Shortfall in tax collection against target rising every month

Jasim Uddin | Published: 22:24, Dec 19,2017 | Updated: 23:06, Dec 19,2017

 
 

A file photo shows containers stacked in the Chittagong port. Shortfall in revenue collection by the National Board of Revenue is widening every month although the tax officials are chasing to meet the ambitious collection target set for the fiscal year 2017-2018. — New Age photo

Shortfall in revenue collection by the National Board of Revenue is widening every month although the tax officials are chasing to meet the ambitious collection target set for the fiscal year 2017-2018.
Deficit in tax receipts rose to Tk 9,550 crore in July-November of FY18 from Tk 6,561 crore in July-October, according to provisional data of NBR.
The gap between the target and collection was Tk 3,355 crore in the first quarter of the year.
Officials of NBR said that revenue collection was falling short of target every month, despite healthy year-on-year growth, mainly because of bigger target of Tk 2,48,190 crore with 34 per cent growth set for the year by the government.
Revenue collection grew by 16.68 per cent in the first five months of the year compared with the same period of FY 2016-2017.
The tax authority maintained an average growth in revenue collection at 14.28 per cent in the last five years with the highest growth at 18.96 per cent in FY17, they said.
NBR collected Tk 1,85,004 crore in FY17.
Growth rate in collection has been on a declining trend from the initial months in the year.
In July-September, revenue collection grew by more than 20 per cent year-on-year which dropped to 18.23 per cent in July-October.
According to NBR data, tax officials managed to collect Tk 74,516 crore in July-November against the target of Tk 84,066 crore set for the months.
Earnings in value-added tax fell short of the target by the highest Tk 4,500 crore followed by income tax by Tk 3,548 crore and customs duty by Tk 1,502 crore in the period.
VAT, income tax and customs duty collection grew by 13.34 per cent, 15.60 per cent and 21.81 per cent respectively in the period compared with the same months of FY17.
NBR collected Tk 28,277 crore in VAT, Tk 21,646 crore in income tax and Tk 24,593 crore in customs duty in July-November against the target of Tk 32,778 crore, Tk 25,194 crore and Tk 26,094 crore respectively.
The revenue board will have to collect Tk 91,000 crore in VAT, Tk 87,190 crore in income tax and Tk 70,000 crore in customs duty in the current fiscal year.
Officials of NBR on Sunday told New Age that although revenue earnings were growing at satisfactory rate due to intensive efforts by the tax officials, it was not enough to achieve the monthly or periodic targets that had been set in line with the annual target.
NBR authorities have been issuing instructions to the field offices to increase their efforts in collecting dues and unearthing evasion to meet the target, they said.
They, however, said that the revenue collection would get further momentum at the latter half of the year with the rise in government expenditure under the annual development programme (ADP).
The target may also be slashed, like previous years, by the last quarter of the year to adjust the target with overall economic growth, they added.
Deferment of implementation of new VAT Act-2012 is another reason for the possible cut in the annual revenue collection target as the government set the target for VAT collection in line with the measures under the new law.

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