Revenue collection deficit widens further

Staff Reporter :
The revenue board earned Tk 1,15,620.77 crore against the target of Tk 1,25,334 crore during the first five months (July-November) of the current fiscal year 2022-23) amid the country’s macro-economic instability caused by the Russia-Ukraine war.
During the time, the total revenue collection fell short of Tk 9,713.24 crore of the targets during the first five months period of the current fiscal year, according to a provisional data of the NBR.
During the time, the overall revenue collection from import duty, VAT and income tax has grown by 13.06 per cent, the data showed.
Earning from the Value-Added Tax (VAT) wing was Tk 44,183.83 crore against the target of Tk 45,117 crore with 16.18 per cent year-on-year growth during the time.
Economists, however, said that there is scope to increase VAT collection at the local trading stage.
“Full adoption and effective implementation of the original VAT and Supplementary Duty Act 2012, expansion of VAT base especially on businesses and organization and incentivizing VAT payment with benefits for small businesses to bring them into the VAT coverage as well as promoting increased formalization of businesses currently operating in the informal sector are required to increase earning from the sector,” Dr M A Razzaque, Chairman of RAPID, told The New Nation on Friday.
The revenue board fetched Tk 33,376.94 crore against the target of Tk 35,561 crore with 9.94 per cent year-on-year growth from the income tax wing during the mentioned time.
Abdul Mannan Sikder, Member of the NBR, said that positive changes have been evident into the mindset of the businessmen and individual taxpayers compared to the past as they are becoming compliant every now and then.
“Side by side, the field-level tax officials are strengthening their monitoring system. Considering all these things, there has been a positive growth in revenue collection,” he added.
The NBR collected Tk 38,060 crore against the five months target of Tk 44,596 crore with 12.54 per cent growth from the Customs wing during the aforesaid time.
Officials said that NBR has increased the regulatory duty to discourage the import
of several products including fruits and banks have reduced the opening of letters of credit (LC) for imports, resulting in lower duty collection during the time.
According to the Bangladesh Bank data, the country’s LC opening rate witnessed substantial drops as it fell by 7.24 per cent in October, 21 per cent in September and 11 per cent in August.
The NBR has been giving due importance in checking tax evasion in the customs system side by side the businessmen are now much more compliant since they have taken VAT registration through online and thus paying VAT, Mannan mentioned.