Income tax collection fell short of target by Tk 1,244 crore in the first quarter of the current fiscal year 2016-2017 due mainly to slower growth in collection from corporate taxpayers and lower collection from individual taxpayers with submission of tax returns.
According to the provisional data of the National Board of Revenue, taxmen managed to collect Tk 10,690 crore in income tax in the July-September period against the target of Tk 11,934 crore.
Income tax receipt, however, grew by 12.42 per cent in the period of the current fiscal year compared with that of the same period of the FY16 when the revenue board collected Tk 9,562 crore.
Officials of the revenue board said that deficit in corporate tax collection by the Large Taxpayers Unit of the NBR was the main reason behind the overall shortfall in income tax collection in the first three months of the fiscal year.
The LTU faced a shortfall of Tk 758 crore in the period against its target despite the NBR’s lowering the corporate tax collection target for the unit by around Tk 2,000 crore following withdrawal of excess profit tax for banks and their slim operating profit last year.
Commercial banks contribute around 60 per cent of corporate income tax collected by the LTU.
The government in the budget for the current fiscal year withdrew the 15 per cent excess profit tax for banking companies on their profit exceeding 50 per cent of its capital and reserve.
The NBR has fixed the corporate tax collection target at Tk 17,795 crore for the LTU for the year which was Tk 19,780 crore last year.
The NBR officials said some other major income tax zones also failed to meet the target in the first quarter as majority of the individual taxpayers were yet to submit their tax returns and pay the tax.
Most of the individual taxpayers will file their tax returns by November 30, the last day of returns submission, they said.
In previous years, majority of the taxpayers would submit their returns before September 30, the then last date of returns submission, though the NBR used to extend the deadline.
They said that income tax collection would increase significantly in the second quarter of the fiscal year following end of the deadline for returns submission for individual taxpayers while
corporate taxpayers would also deposit their second chunk of advance tax by December.
The revenue board has set a target of income tax collection at Tk 73,368 crore for the current fiscal year.
The total revenue collection target is Tk 2,03,152 crore for the year.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Tax