Mohammed Badrul Ahsan :
The National Board of Revenue faced a shortfall of Tk 37.75 billion income tax collection in July-January period against the target mainly due to sluggish economic activities and declining interest rates of bank deposits, official sources said.
According to the NBR data, 31 income tax zones of the revenue board across the country collected Tk 28,488 crore in July-November period of the FY 2016-17 against the target of Tk 322,63 billion set for the months.
Income tax collection, however, grew by 18.55 per cent or Tk 44,57 billion in the period compared with that of the same period of the last FY 16, the data showed.
In July-November of the last fiscal year, income tax collection was Tk 240,31 billion. Officials of the revenue board also attributed the shortage to higher income tax collection target set for the entire fiscal year.
The government set the income tax collection target at Tk 733,68 billion, more than 35 per cent up from the collection of Tk 542,45 billion in the last fiscal year, they said.
Out of 31 income tax zones, 17 zones missed the collection target while 14 zones achieved the target, according to the data.
Income tax collection including travel tax, however, stood at Tk 291,26 billion in the period.
In July-November, the NBR got Tk 6,38 billion as travel tax.
Large Taxpayers Unit (LTU-income tax) of the NBR experienced the biggest shortfall of Tk 14,97 billion in the period mainly due to slower economic activities and investment in the country.
Corporate taxpayers including banks pay tax at the LTU.
The LTU collected Tk 64,65 billion in July-November against the target of Tk 79,62 billion set for the period.
Income Tax Zone-1, Dhaka, saw a second biggest deficit of Tk 11,71 billion as rates of interest on deposits at banks fell drastically. The zone collects the source tax on interest income from deposits including savings accounts and fixed deposit receipts. People have shifted their savings from banks to national savings schemes which yield higher returns but deduct less tax, officials said.
They said that 90 per cent of the Zone’s collection came from tax at source on income derived from interest on deposits in banks.
NBR officials said that income tax collection would rise in coming months following various measures including enforcement of the law, collecting dues and settling disputes by the tax offices.
