The National Board of Revenue (NBR) faced a revenue shortfall amounting to Tk 168 billion against its target in the first four months (July-October) of the current fiscal year, sources said.
This fiscal the government went for flexible tax policy as national election is scheduled to be held on December 30. The NBR offered multiple incentives and exemptions to the country’s businesses and taxpayers in the last budget, which is one of the biggest reasons behind this big mismatch between the target and collection, tax officials said.
The exchequer, during this tenure, could collect a total of Tk 621.29 billion while the estimated target was Tk 789.28 billion.
As NBR offered multiple incentives to all its revenue collecting regimes i.e. income tax, value-added tax, and customs duty, it faces a big amount of shortage during the beginning months of the year, officials said.
All the three tax wings of NBR witnessed substantial amount of deficiency to their collection in this period, source said.
VAT, which has been determined as the top revenue collecting wing in the last national budget, registered the highest amount of shortage.
The trend has been followed respectively by the customs and income tax wings.
During this period VAT officials could collect a total of Tk 24,315 crore against the target of Tk 3, 1954, making a shortfall of Tk 7,639 crore, source said.
In this connection, Tk 17,182 crore has been collected from income tax and other direct taxes, which is Tk 3,912 crore less than the target while Tk 20,631 has been collected from duties on the export and import procedures, which is also Tk 5,248 short of the projected target.
The exchequer, during this period marked only 6.28 percent rise in its overall revenue collection in comparison with the corresponding period of the last fiscal.
During this period of FY 2017-18 the collection was Tk 58,456 crore, which was 17.34 percent up in comparison with the same period of previous year’s amount.
However, the revenue target, Tk 2.96 trillion was set for NBR for the current fiscal, with estimation to up the collection by 44 percent than that of the last year’s actual collection, Tk 2.05 trillion.
A senior official of the NBR on condition of anonymity told this correspondent that the revenue target set for them this year is quite impossible to meet as the amount is beyond NBR’s capacity level.
He, however, claimed that the revenue earning trend would expedite in the last months of the fiscal though it would not be enough to make up the shortfall.