Revenue collection by the National Board of Revenue fell short of target by Tk 5,644 crore or 8.11 per cent in the first five month of the current fiscal year as the target was ‘colossal’ and the country witnessed slower-than-expected economic activities in the period.
The collection, however, grew by 16.51 per cent or Tk 9,056 crore in the July-November period of the FY 2016-17 compared with that in the same period of last fiscal year.
Taxmen managed to collect Tk 63,920 crore in value-added tax, income tax and customs duty in the five months against the target of Tk 69,564 crore, according to the NBR data.
Officials of the NBR said that the government set a whopping revenue collection target at Tk 2,03,152 crore for the entire fiscal year, which is Tk 47,633 crore or 30.63 per cent higher than the earnings posted in the previous year.
In the FY 2015-2016, the NBR collected Tk 1,55,518.72 crore in taxes.
Revenue generation on an average grew by 14.43 per cent in last five years, the data showed.
The economy is not performing in line with the projections on which the excessive collection target was set, NBR officials said.
Progress in annual development programme, import, export, remittance, domestic consumption and performance of corporate taxpayers are not satisfactory, they said.
The economic growth was anticipated at 7.2 per cent, import growth at 11 per cent and remittance inflows at 10 per cent for achieving the revenue earnings target.
According to the data of the difference government agencies, only 19.13 per cent of the ADP was implemented, import grew by 9.50 per cent, export by 6.15 per cent while remittance inflows dropped by 15.65 per cent in the July-November period of this fiscal year.
All the NBR wings — income tax, VAT and customs duty — failed to achieve their respective targets for the period because of sluggish economic activities in the country though the wings aggregately collected in the five months around 32 per cent of the total target set for the entire fiscal year, they said.
According to the NBR data, the customs wing collected Tk 20,189 crore, VAT Tk 24,948 crore while income tax collection stood at Tk 18,783 crore in the July-November period.
The collection target from customs duty, VAT and income tax were Tk 20,928 crore, Tk 27,052 crore and Tk 21,584 crore respectively.
The collection of customs duty grew by 18.33 per cent, that of VAT 16.23 per cent and income tax 14.96 per cent in the period, the data showed.
NBR officials, however, expressed their hope that they would achieve the full-year target as revenue collection usually got momentum in the second half of a fiscal year.
ADP implementation and tax payment by large companies will increase in the January-June period of the fiscal year, they said adding that the NBR also took different measures including strengthening enforcement and monitoring to boost revenue collection.
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