The National Board of Revenue (NBR) has been under heavy pressure on revenue collection in the last quarter of the current fiscal year. In the first 6 months of the financial year (July-March), the revenue deficit stands at Tk. As a result, the NBR will have to earn an average of Tk 2,220 crore daily in the next three months (April-June), which is about two and a half times higher than the daily average of Tk 1 crore (Tk 1 crore).
According to NBR data, the revised revenue target in the current fiscal year is Tk 1 lakh 5 thousand 5 crore. Of this, the first six months were collected at Tk 2 lakh 5 thousand 5 crore. That is, in the remaining 6 months, the NBR has a huge target of collecting Tk 2 lakh 5 thousand 5 crore.
There is growth, but the deficit is even higher
The three main sectors – the main sectors, the VAT (VAT) and the import duty – the target has not been met in all the categories.
The target in the income tax sector was Tk 1 lakh 5 thousand 5 crore, and Tk. The deficit is Tk 20 thousand 5 crore.
The VAT sector has been collected at Tk 8,8 crore, where the target was Tk 1 lakh 5 thousand 5 crore. The deficit is Tk.
The tariff sector has been collected at Tk 8,220 crore, the target was Tk. The deficit is Tk.
Multiple NBR officials said that the Eid holidays in March and the transfer of the British American Tobaco factory have been postponed. Besides, the contribution of around Tk 1,000 crore has not been added in March.
IMF's stress and reality
The International Monetary Fund (IMF) has set a goal of increasing the tax-GDP ratio from 6.5 percent to 5.7 percent within the current fiscal year. There is an additional pressure on the NBR to increase the revenue collection to achieve this goal. However, officials believe that the slowdown of trade, imports, contraction and political unrest has had a negative impact on taxation.
‘The targets are not realistic at all times’
A senior NBR official said on condition of anonymity, “Every year, the big target is set for us, which is not always logical in view of the reality. This time the target was Tk 1 lakh crore, which has been reduced to 1 lakh 5 thousand 5 crore.
NBR in the face of challenging periods
Currently the challenge in front of the NBR is to reduce the huge shortage, increase income tax return, expand the online VAT system and ensure effective supervision to prevent revenue. Beyond this, the initiative to rearrange tax structures at the policy level, spread the debt and bring the informal economy into the formal sector.
