Revenue collection by the National Board of Revenue grew by 27.05 per cent in July, the first month of the current fiscal year 2017-2018, on a strong growth in customs duty and value-added tax.
The tax authorities collected Tk 12,189 crore in revenue — income tax, customs duty and VAT — in July this year, up Tk 2,595 crore on the same month of last year, according to the NBR data released on Wednesday.
The amount of revenue earnings was Tk 9,594 crore in July last year, the data showed.
Officials of the NBR said that the revenue earnings experienced comparatively better growth in the month amid a robust growth in import and export in the month as well as higher domestic consumption.
The growth, however, is still significantly below the annual growth target (34 per cent) set by the government for the NBR, they said.
Collection of customs duty including import and export duty, and VAT and supplementary duty at import stage grew by 50.62 per cent and VAT collection grew by 18.83 per cent.
Income tax collection, however, witnessed a comparatively slower growth (10.87 per cent) in the month of July, according to the NBR data.
In July, the customs wing collected Tk 2,196 crore against Tk 1,477 crore collected in the same month of last year.
The VAT wing managed to collect Tk 4,355 crore in July, 2017 against Tk 3,665 crore in July, 2016 while the income tax collection stood at Tk 3,057 crore against Tk 2,757 crore.
According to the data, excise duty also witnessed a remarkable growth of 47.21 per cent while turnover tax saw a negative growth of 62.50 per cent.
According to the Export Promotion Bureau, export earnings grew by 26.54 per cent in July, rebounding from a negative growth of 14.94 per cent in the previous month.
Import payments also surged by 47 per cent in July, according to the Bangladesh Bank data.
The government has set a target of revenue earnings for the NBR at Tk 2,48,190 crore for FY18, up 34 per cent on Tk 1,85,000 crore collected in FY17.
Of the FY18 target amount, the NBR will have to collect the highest Tk 91,000 crore in VAT followed by Tk 87,190 crore in income tax and Tk 70,000 in customs duty.
Officials of the NBR said that generally the government set an excessively higher growth target, which would be impossible to achieve by the end of the year.
Revenue earnings on an average grew by 15-19 per cent in last few years, they said.
July growth might be seen as exception as both export and import growth would not be able to continue at the same pace, they said.
In addition, the highest collection target from VAT has been set on assumption that the new VAT law would be implemented from the current fiscal year.
But, the implementation of the law has been deferred for two more years until July, 2019.
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