The National Board of Revenue is currently facing a great challenge regarding tax collection. With the current growth rate of collection, it has become almost impossible for the NBR to fetch Tk 102,244 crore in the last two months of the ongoing fiscal year. It succeeded to collect 69 per cent of its overall target until April. According to a report published in a national daily Wednesday, NBR’s tax collection stood at Tk 227,756 crore until April against the target of Tk 330,000 crore.
Officials within the NBR are now doubtful about the prospect of fulfilling the target. The present growth rate of tax collection is 23 per cent, but for fulfilling the target it needs to have a growth of 45 per cent within the remaining two months of the current fiscal. It is an uphill task indeed.
Since the Covid-19 pandemic began, NBR’s tax collection saw a slump, but as now the pandemic is apparently going away, there will indeed be an improvement in the situation in the years ahead. But how could the NBR speed up its tax collection in the present situation?
Firstly, communicating with the large companies that usually give sizable VAT would be a better tool for enhancing tax collection. According to experts, NBR will have to focus on items like cigarettes, mobiles, banks, Bkash, internet and medicine that pay higher revenue to the national exchequer. It is also possible to collect VAT in advance and outstanding revenues from business organisations.
The NBR also can collect information of the foreigners from Bangladesh Investment Development Authority (Bida), vehicles owners from the BRTA, land buying and selling information from the sub-registry offices, power distribution offices and service-oriented offices. Information of flat and house owners can also be collected from the National Housing Authority. By identifying eligible taxpayers who are still out of the tax net, the national tax collectors can increase the revenue earnings.
Even after giving intense effort, to fulfil the target of tax collection will not be possible within the remaining period of the current fiscal. Because of the current pressure on the economy, economic growth would slow down. Monetary tightening, exchange rate shock and possible increase in prices of petroleum and fertiliser is also going to negatively impact the NBR’s tax collection. As hard days are ahead for the economy, policymakers now have to take cautious and realistic decisions.
