Deficit in revenue earnings by National Board of Revenue stood at Tk 50,425 crore in the first nine months (July-March) of the current fiscal year 2018-2019 due to slow growth in overall revenue collection in the period compared with that of the same period of the previous last fiscal year.
Income tax, value-added tax and customs wings of NBR managed to collect only Tk 1,53,419 crore in July-March of the current FY 2019 against the target of Tk 2,03,844 crore set for the period, according to provisional data of NBR.
Revenue collection grew only by 7.11 per cent in the period, the poorest growth in recent years, against the same period of last FY 2017 when NBR had collected Tk 1,43,236 crore, the data showed.
Revenue earnings grew on an average 14 per cent in last five years.
NBR will have to collect Tk 1,42,782 crore, which is 51.8 per cent of total collection target of Tk 2,96,201 crore set for the entire fiscal year, in the last three months of the fiscal year.
According to NBR data, VAT wing of NBR collected the highest 60,118 crore followed by customs duty at Tk 46,930 crore and income tax at Tk 46,317 crore in July-March of FY 2019.
Income tax collection, however, grew by highest 12.06 per cent while VAT collection by 6.52 per cent and customs duty collection grew only by 1 per cent in the period.
VAT, customs duty and income tax collection was Tk 56,438 crore, Tk 46,467 crore and Tk 41,330 crore respectively in July-March of FY18.
Government has set VAT collection target at highest Tk 1.10 lakh crore followed by income tax collection target at Tk 1,00,201 crore and customs duty at Tk 84,000 crore for FY19.
The government, however, is likely to cut the revenue collection target for the ongoing fiscal year following sluggish trend in revenue mobilisation and huge and growing deficit between the target and collection.
NBR requested the government to slash the target by Tk 50,000 crore while finance ministry hinted that the target would be cut down only by Tk 16,000 crore.
The shortfall was Tk 41,139 crore in the first eight months (July-February), Tk 34,425 crore in seven months (July-January) and Tk 29,000 crore in six months or July-December of the fiscal year.
NBR chairman Md Mosharraf Hossain Bhuiyan last week during a meeting between NBR and finance minister said that revenue collection always remained sluggish in the first three quarter of any fiscal year.
Revenue collection gets pace in last two-three months, particularly May and June when taxpayers pay advance income tax, the government disburses bills for development works and traders settle more import payments, he said.
Officials, however, said that NBR would obviously fail to achieve the target as the target itself a very high ambitious.
NBR also offered huge tax exemption in the current fiscal year while import of commercial products and domestic consumption grew slow in the period, they said.
They said that the government’s estimated GDP growth and inflation was not reflected in revenue mobilisation due to unknown reasons.
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