Corporate tax collection remains sluggish in the current fiscal year ostensibly for business loss of the big taxpayers mainly because of a disruptive environment.
The revenue authority could cover only 35 per cent of the target set for the first half of the current fiscal (2014-15).
Taxmen's upbeat expectation took a knock in such a circumstance. They had high hopes about a quantum jump in tax receipts on the back of the fiscal measures devised for the fiscal year (FY) 2014-15.
They collected Tk 58.90 billion in taxes from major corporate taxpayers in the first half, which accounts for only 35 per cent of aggregate target of the Large Taxpayers Unit (LTU) this fiscal, according to official count.
The LTU has the target of income-tax collection amounting to Tk 168 billion in the FY, envisaging a 32 percent growth over the previous mark.
In the current tax year, the government imposed new upfront taxes on interest incomes from government securities -- both treasury bonds and bills, tax on life insurance gains. Brought onto the tax net are also some left-out state-owned entities, like Bangladesh Telecommunications Regulatory Commission (BTRC).
Taxmen had expected these new areas would yield significant amounts of revenue under LTU.
This tax wing will have to collect Tk 110 billion in the next six months to make up for the shortfall and get to the goal set for the FY. Economists consulted over the situation holds little hope, though.
It may be difficult due to the "worsening political situation", said Dr Ahsan H Mansur, Executive Director of the Policy
Research Institute (PRI).
Meanwhile, trade, commerce, business, transportation, and even production, are currently being hampered for a prolonged blockade called by the BNP-led main opposition coalition following a standoff with the government over the January 5, 2014 general election they had boycotted.
He said the worsening economic outlook and uncertainty over the political front may leave an adverse impact on revenue collection.
"According to an initial estimation, aggregate shortfall in NBR's tax-revenue collection may stand at Tk 150 billion at the yearend," the economic analyst said.
The government has set the target of collecting Tk 1.49 trillion for the NBR in FY 2014-15.
Dr Mansur said shortfall in tax-revenue receipts is 'inevitable' given the political impasse.
Tax officials also see a challenging situation for the last half of the current FY.
They said political unrest and continued blockades may take a toll on the revenue collection by the NBR as businesses are the worst sufferers from the turmoil.
Now, tax officials pin their hope on an impressive growth of operating profit of commercial banks in the calendar year 2014. They think this redeeming feature may help the LTU minimise the shortfall.Mohammad Masoom, Deputy Managing Director of Mercantile Bank Ltd, fear non-economic factors may leave an adverse impact on net profit of banks.
Good governance in the banking industry is needed to handle problems relating to non-performing loans, idle liquidity etc, he said.
"Banks need to concentrate on consolidated growth amid political doldrums taking toll on the economy," he added in his views about the correctives.
Mobile-phone company Grameenphone remain largest corporate taxpayer under LTU.
In July-December period, Grameenphone paid Tk 7.48 billion in corporate tax to the exchequer.
Standard Chartered Bank paid Tk 2.01 billion in the first half followed by Islami Bank Limited Tk 1.85 billion and British American Tobacco Tk 1.70 billion.
Time for submission of tax returns by some 50 corporate taxpayers' local manufacturing companies expired on 31 December.
Banks and financial institutions submit their annual tax return on 15 July. However, large companies pay advance tax quarterly on their earnings.
A senior official of the LTU said the half-yearly collection of corporate tax does not reflect the actual scenario as commercial banks would pay taxes in second half of the year.
Banks contribute around 63 per cent to the total corporate tax collection.
The corporate-tax wing depends on a handful of corporate taxpayers on achieving its target for income tax collection.
Tax collection in the second half would depend on economic activity in the January-July period of the current year, the official said.
The calendar year 2015 started with political unrest and uncertainty, posing a threat to overall business and import-export trade.
However, the income-tax wing achieved an 18 percent growth in H1 against the corresponding period last year, he said.
Aggregate target of income-tax collection has been set at Tk 565.80 billion in FY 2014-15.
Currently, LTU intensively monitors a total of 298 companies and nearly 1,000 individual taxpayers, mostly sponsor-directors of those companies.
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