NBR directive to intensify collection of tax at source

Doulot Akter Mala | Published: August 08, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

The revenue board has instructed taxmen across the country to intensify focus on collection of tax at source, plug holes of revenue leakage and find out areas vulnerable to concealment.
The National Board of Revenue (NBR) gave the directives to all of its top tax officials in a bid to achieve revenue collection target this fiscal year.
The board held a meeting Thursday with all the commissioners of income tax, Value Added Tax (VAT) and customs wing.
Officials said the revenue board will frame a work-plan to achieve revenue collection target this FY following some Tk 40 billion shortfall in revenue collection in the last FY.
According to the provisional data, the NBR collected an aggregate amount of revenue of Tk 1.21 trillion against its target for Tk 1.25 trillion.
Two major wings of the NBR, income tax and VAT, failed to achieve its respective targets for last year due to political uncertainty that affected the business activity and economic mobility.Â Â
Field officials placed their strategies in the meeting, chaired by NBR chairman Ghulam Hussain, with their estimation of revenue collection from different sectors.
In FY 2013-14, the VAT wing faced Tk 31 billion shortfall while income tax Tk 7.63 billion.
Following the shortfall in the last FY, the NBR has incorporated some effective tax measures for boosting revenue collection in the current year.
Revenue board officials said the NBR projected Tk 5.0 billion revenue from the 'super taxpayers group'. The NBR increased the highest tax rate for individual taxpayers, having annual income above Tk 44,20,000, by 5.0 per cent in the budget.
The income tax wing projected an additional Tk 80 billion tax from the new measures including scaling up of registration taxes for land and flat.
Tax officials said the highest revenue would come from the land registration tax and from cigarette sectors this year.
Also revenue officials eye an improvement of financial health of the corporate taxpayers, mainly commercial banks, in 2014 calendar year. Banks contribute around 60 per cent of the corporate taxes collected by the Large Taxpayers Unit (LTU).
In the meeting, the NBR high-up instructed tax officials to expedite and intensify revenue collection from service sectors including sweetmeat shops and beauty parlours.
The NBR also directed customs officials to check duty evasion, under-invoicing and abuse of the bonded warehouse facility.