from FY09-10 to FY11-12.
During the last 11 months up to May, the NBR collected Tk1,03,626 crore as revenue with its income tax wing mostly lagging behind the target.
The NBR lags behind Tk2,855 crore in customs duties up to May as it collected Tk30,015 crore against the target of total Tk32,870 crore. The Value Added Tax wing collected Tk38,996 crore against its target of Tk46,850 crore and the income tax wing collected Tk34,041 crore against its target of Tk44,360 crore.
In the other taxes, the NBR has collected Tk574 crore till May against the revised target of Tk920 crore.
The government had earlier revised down the revenue target from original estimate of Tk136,090 crore on apprehension that the target would not be achieved as the collection faced setback due to the political turmoil ahead of the national election held on January 5.
NBR officials feared that the board might face a shortfall around Tk1,000 crore or less in the current fiscal as the taxpayers has failed to pay taxes properly due to the political turmoil that made a severe financial blow to the business sector.
They also said the Large Taxpayers Unit, which collects major part of the revenue from big companies has failed to achieve its target which led to the worst case scenario.
“Private Banks, which contributes a major portion of the revenue failed to pay the expected revenue properly as they failed to meet profit targets in the last year due political turmoil,” said one of them.
The officials said the tax at source on exports, which was slashed in April, was also a reason for lower revenue collection.
NBR Chairman Md. Ghulam Hussain had expressed his confidence to achieve the revised target as he wanted to expedite the collection drive.