NN Online:
The National Board of Revenue (NBR) is proactively seeking solutions to address pending revenue-related cases in courts across the country, aiming to enhance revenue collection.
“We are moving to clear the cases to increase revenue collection,” a senior NBR official told UNB.
He said revenue collection in July and August saw a significant setback due to the prevailing situation in the country.
The NBR is under pressure from the International Monetary Fund (IMF) to boost its revenue collection by closing all loopholes, as Bangladesh has sought an additional $3 billion in budgetary support, apart from the $4.7 billion loan.
According to NBR data, the revenue collection shortfall for the first two months of the current fiscal year was around Tk 16,000 crore. The target for this period was Tk 57,000 crore, but the actual collection amounted to around Tk 41,000 crore.
The revenue collection target for the 2024-25 fiscal year is set at Tk 480,000 crore.
Due to political unrest, economic activities have slowed and imports have declined, contributing to a decrease in revenue collection.
To address this, the NBR is working to resolve more than 27,000 cases related to income tax, VAT, and duty, involving not less than Tk 39,000 crore.
“This is not a negligible amount, and it is increasing daily as revenue-related cases in courts continue to rise,” another senior NBR official told UNB.
NBR Chairman Abdur Rahman Khan recently held a meeting with field-level officials, instructing them to expedite the settlement of revenue-related cases.
The NBR chairman directed officials in the Appellate Tribunal and High Court Division to complete the necessary preparations and resolve these cases quickly to contribute a significant amount of revenue to the national exchequer.
A senior NBR officer who attended the meeting said instructions were given to prioritise recovering the revenue stuck in these cases.
Speaking to reporters after a recent event, the NBR chairman emphasised the government’s commitment to reducing the backlog of cases in the courts. He noted that a separate bench in the High Court deals with NBR-related cases.
He also highlighted the success of the Alternative Dispute Resolution (ADR) mechanism in handling VAT and tax-related cases, saying, “They are working well.”
Meanwhile, an International Monetary Fund (IMF) mission led by Chris Papageorgiou visited Dhaka from September 24-30 to discuss recent developments and the authorities’ reform priorities.
The IMF is reportedly dissatisfied with Bangladesh’s revenue collection performance. The visiting delegation enquired about the reasons for the decline and sought details on the tax rebates granted so far.
The IMF delegation held a meeting with NBR Chairman Abdur Rahman Khan and members, followed by separate meetings with officials from the Income Tax, VAT, and Customs departments at the NBR headquarters in Agargaon.
According to NBR sources, the revenue shortfall for the last fiscal year (2023-24) was Tk 27,500 crore, drawing concern from the IMF.
The IMF advised the NBR to develop a new revenue collection plan and inquired about the number of duty-tax waivers granted in recent years. They recommended reducing these waivers to a reasonable level and emphasised strengthening the automation system, offering assistance in this area.
The IMF also requested a short- and medium-term strategy paper on fiscal sector reforms and offered support in developing the plan.
Bangladesh is currently under a $4.7 billion loan program with the IMF, with three installments already released. Discussions are underway for an additional $3 billion loan.
