Tax receipts fall Tk 49,501cr short of target in July-March

Staff Correspondent | Published: 23:23, Apr 27,2021

 
 

A file photo shows taxpayers queuing up to enter a tax office at Shegunbagicha in the capital, Dhaka, on November 30 to submit their income tax returns. The shortfall in tax collection by the National Board of Revenue widened to Tk 49,501 crore in the July-March period of the current fiscal year 2020-2021 due mainly to the Covid fallout on economic activities. — New Age photo

The shortfall in tax collection by the National Board of Revenue widened to Tk 49,501 crore in the July-March period of the current fiscal year 2020-2021 due mainly to the Covid fallout on economic activities.

The deficit in revenue collection was Tk 47,563 crore in the July-February period of FY21.

Tax officials managed to collect Tk 1,78,263 crore in July-March of FY21 against the collection target of Tk 2,27,764 crore set for the period, according to the provisional NBR data.

The collection in July-March is only 54 per cent of the original target set for the entire fiscal year at Tk 3.30 lakh crore.

The government, however, downsized the collection target by Tk 29,000 crore to Tk 3.01 lakh crore following dismal performance in revenue collection due to slowdown in economic activities, income loss of individuals and businesses and decline in demand amid the adverse impact of Covid outbreak.

Revenue collection, however, grew by 7.31 per cent in the nine months of FY21 compared with that in the same period of FY20.

In July-March of FY20, revenue collection was Tk 1,66,117 crore.

Tax officials will have to collect Tk 1,22,737 crore, which is around 41 per cent of the revised target, in the last three months of the fiscal year to achieve the revised target, according to the NBR data.

Officials said that it would be highly impossible to achieve even the revised target in the year as the second wave of the coronavirus infection has worsened the economic situation because of the ongoing restrictions on public movement and business activities.

The Covid restrictions have been enforced in the whole April and the government has decided to continue the restrictions till May 5, they said, adding that the restrictions might be extended if the virus situation did not come under control.

Although factories are open and shops have been opened beginning on April 24, businesses are experiencing a dismal outcome due to a slower demand, they said.

The implementation of the annual development programme also hit an 11-year low in July-March of the fiscal year as the government agencies managed to execute only 42 per cent of the revised ADP allocation.

Revenue collection usually gets a boost in the last quarter following an expedition in ADP implementation but this year the situation is different, the officials added.

According to the NBR data, although all three wings — customs duty, VAT and income tax — lagged behind in achieving their respective targets for the July-March period of FY21, the wings recorded growth year-on-year.

Deficit in VAT collection stood at Tk 21,96 crore, that in customs duty collection Tk 16,705 crore and that in income tax collection Tk 11,700 crore in July-March of FY21.

Customs duty collection, however, grew by 12.15 per cent while income tax and VAT collection grew by 5.59 per cent and 5.13 per cent respectively, the data showed.

Officials said that the NBR experienced a-22.65 per cent growth in the overall revenue collection in March of FY21 thanks to a very poor performance in the same month of FY20.

Revenue collection in March 2021 stood at Tk 25,186 crore against Tk 20,534 crore collection in the same month of 2020, they said.

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

 

Advertisement

images