Service sectors VAT earnings up by 15pc

Al Amin :
The value-added tax (VAT) collection from 10 major service sectors increased by Tk 5114 crore or 15 per cent in last fiscal year (2022-23), even amid the slowed economic activities.

The 10 service sectors are procurement provider, construction firm, mobile phone, electricity distribution, banking service, warehouse and storage, Izaradaar, BRTC, land development agency, and floor space.

Through the intensified efforts, VAT officials have collected the increased amount registering a 14.80 per cent year-on-year growth during the fiscal year, according to a data compiled by the VAT authority.

Among the sectors, earnings from procurement provider was the highest as collection by the National Board of Revenue (NBR) increased to Tk 11743.1 crore at the end of the outgoing fiscal year from Tk 9058.11 crore was in the previous year.

Earnings from the sector grew by Tk 2684.99 crore or 29.64 per cent during the FY, according to the NBR data.

Followed by the NBR collected Tk 10212.62 crore from construction firm sector, which was Tk 9529.78 crore in the previous FY.

VAT earnings grew by Tk 682.84 crore or 7.17 per cent during the outgoing FY, the data showed.

Besides, the VAT officials earned Tk 9437.75 crore in the last FY, which was Tk 8522.92 crore in the previous FY.

The indirect tax collection grew by Tk 914.83 crore or 10.73 per cent in the last FY.

The VAT earnings from other seven service sectors were Tk 3235.71 crore from electricity distribution, Tk 2120.92 from banking service, Tk 668.7 crore from warehouse and storage, Tk 611.89 crore from Izaradaar, Tk 564.43 crore from BRTC, Tk 538.07 crore from land development agency and Tk 527.99 crore from floor space.

NBR officials, however, said that the growth rate is absolutely positive sign for the country’s economy amid the slowed economic activities.

But, the earnings from the sectors would be more, if the government did not take austerity measures caused by dollar crisis during the FY, they said.

The service sector is the largest contributor to the country’s earnings as the contribution of the sector is half of total GDP in Bangladesh.

Experts said that increase in the prices of service goods in international and local markets have led to the growth in the VAT collection.

But the growth was expected to be higher, which did not occur due to the country’s economic decline, they added.

Through intensified efforts, VAT officials have collected an additional Tk 321 crore, while source-based VAT collection grew by Tk 1828 crore.

VAT collection from hotels and restaurants in the areas also grew by 14 per cent, while sweetmeat shops saw an increase of 25.13 per cent.