NBR misses revised revenue target by Tk 50,000cr
The National Board of Revenue (NBR) logged Tk 230,000 crore in tax in the just concluded fiscal year but failed to reach the target for the seventh consecutive year.
NBR Chairman Md Mosharraf Hossain Bhuiyan shared the collection figure at a workshop organised by the Dhaka Chamber of Commerce and Industry (DCCI) at the Cirdap auditorium in the capital yesterday.
The tax authority was initially given the task of raising Tk 296,201 crore for fiscal 2018-19 and the target was revised down to Tk 280,000 in the face of sluggish growth of collection.
The collection data shared by Bhuiyan showed that the NBR managed to attain 82 percent of the revised target last fiscal year, falling short of Tk 50,000 crore.
“There is criticism from the media and think-tanks that we have missed the target. But tax collection is not a matter of coercion,” he said at the workshop on “Awareness Raising on Value Added Tax and Supplementary Duty Act-2012.”
This was the seventh year in a row the NBR missed the tax collection goal set by the government, ignoring warning from economists that the lofty targets would remain unachieved.
For example, the target was 43 percent higher from the NBR’s provisional collection of Tk 206,407 crore in fiscal 2017-18.
Bhuiyan said raising awareness among the general people is essential to collect the increased amount of tax.
Only 20 lakh people submit tax returns out of nearly 17 crore people in the country. So, widening the tax net is mandatory to increase the revenue, he said. He said the NBR started implementing the new VAT law from July 1.
“We have introduced different rates for different commodities. In developed countries, there is a unified system. We amended it for the benefit of the businesses,” said Bhuiyan.
He called upon businessmen to pay VAT and tax properly so that the country can carry out development activities.
“In comparison with other countries, the VAT and tax rates are very low in Bangladesh.”
Bhuiyan also warned against collusion between taxmen and businesses to evade tax.
“If any official harasses you regarding VAT collection, tell us. We will hold him accountable,” he said.
He said he had to grant leave of many of his officials for Hajj. “However, what is the benefit of performing Hajj if ill practices don’t come to an end?”
Osama Taseer, president of the DCCI, said the VAT-free turnover limit has been increased to Tk 50 lakh and the VAT refund system has been introduced.
Import of capital machinery has been exempted from advance income tax which would help the private sector, he said.
“To attain the expected economic development, the private investment-to-GDP ratio should be 30 percent.”
