Aggregate tax collection target revised downward

Doulot Akter Mala | Published: May 01, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The aggregate tax revenue collection target has been revised downward to Tk 1.35 trillion for the current fiscal year, giving emphasis to the collection of direct taxes in the last quarter (April-June).
The government was forced to reduce the aggregate tax collection target by Tk 140 billion following a cut in the Annual Development Programme (ADP), sluggish economic activity and investment scenario, officials said.
According to an initial projection of the NBR, the revised target for income tax collection has been set at Tk 513 billion while Value Added Tax (VAT) Tk 510 billion and import taxes Tk 322 billion.
The revised allocation of three wings of NBR will be placed for the NBR chairman shortly for his approval.
Original target for NBR was Tk 1.49 trillion for FY 2015-16. Income tax collection target was Tk 575 billion, VAT Tk 565 billion and import duties Tk 357 billion.
In its latest meeting, the fiscal coordination council, chaired by the finance minister, has fixed revenue target for NBR at Tk 1.76 trillion for the upcoming FY.
Officials and experts, however, expressed surprise over the substantial hike of the revenue collection budget of NBR which may impose heavy tax-burden in the budget for FY 2015-16.
Earlier, the Centre for Policy Dialogue (CPD) has estimated Tk 250 billion shortfall in revenue collection in the current FY.
Until March, the income tax and VAT wing faced shortfall to the tune of Tk 23 billion and Tk 30 billion respectively against its target.
In an internal analysis, the revenue board reviewed previous two years' revenue collection growth to estimate an achievable target for FY 2014-15.
The taxmen also estimated the maximum aggregate tax-revenue collection at Tk 1.35 trillion against the target of Tk 1.49 trillion.
The government has fixed the tax-revenue collection target expecting 7.3 per cent GDP growth, import growth of around 15 per cent, and improved investment scenario.
doulot_akter@yahoo.com