Value-added tax collection from large-scale companies witnessed a 9.17-per cent growth in the July-March period of the current fiscal year 2020-2021 despite dismal economic activities amid the Covid-19 outbreak in the country.
Large taxpayers’ unit (LTU-VAT) of the National Board of Revenue managed to collect Tk 36,210 crore in VAT from big companies in July-March of FY21, up Tk 3,040 crore on the same period of FY20.
In July-March of FY20, VAT collection by the LTU was Tk 33,169 crore.
Officials said that VAT collection grew, riding on a higher collection growth from some major sectors, including mobile telephone, pharmaceutical and tobacco, in the period.
Uses of mobile telephone services have increased significantly amid the Covid-19 outbreak as most of the people depended on mobile communications in the period for their usual communications and office work, they said.
Pharmaceutical products witnessed a boost based on a growth in export and domestic use amid the coronavirus outbreak, they added.
The performances of the other manufacturing and service sectors such as construction, bank and fast moving consumer goods were not satisfactory in the period.
According to data, VAT collection by the LTU, however, fell Tk 10,723 crore short of the Tk 46,933 crore target set for the July-March period.
The revenue board set the VAT collection target for the LTU at Tk 67,529 crore for FY21 against the collection of Tk 42,053 crore in FY20.
The government set a revised VAT collection target at Tk 1.10 lakh crore for the NBR for FY21.
Officials said that LTU revenue collection in VAT grew by 15.05 per cent alone in March with collection of Tk 4,915 crore.
The wing of the NBR has maintained a significant collection growth rate every month since July as the economic activities started gaining momentum after the government eased the restrictions imposed on March 29, 2020 to contain the spread of coronavirus infection.
Officials, however, expressed fears that the growth might slow down amid the fresh restrictions the government has been enforcing since April 5 to contain a fresh wave of the virus infection.
The fresh restrictions may take a heavy toll on economy if the coronavirus situation is not come under control and the restrictions becomes lengthy as it will make production and consumption of products and services slower, they said.
The LTU (VAT) may face a higher shortfall in achieving the revenue collection target for the year, they added.
At the beginning of the current fiscal year, most of the large corporate taxpayers projected a dismal business prospect and lower growth in VAT payment in FY21 due to the Covid‑19 fallout.
In response to an LTU’s query, they expressed their apprehension over the possible drop in sales and tax payment in FY21.
LTU’s contribution accounts for almost 56 per cent of the total VAT collection by the NBR.
Some 170 large companies, mainly from the banking, insurance, telecommunication, pharmaceutical, cement, ceramic, petroleum gas, luxury hotels, tobacco and beverage sectors, pay VAT under the unit.
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