Tax revenue data mismatch

The 'revelation' that tax collection data are often cooked up by a section of taxmen to show 'achievements' has surely come as an embarrassment to the National Board of Revenue (NBR). More importantly, it has put to question the authenticity of the government's very fiscal management programme. The issue of tax revenue data doctoring surfaced when a large gap in the tax collection figures, maintained separately by the NBR and the office of Controller General of Accounts (CGA), was detected. According to the NBR figures, the tax collection in the last fiscal year (FY) was Tk. 1.85 trillion. But the CGA office data show the same at Tk. 1.71 trillion. The data compiled by the latter are considered more reliable for it uses the IBAS (integrated budgeting and accounting system) for data compilation work.

The deliberate doctoring of data has made the job of meeting the tax collection target for the current FY even more difficult. The target set by the NBR is 35 per cent higher than the amount collected (Tk. 1.85 trillion) last fiscal. But if the CAG's collection data is taken into account, the target becomes 45 per cent higher. The aggregate tax collection by all the NBR offices during the first half of the current fiscal was substantially below the target. Besides, the possibility of furnishing wrong information on tax collection during the first half of the current fiscal also cannot be dismissed.

The gap in tax collection data, maintained separately by the NBR and the CGA, according to a report published in this paper, is nothing new. Differences in data were detected in most years. The intentional doctoring of revenue collection of figures by showing the same 'chalan' (treasury receipt) again and again by different tax offices to demonstrate 'better performance' is thought to be the main reason for the NBR maintaining inflated tax collection data. Though aware of the mischief, the NBR in all these years did not take any initiative to correct the wrongs. The sloth, however, goes well with the failure of the revenue board to reform its tax machinery adequately, including full automation.

But the new chairman of the NBR has asked all the field offices of income tax, VAT and customs wings to compile their tax collection data for the last fiscal year afresh, all commissioners of taxes to collect relevant data, compare the same with the ones maintained by the CGA office and explain the reason/s for mismatch. On receipt of all the revised data, it would be easy for the board to know the actual reasons for compiling wrong data on tax collection and take corrective measures. There is no alternative to preparing reliable data on revenue generation for it forms the basis for budget preparation. If the tax collection data were wrong over the years, then there is a valid ground to question the authenticity of the government's budgetary figures concerning receipts and expenditures. Hopefully, with the latest corrective measures in place, the problem would not trouble the NBR and the Ministry of Finance in the coming years.