The government has cut tax-revenue collection target by only Tk 16,138 crore or 5.45 per cent of the original target set for the current fiscal year of 2018-2019.
National Board of Revenue officials said that it would be tough for NBR to achieve the revised target also as the shortfall in collection in the first nine months (July-March) of the fiscal year stood more than Tk 50,000 crore with a slower growth in tax receipt.
NBR earlier requested the government to cut the target by Tk 50,000 crore for the year.
NBR will now have to collect Tk 2,80,063 crore in FY19 instead of Tk 2,96,201 crore, the original collection target.
Revenue collection should grow by around 36 per cent compared with the revenue collection (Tk 2,06,000 crore) in FY18 to achieve the revised target.
Statistics wing of NBR has already redistributed the targeted amount among customs, value-added tax and income tax wings.
Tax officials termed the revised target also an ambitious one compared with the growth at 7.11 per cent NBR achieved in the first nine months of FY19.
They said that income tax, value-added tax and customs wings managed to collect only Tk 1,53,419 crore in July-March of FY19 against the target of Tk 2,03,844 crore set for the period, widening the deficit to Tk 50,245 crore as per the original target.
As per the revised target, tax officials will have to collect Tk 1,26,644 crore in the remaining three months of the fiscal year meaning that they would have to collect Tk 42,214 crore each month.
Though revenue collection grows significantly in last two months — May and June, there was no previous instances of collecting revenue at such a rate, they said.
NBR collected Tk 18,238 crore and Tk 26,935 crore in May and June respectively in FY18, according to NBR data.
In March 2019, the revenue mobilisation stood at Tk 19,958 crore, the data showed.
As per the revised target, the VAT wing will have to collect the highest — Tk 1,04,006 crore — with 32 per cent growth rate while the income tax wing will have to collect Tk 96,632 crore with 47 per cent growth compared with the collection in FY18.
The customs wing will have to collect Tk 79,425 crore with around 29 per cent growth compared with that of last year’s collection.
VAT, income tax and customs duty collection was Tk 78,894 crore, Tk 65,695 crore and Tk 61,818 crore respectively in FY18.
The original revenue collection target for FY19 was Tk 1.10 crore for the VAT wing, Tk 1,02,201 crore for the income tax wing and Tk 84,000 crore for the customs wing.
Senior officials of NBR, however, said that they had engaged all-out efforts to meet the revenue collection target.
NBR on May 13 formed a special committee consisting five senior members of income tax, customs and VAT wings to expedite revenue collection and monitor activities of field-level offices, they said.
The committee would take necessary steps including settlement of disputes and realising arrears.
NBR also empowered the committee to freeze bank accounts and take steps to file certificate cases to realise income tax.
It will also visit field offices and monitor tax deduction at sources, they added.
NBR chairman Md Mosharraf Hossain Bhuiyan last week at a meeting between the NBR and the finance minister said that revenue collection would get pace in May and June when taxpayers would pay advance income tax, the government would disburse bills for development works and traders would settle more import payments.
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