BUSINESS DESK: The National Board of Revenue (NBR) fell Tk14,907 crore short of its Tk62,294.91 crore target of revenue collection for the first quarter (Q1) of the current fiscal (FY2019-20), according to NBR data.
The shortfall in July-September period was due mainly to a Tk6,106.70 crore shortfall against collection of import duties and a Tk6,429.17 crore shortfall against value added tax (VAT) from domestic businesses.
The target was Tk21,051.44 crore and Tk23,802.64 crore from import duties and VAT respectively.
Besides, income tax collection witnessed Tk2,370 crore shortfall against the target of Tk17,440 crore.
However, overall revenue collection has increased by 2.62% year-on-year to Tk47,388.07 crore, thanks to a 11.56% growth in income tax. Last year, the NBR exchequer collected Tk46,180.41 crore revenue in the same period.
The NBR implemented VAT and Supplementary Duty Act, 2012 from the current fiscal with an aim to increase VAT collection to a significant amount. But it has failed to do that in the first quarter, July-September.
Moreover, the VAT collection saw negative growth in the period.
In July-September, the NBR collected Tk17373.47 crore as VAT from domestic businesses, down by 0.86% from Tk17,524.90 crore in the corresponding period of the last year, according to the NBR data.
Besides, the board collected Tk14,944 crore from export-import duties, which was also 1.34% down from that of previous year. It was Tk15,146.99 crore last year.
However, the exchequer could attain growth in income tax in the period, up by 11.56% to Tk15,69.86 core. It was Tk13,508.52 crore last year.
The NBR has a target of collecting Tk325,600 crore in the ongoing fiscal. It has to collect Tk278,212 crore more in the next nine months.
Former NBR chairman Abdul Mazid said the revenue target was very ambitious, which was tough to achieve. But, it was matter of worry that the year-on-year growth was negative, he added
Mentioning the crisis in the entire economy, Mazid said imports of different products were declining, which was behind the fall in import duty collection.
“Some products including instruments of government mega projects are being imported at free of duties, which is another reason,” he added.
The former chairman believes that the VAT collection fell for the same reason (crisis in economy). “Besides, the new VAT law is not properly implemented yet,” he said, adding that the NBR yet to develop online infrastructure and other requirement of the new law.
The new VAT law adaption also interrupted businesses for a time to pay VAT, he added.
Mazid expressed fear that income tax collection might fall further as large corporate taxpayers such as banks and stock traders were passing hard times, thought the tax collection increased in Q1