Revenue receipts by the tax authority shot up 24 percent year-on-year to Tk 12,068 crore in November, raising the government’s hopes of hitting its ambitious earning target for the fiscal year.
In the same month a year ago, the National Board of Revenue realised Tk 9,729.87 crore.
The revenue collection went up about 14 percent in the first five months of fiscal 2015-16 to Tk 54,407 crore.
However, the NBR has failed to hit the target of Tk 62,715.60 crore for the July-November period.
The revenue income came in contrast to doubts over whether the government would be able to reach its 29 percent target given the historical average as well as the gloomy economic scenario both at home and abroad.
Bangladesh could average 15-20 percent in annual revenue income since 1971. In fiscal 2014-15, the growth was 17.28 percent.
NBR Chairman Md Nojibur Rahman said the state agency would be able to reach its target by deploying qualified officials in important positions, curbing harassment faced by businesspeople, engaging government organisations and beefing up monitoring.
Steps have been taken to establish governance at the NBR, he said in a statement, adding that despite being a challenge, the revenue generation target is within the NBR’s reach.
In fiscal 2014-15, the NBR realised about Tk 137,000 crore against the target of Tk 135,028 crore.
However, it failed to reach its targets in the three fiscal years preceding fiscal 2014-15.
The most credit for the higher revenue income went to VAT, which posted a growth of 32.49 percent, thanks to stringent monitoring as well as success in recouping dues from companies. The Chittagong Commissionrate recorded 138.91 percent increase in VAT collection, while the Large Taxpayers Unit saw its collections rise 40.45 percent.
Incomes from the customs duties grew 26.72 percent and income taxes 10.77 percent. The NBR said the revenue generation from income taxes lagged behind the target in November as December is the month to deposit the instalment of the second quarter.
“So, revenue collection from income taxes will go up in December. As a result, the revenue income would exceed the target at the end of the fiscal year,” it said.
The NBR recently signed an annual performance agreement with the government and adopted a string of strategies to help the government implement the budget. “The budgetary target on revenue will be reached as a result of these steps,” said Rahman.
He said steps have been taken to realise about Tk 23,000 crore in dues from state-run Petrobangla and Bangladesh Petroleum Corporation.
Rahman also said there are about 24,000 court cases across the country involving Tk 31,000 crore. In coordination with the Attorney General’s Office and the judiciary, measures have been taken for speedy resolution of these pending cases.
At the same time, steps have been taken to introduce alternate dispute resolution.
“These steps will help reach the revenue generation target at the end of the year,” Rahman said.
Source: The Daily Star
