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Corporate tax collection rises by 15.37pc in FY20

Jasim Uddin | Published: 22:42, Jul 02,2020

 
 

Corporate income tax collection by the large taxpayers unit of the National Board of Revenue increased by 15.37 per cent in the just concluded fiscal year 2019-2020 due to growth in collection from the top 10 taxpayers, mainly banks, despite the adverse impacts of the coronavirus outbreak on the economy in the last quarter of the fiscal year.

Corporate tax collection stood at Tk 20,100 crore in FY20, up by Tk 2,678 crore compared to Tk 17,422 crore collected in FY19, according to the provisional data of the revenue board.

Tax collection from the 10 highest taxpayers under the LTU (income tax) also increased by 15.19 per cent to Tk 6,454 crore in FY20 against   Tk 5,603 crore in FY19 as eight of them paid higher amounts of taxes to the unit in FY20.

The country’s banking sector with six private commercial banks dominated the list of top-10 corporate taxpayers in the year while Grameenphone topped the list with tax payments of Tk 2,973 crore.

The largest mobile operator in FY19 paid Tk 2,407 crore in corporate tax.

Islami Bank Bangladesh became the third largest corporate taxpayer with payments of Tk 612 crore in FY20 against Tk 575 crore in FY19 after British American Tobacco Bangladesh Co Ltd.

Although BATBC remained second in the list, tax payment by the company declined by 15.38 per cent to Tk 710 crore in FY20 compared to Tk 839 crore paid in FY19.

The other seven top corporate taxpayers under the LTU are Standard Chartered Bank, BRAC Bank, Dutch-Bangla Bank Limited, American Life Insurance Co Ltd, Square Pharmaceuticals Ltd, National Bank and Southeast Bank.

Of the companies, tax payment by only National Bank declined to Tk 269 crore in FY20 from that of Tk 302 crore in FY19.

Tax payment by Standard Chartered Bank increased to Tk 461 crore in the year from Tk 457 crore in the previous year, BRAC Bank’s contribution increased to Tk 327 crore from Tk 297 crore, DBBL’s payment rose to Tk 292 crore from Tk 207 crore and Southeast Bank’s tax payment increased to Tk 260 crore in FY20 from Tk 167 crore in FY19.

American Life Insurance Co Ltd and Square Pharmaceuticals Ltd paid Tk 280 crore and Tk 270 crore respectively in corporate taxes in FY20 against their payments of Tk 151 crore and Tk 200 crore respectively in FY19.

Income tax officials said that corporate tax collection increased in the year as the incomes of some major taxpayers soared in the year despite the COVID-19 fallout in the last quarter (April-June).

Operating profit of many banks also increased in the period, they said.

They said that intensive monitoring, rigorous audit and motivational activities of the unit and compliance of the taxpayers also contributed to the growth.

There are around 281 companies under the LTU while some 706 individuals, mainly sponsor directors of banks and other financial institutions, pay taxes under the unit.

Among the companies, 50 are banks, 61 insurance companies, 33 investment leasing companies and 137 belong to other sectors, including pharmaceuticals, mobile operators, cement companies and manufacturing companies.

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