Revenue income not decreased, says Kamal

Staff Correspondent | Published: 23:43, Feb 13,2020

 
 

Finance minister AHM Mustafa Kamal on Thursday said that the revenue income did not decrease as the National Board of Revenue so far in this fiscal year had collected Tk 12,000 crore more than what it had received in the same period of the last fiscal year.

He, however, admitted that the revenue generation was lower than the target, which, according to him, was ambitious.

That was why achievement by the NBR was a bit lower, the finance minister said as he was answering a question over the increase in the revenue shortfall after meetings of the cabinet committee on economic affairs at the secretariat.

He criticised reporters for their way of calculating revenue generation.

He said that the way the reporters calculated the revenue collection was not practical.

According to the NBR provisional data, shortfall in revenue collection widened to Tk 39,542 crore in July-January of the current FY 2019-2020.

Tax officials managed to collect Tk 1,24,527 crore or 76 per cent of the target for July-January when the collection target was Tk 1,64,069 crore, the data showed.

Mustafa Kamal in the budget set the NBR revenue collection target at Tk 3,25,600 crore, 16.26 per cent higher than the revised collection target (Tk 2,80,063 crore) for the last FY 2018-2019.

The actual growth target has skyrocketed to 45.43 per cent compared with the actual revenue collection as the NBR had managed to collect only Tk 2,23,892 crore in FY19.

The average revenue collection growth in the last five years is 13.16 per cent.

Revenue collection grew by only 6.72 per cent or Tk 7,836 crore in July-January of the current fiscal year compared with that in the same period of last fiscal year.

On the draft bill seeking amendments to the bank company act 1991 by the Bangladesh Bank, the finance minister said that he did not go through it.

He, however, said the proposals that included appointment of directors, managing directors and deputy managing directors of the private banks would be given with the approval of a board under the BB were fine.

If implemented, it will be beneficial for the sector, he said, adding that the style was also followed for the public sector banks.

Mustafa Kamal said that they had to move towards to good work gradually.

He said the proposals for amendments would be placed before the cabinet soon.

It is up to the cabinet to accept the proposals, he added.

In the draft bill, the BB has opposed issuing trade licences and registration of cars and properties to wilful loan defaulters.

The wilful defaulters should also be barred from traveling abroad in business class and their identities to be made public, says the draft amendment bill.

The BB also wants the ministries and the divisions to debar wilful defaulters from attending state functions or getting state honours.

It has defined wilful defaulters as the borrowers who do not maintain repayment schedules despite their financial solvency.

Besides, borrowers indulging in fraudulence to obtain loans, changing the purposes of loan use and transferring mortgages without informing the lending banks are also called wilful defaulters.

In the draft bill, the BB wants to publish the names of wilful defaulters with their photos on web sites and in newspapers.

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