Revenue shoots past target
Rejaul Karim Byron
Revenue earnings by the tax administrator increased by around 16 percent in the first four months of the current fiscal year, which is more than the target set for the period.
However, the National Board of Revenue (NBR) is lagging in revenue collection compared to the growth target for the entire fiscal year at 21.52 percent, officials said.
During the July-October period, the revenue earnings were recorded at Tk 24,740 crore against the target of Tk 24,672 crore.
The revenue collection was Tk 21,376 crore in the same period last year.
This year’s target is Tk 91,870 crore.
An NBR official said, though the revenue collection growth was slow in the first four months of the current fiscal year, the earnings will cross the target at the end of the year.
He said the growth during the four months was a bit slow compared to the entire year’s target mainly due to a fall in the collection of value added tax (VAT) at the domestic and import levels.
During the four-month period, the revenue earnings growth was 12 percent at the import level, while VAT collection grew 14 percent at the local level. However, the growth in income tax was 25.3 percent.
The official said the growth was slow as tax had to be reduced in many cases for the sake of the overall economy.
The NBR took a number of initiatives to boost the ailing stockmarket of the country.
The tax administrator will also take two major steps as part of the ongoing discussions on the rescue package for the stockmarket.
The NBR will withdraw 10 percent tax on the profit the institutional investors make in the secondary market.
The NBR will also withdraw 10 percent tax from foreign direct investment in the share market, leading to a revenue loss of around Tk 500 crore.
The official said they withdrew duty on import of sugar and reduced it on edible oil, which caused a low collection in import duty.
Besides, car import also fell much compared to the last fiscal year, when a large amount of duty was collected from such imports.
Imports grew by more than 40 percent last year.
However, according to statistics, import growth was 22 percent in the first three months of the current fiscal year. As a result revenue earnings dropped at the import level.
The NBR official said, as gas production did not grow much and growth in the mobile telephone sector marked a fall, VAT collection dropped at the local level.