Al Amin :
The National Board of Revenue (NBR) is still struggling to come out from the disarray in colleting revenue from the Value-Added Tax (VAT) sector, the largest revenue source of the board.
The revenue collection from VAT declined 18.28 per cent in January of the current fiscal year, compared with the corresponding period of the last year due to lack of introducing proper automation method in the sector.
The NBR received Tk 6872 crore against the target of Tk 12242.94 from the source during the aforesaid period according the provisional data of the board. The deficit in the sector is Tk 5370 crore.
With the shortfall in VAT, the state coffer faced Tk 8239.04 crore shortfalls in revenue collection in the last month blaming sluggish economic activities during ongoing Covid-19 pandemic.
The board collected Tk 19543.71 crore against the target of Tk 27782.75 crore with 3.90 per cent year-on year negative growth during the time, the NBR data said.
The NBR collected Tk 6084.40 crore against the monthly target of Tk 8683.94 crore with 7.80 per cent year-on-year growth from the Customs sector. Gap between target and collection is Tk 2599.54 crore during the time.
On the other hand, the revenue board collected Tk 6587.31 crore against the monthly target of Tk 6855.88 crore from the income tax sector during the same time. The revenue collection deficit is Tk 268.57 crore. The sector comparatively did well during the time.
Economists suggested the NBR should be more creative and tactful to get close to meet the ambitious target of revenue collection set for the current fiscal.Dr Khandakar Golam Moyazzem, Research Director of the CPD, told The New Nation yesterday the shortfall in revenue collection showed that there is a stagnation situation in the country’s economy, although the economic activities have apparently resumed.
Adverse impact of the pandemic is still prevailing on domestic production, consumers’ expenditure and export-import, he said.
Under this circumstance, the revenue shortfall is expected. But overcoming the situation, NBR will have to take measures to utilize the limited scopes of it, he added.
On the other hand, the government should take contraction policy in expending for development project implementation, he further said.
Syed Aminul Kabir, former member of the NBR, said domestic revenue mobilisation is the only way to salvage the Covid-hit economy.
He said income of both individuals and businesses has declined in this pandemic affecting revenue collection.
He stressed the need for intensifying monitoring of tax avoidance, focusing on capacity building, technology use while ensuring a taxpayer-friendly environment addressing the fear factor.
