NBR expects to fetch Tk 8.0bn addl revenue from petroleum imports

The customs wing of the National Board of Revenue (NBR) expects to earn the major part of its revenue from petroleum imports in the current fiscal year (FY) in view of the upward revision of tariff structure for the same.

Official sources said the customs department has projected Tk 8.0 billion additional revenue earning from the import of the petroleum products in FY 2014-15. It is projected in a roadmap of revenue collection at import stage.

The customs wing of the NBR placed the roadmap with the government high-ups to show how the department plans to achieve its higher revenue-collection target.

On its part, the NBR has estimated some Tk 10.50 billion net additional taxes from import of different products due to increased taxes.

Of the amount, major portion of the taxes would come from petroleum products. The NBR increased import tariffs of different petroleum products, ranging from 20 to 25 per cent, this fiscal year.

The second-largest sector of revenue collection would be the mobile phones. The NBR expects some Tk 4.0 billion in taxes on imports of mobile handset. The NBR has imposed 15 percent VAT on imports of mobile-phone handset in addition to the existing 10 percent customs duty (CD) on the device.

However, the NBR estimates a loss of Tk 6.25 billion due to cuts in supplementary duty (SD) on some 770 products out of 1455 under the duty structure.

A senior customs official said, "Although the government is waiving customs duty every year to help local industries as well as integration of trade with the international market, consumers are not getting benefit of the measure."

Almost all the essential commodities are currently enjoying tax-benefit but, he observed, consumers are yet to see the impact of government's direct incentives to them.

Rice, pulses, onions and gram importers are enjoying full waiver of import taxes while edible oil and sugar importers are enjoying reduced rates.

He said, "Businesses maximize their profit with the waiver or reduction of taxes on products."

In the current FY, the government has set the lowest target of Tk 357.20 billion for customs department among the three wings of the NBR. It is 7.0 percent higher than that of the target for last FY. In 2013-14, the NBR collected Tk 331.54 billion in taxes from import sources that contributed some 24 per cent to the aggregate tax-revenue collection for the last year.