NBR misses VAT collection target in H1’FY23 from big banks

News Desk :
The National Board of Revenue (NBR)’s collection of value added tax (VAT) from 17 large banks fell short by nearly 7% or Tk153 crore for the first half of the current fiscal year 2022-23 (FY23).
As of December 2022, large taxpayers unit (LTU) under the NBR’s VAT wing collected Tk2, 087 crore during July-December period of FY23 against the period’s target of Tk2, 241 crore.
In the same period last year, the collection stood at Tk1, 876 crore, according to latest data from the NBR.
Officials attributed the less-than-expected earnings to a sort of uncomfortable situation in the banking sector amid allegations of irregularities that eroded depositors’ confidence and discouraged people to seek services from the banks.
However, the collection of consumers’ tax grew by 11.25% in H1 compared to that of the corresponding period last year.
Agrani Bank, AB Bank, Dhaka Bank, Uttara Bank, Prime Bank, Pubali Bank, Standard Chartered Bank, National Bank, Premier Bank, Bank Asia and Southeast Bank paid less than what the NBR expected from these banks in H1.
Standard Chartered Bank and Bank Asia paid 44.59% and 7.35% less than the amount of VAT they paid in the same period last year.