Income tax collection up by record 25pc in Q1
Doulot Akter Mala
Income tax collection posted a record 25 per cent growth in the first quarter (Q1) of the current fiscal year (FY) 2011-12, following motivational campaigns and strong enforcement of relevant fiscal measures.
In the July-September period of this fiscal, the income tax wing of National Board of Revenue (NBR) collected a total of Tk 44.82 billion as tax revenues against its target of Tk 41.46 billion. The wing collected Tk 35.95 billion in the first quarter of the previous fiscal.
“It’s a record. Income tax collection never posted such a remarkable growth in the first quarter,” said NBR member Syed Aminul Karim.
“We have observed voluntary compliance among people this year. A taxpayer Sunday came with Tk 100 million income tax, stuck up in different cases in the court.”
Besides, the trend of filing cases by the taxmen has reduced significantly due to massive motivational campaigns.
Once Alternative Dispute Resolution (ADR), the out-of-the court settlement process, is introduced, the number of cases will further decline, he said.
The tax fair contributed a big chunk of revenue to the public exchequer in the first quarter. The NBR received a total of Tk 4.14 billion as income tax during the fairs, held simultaneously in seven divisions in September.
“We have shown zero tolerance on tax evasion, and also turned the tax department into a service provider from a regulator, and it is a paradigm shift,” he added.
Another tax official said budgetary measures also helped the NBR to collect a significant amount of advance tax from service sectors.
“This year, the revenue board spread the net of advance tax to almost all areas in service sector. Proper monitoring of advance tax collection will bring a significant amount of income tax,” the official said.
The largest portion of tax comes from advance tax at import stage and service sectors, he added.