The revenue sector contributes significantly in government management and development program, making it one of the most key sectors. Therefore, the government eyes on increasing collection from the sector.
But the revenue sector of the country is fragile now because of the disruption in business caused by the unrest throughout July and the deterioration of law and order following the change of power in August.
Hence, the revenue collection during last July-November has decreased by Tk3,480 crore or 2.62 percent compared to the FY2023-24’s July-November window, according to the updated statistics of the National Board of Revenue (NBR).
According to NBR data, “Revenue collection by sector is decreasing compared to last year. Import duty has decreased by 14.11 percent in November this year compared to November last year. VAT at the import level has decreased by 16.17 percent. Supplementary duty at the import level has decreased by 6.88 percent.”
“In addition, VAT at the local level has decreased by 3.83 percent. Supplementary duty at the local level has decreased by 2.01 percent. Turnover tax has decreased by 40.48 percent. Income tax has decreased by 9.49 percent. Travel tax has decreased by 44.64 percent,” the NBR data continues.
It is known that the revenue target for the FY2024-25 was set at Tk5,41,000 crore. Of this, the target of tax revenue collection of Tk4,80,000 crore was set through the NBR. It was estimated that Tk61,000 crore would come from other sources in addition to income tax, VAT and import and export duties.
But the NBR has not been able to meet its revenue collection target since the first month and the same situation persists even after five months of the fiscal year (FY).
To speed up the revenue collection and to meet the International Monetary Fund’s (IMP) conditions, the government has increased Value Added Tax (VAT), Supplementary Duty (SD) on over a hundred products and services in the mid-FY. The question remains that how much the decision will help the government meet its demand.
The latest data from the NBR shows that the revenue collection target for the first five months of this year was Tk1,69,140 crore. In the five months, the NBR collected Tk 1,26,777 crore. In the same period of the last fiscal year, the revenue collection was Tk1,30,185 crore.
Considering one month, the revenue collection in November of the current FY decreased by 8.95 percent compared to November of the last FY. In November of the last FY, revenue Tk27,850 crore was collected as revenue and in November of the current FY Tk25,359 crore was collected as revenue.
And if we take into account the target for the current FY, it can be seen that the NBR is behind the revenue collection target for the first five months by Tk42,237 crore.
Translated by Afsar Munna
