Revenue earning deficit widens to Tk23,000cr in six months
Al Amin :
Revenue collection deficit widened to Tk 23,000 crore in first six months (July-December) period of the current fiscal year (2023-24) for what NBR officials blame political unrest and slowed economic activities caused by global recession.
The National Board of Revenue (NBR) will have to collect over Tk2,64,371 crore more in next six months to meet the annual target of Tk 4,30,000 crore, which is quite impossible.
The public exchequer managed to collect Tk 1,65,629 crore registering 13.89 per cent year-on-year growth against the half yearly target of Tk 1,88,856 crore during the mentioned period, according to provisional data of the revenue board.
It means the revenue collection deficit increased to Tk23,227 crore. The government agency fetched Tk 1,45,431 crore in the corresponding period of last fiscal year, the data showed.
In the same period of last FY, the revenue collection growth was 10.64 per cent and 10.64 per cent in last five years, NBR data said.
The revenue board earned Tk 49,068 crore with a 9.16 per cent year-on-year growth from customs wing against the target of Tk 57632 crore during the July-December period. The figure was Tk44,950 crore in the same period of last FY.
On the other hand, the NBR earned Tk 64,737 crore posting 15.94 per cent year-on-year growth from Value-Added Tax (VAT) sector against the half-yearly target of Tk 70,807 crore during the time. The revenue board fetched Tk55,838 crore from the sector in the same period of last year.
The government agency collected Tk 51,824 crore with 16.09 per cent year-on-year growth against the target of Tk 60,417 crore from income tax wing during the mentioned period.
NBR officials blamed the slowed economic activities caused by political unrest and global recession for slow pace in revenue collection during the time. Besides, import restriction on luxury goods was also another reason for it, they added.
“The business sector enduring a sluggish period due to the foreign exchange crisis was the prime reason for the relatively slower growth.
Adding to that was the central bank adopting a contractionary monetary policy, resulting in credit growth also slowing down, and a drop in government expenditure due to austerity measures amid macroeconomic pressure stemming from Russia’s invasion of Ukraine,” said an official wishing his anonymity.
Besides, businesses activities were squeezed in the country due to political unrest ahead of the national elections, he added. Dr Zahid Hussain, former lead economist of the World Bank’s Dhaka office, told The New Nation, “The current revenue collection growth is not bad in the present context.
Imports dropped 25 per cent so production is being affected. The inflation rate is also high. In this situation, 13.89 per cent growth in revenue collection is good.”
“It was possible as the price level has been hiked amid the devaluation of the local currency. So, a positive impact was seen in value-added tax,” he added.
