Income tax collection faced an aggregate shortfall of Tk 26.51 billion against its target until November of the current fiscal year (FY) mainly due to sluggish trend in corporate tax collection from commercial banks, poor bank interest rates and downward trend of investment.
According to a provisional estimate, the National Board of Revenue (NBR) set Tk 209.82 billion target for income tax collection for 31 tax zones across the country. However, the taxmen could collect Tk 183.30 billion in July-November period against the target.
Although the collection is Tk 23.57 billion higher compared to the previous year's collection and the income tax department achieved 14.76 per cent growth, some 13 tax zones achieved the target while 19 tax zones missed it.
Large Taxpayers Unit (LTU) under the income tax wing faced the large shortfall during the period. It collected Tk 42.05 billion income tax against its target for Tk 53.18 billion for July-November period, according to official data.
The income tax wing received around Tk 19 billion, failing to meet its target Tk 27 billion as tax at source from bank interest rate from savings accounts and fixed deposit receipts (FDRs).
Continuous fall in bank interest rate and shifting of bank depositors to government savings tools resulted in Tk 8.58 billion shortfall in the first five months of the current FY, said a senior tax official.
Bank interest rate on saving schemes came down to 2.5 per cent on an average in recent times.
However, tax officials expect recovery of the shortfall as tax return submission is comparatively higher under the tax zone-1 that receives the tax at source from bank interest rates.
Official sources said the tax zone received some 7,000 new tax returns this year from the Dhaka south and north city corporation officials. Also, some other 4,000 individual taxpayers submitted applications seeking additional time for submission of their tax returns.
Tax zone-4 that collects tax from government officials, collected Tk 9.12 billion income tax against its target for Tk 10.36 billion.
The tax zone received a record 17,000 additional tax returns until November 30, 2017 from the government officials.
In the budget for current FY, the NBR introduced a provision under which government officials who draw monthly salary above Tk 16,000 must have to submit tax returns.
In a recent meeting, the tax authority decided to prepare a list of the government officials in different ministries who have taxable income but are yet to submit tax returns.
Officials expect that the income tax wing will be achieve its target for the current year as several efforts of the tax authority along with budgetary measures have already started showing its positive result.
doulot_akter@yahoo.com
