Gazi Anowarul Hoque :
The National Board of Revenue(NBR) fears to achieve their revenue collection target in the current fiscal year (FY) 2014-15, mainly due to slowdown in economic activities, sluggish domestic consumption and political instability, officials of the National Board of Revenue said.
The current budget has been set at Tk2,50,506 crore, including a target of at Tk1,82,954crore. Of the total budget Tk 1,49,720 crore which will be collected from direct tax, Tk27,662crore from Non-tax revenue and Tk 5,572 crore from Non NBR tax revenue.
According to the latest data, revenue earnings fell short of target by Tk 1,438 crore in the first five months (July-November) of the current fiscal year as taxmen collected Tk 47,765.63 crore against the target of Tk 49,204.03 crore set for the period.
In the remaining period of the fiscal year, the NBR will have to collect more than 68 per cent of total target that will be an extremely difficult task for the taxmen under the existing economic and political situation in the country, officials said.
“Revenue shortfall might hit a record by around Tk15,000 crore in the current fiscal year if the overall economic situation does not improve in the coming months,” a high tax official said on last Wednesday to the New Nation.
Any probable political instability, which is largely feared, may deteriorate the revenue collection scenario, he said.
Based on the revenue collection trend in first five months of the fiscal year and sluggish macroeconomic situation in the country, the revenue board estimated that it could hardly collect around Tk 1,37,000 crore by the end of the year against the target of Tk 1,49,720 crore set for the entire fiscal year 2014-15.
According to the NBR estimate, all the three wings – income tax, value-added tax and customs duty – of the revenue board may miss their respective targets in the year.
Data shows that the Revenue Board missed the target in the FY 2012-2013 by Tk 3,644.11 crore for the first time in the previous tenure of the Awami League-led government.
The NBR also failed to achieve the revenue collection target in the last fiscal year of 2013-2014 by Tk 4,487.17 crore.
Revenue Board officials pointed the low rate of tax collection mostly for the political uncertainty prevailing in the country. Besides, sluggish investment, lack of awareness about tax payment and widespread culture of tax evasion are responsible for the situation.
Some large sectors, including mobile phone, cigarette and other services sector have also failed to perform up to expected level in the last few months, they opined.
The Revenue Board has already informed the matter to concern authority, they added.
In the first half of the fiscal year, economic activities remained dull along with sluggish trend in domestic consumption despite stable political situation in the country, they said, adding that revenue collection might be hampered further if the situation, both economic and political, deteriorates.
According to the NBR estimate, income tax is likely to experience the highest amount of shortfall by Tk 4,808 crore in the current fiscal year followed by value-added tax by Tk 4,796 crore, customs duty by Tk 3,032 crore and other taxes by Tk 84 crore by the end of the year.
Taxmen may collect around Tk 51,772 crore as income tax, Tk 51,704 crore VAT, Tk 32,688 crore customs duties and Tk 836 crore other taxes, the estimate showed.
The NBR set a collection target of Tk 56,580 crore as income tax, Tk 56,500 crore VAT, Tk 35,720 crore customs duties and Tk 920 crore as other taxes for the entire fiscal year.
The National Board of Revenue(NBR) fears to achieve their revenue collection target in the current fiscal year (FY) 2014-15, mainly due to slowdown in economic activities, sluggish domestic consumption and political instability, officials of the National Board of Revenue said.
The current budget has been set at Tk2,50,506 crore, including a target of at Tk1,82,954crore. Of the total budget Tk 1,49,720 crore which will be collected from direct tax, Tk27,662crore from Non-tax revenue and Tk 5,572 crore from Non NBR tax revenue.
According to the latest data, revenue earnings fell short of target by Tk 1,438 crore in the first five months (July-November) of the current fiscal year as taxmen collected Tk 47,765.63 crore against the target of Tk 49,204.03 crore set for the period.
In the remaining period of the fiscal year, the NBR will have to collect more than 68 per cent of total target that will be an extremely difficult task for the taxmen under the existing economic and political situation in the country, officials said.
“Revenue shortfall might hit a record by around Tk15,000 crore in the current fiscal year if the overall economic situation does not improve in the coming months,” a high tax official said on last Wednesday to the New Nation.
Any probable political instability, which is largely feared, may deteriorate the revenue collection scenario, he said.
Based on the revenue collection trend in first five months of the fiscal year and sluggish macroeconomic situation in the country, the revenue board estimated that it could hardly collect around Tk 1,37,000 crore by the end of the year against the target of Tk 1,49,720 crore set for the entire fiscal year 2014-15.
According to the NBR estimate, all the three wings – income tax, value-added tax and customs duty – of the revenue board may miss their respective targets in the year.
Data shows that the Revenue Board missed the target in the FY 2012-2013 by Tk 3,644.11 crore for the first time in the previous tenure of the Awami League-led government.
The NBR also failed to achieve the revenue collection target in the last fiscal year of 2013-2014 by Tk 4,487.17 crore.
Revenue Board officials pointed the low rate of tax collection mostly for the political uncertainty prevailing in the country. Besides, sluggish investment, lack of awareness about tax payment and widespread culture of tax evasion are responsible for the situation.
Some large sectors, including mobile phone, cigarette and other services sector have also failed to perform up to expected level in the last few months, they opined.
The Revenue Board has already informed the matter to concern authority, they added.
In the first half of the fiscal year, economic activities remained dull along with sluggish trend in domestic consumption despite stable political situation in the country, they said, adding that revenue collection might be hampered further if the situation, both economic and political, deteriorates.
According to the NBR estimate, income tax is likely to experience the highest amount of shortfall by Tk 4,808 crore in the current fiscal year followed by value-added tax by Tk 4,796 crore, customs duty by Tk 3,032 crore and other taxes by Tk 84 crore by the end of the year.
Taxmen may collect around Tk 51,772 crore as income tax, Tk 51,704 crore VAT, Tk 32,688 crore customs duties and Tk 836 crore other taxes, the estimate showed.
The NBR set a collection target of Tk 56,580 crore as income tax, Tk 56,500 crore VAT, Tk 35,720 crore customs duties and Tk 920 crore as other taxes for the entire fiscal year.
