Tax collection Tk 33,303cr short of target in July-Jan


Revenue collection by National Board of Revenue fell short of the target by Tk 33,303 crore in July-January of the current fiscal year (2018-2019) due mainly to failure of all three wings of the tax authorities in achieving their respective targets.
According to the NBR provisional data, tax officials could collect only Tk 1,17,797 crore in the first seven months of FY19 against the target of Tk 1,51,100 crore set for the period.
Revenue collection grew by only 7.09 per cent in the period, much lower than the average growth rate of 14 per cent in last five years, the data showed.
NBR faced a deficit in value-added tax of Tk 13,975 crore, customs duty Tk 11,328 crore and income tax Tk 8,000 crore.
Tax officials managed to collect Tk 46,025 crore in VAT, Tk 36,772 in customs duty and Tk 35,000 crore in income tax in the period.
The target was Tk 60,000 crore, Tk 48,100 crore and Tk 43,000 crore for VAT, customs duty and income tax respectively.
Income tax collection grew by 11.20 per cent while VAT and customs duty collection grew by 6.52 per cent and 4.18 per cent respectively in the first seven months of this fiscal year.
NBR officials said that growth in revenue collection in July-January was the lowest in recent times.
NBR has been taking several measures to bring pace to the collection but it is yet to see any satisfactory improvement, they said.
They, however, identified some reasons including offering exemption to some major sources of revenue collection behind the shortfall.
NBR gave exemption worth around Tk 11,000 crore to the gas sector following import of liquefied natural gas.
Failure in implementing new VAT law also slowed the pace in VAT collection, they added.
NBR is now emphasising collecting outstanding revenue from various government agencies including Petrobangla and BPC which owe more than Tk 22,000 crore to the revnue board.
Finance minister AHM Mustafa Kamal has also sought explanations for the slow pace in revenue collection, officials said.
They said that the government, like previous years, would soon revised the collection target downward from the current Tk 2,96,201 crore set for the entire year following the sluggish growth.