NBR projects ambitious revenue earning increase

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Doulot Akter Mala
The revenue board has prepared a five-year projection paper on revenue earning targeting an annual Tk 1330 billion by 2015.
The National Board of Revenue (NBR) has projected Tk 705.90 billion for the next fiscal estimating a 17 per cent growth.
The NBR aims to collect Tk 257.35 billion in import duty, Tk 242.83 as Value Added Tax (VAT) and Tk 200.05 from income tax for fiscal 2010-11.
Of the total revenue it will be 36.60 per cent tax from the import revenue while 34.40 per cent from VAT at local stage and 28.34 per cent from income tax.
In the projection paper, the revenue board has set revenue targets at Tk 819.12 billion for fiscal 2011-12, Tk 958.12 billion for 2012-13 and Tk 1126.57 billion for 2013-14.
The NBR has set the revenue targets after detailed study of the growth trend in the last five years.
NBR has noticed that tax collection growth rates were 10 per cent, 8.46 per cent, 27.45 per cent and 10.73 per cent respectively in 2005-06, 2006-07, 2007-08 and 2008-09.
The board will send the proposal to the finance ministry for its consent, which will be announced in the budget for 2010-11, said a senior revenue board official.
Finance division of the finance ministry had set a target of Tk 725.90 billion for 2010-11 fiscal targeting 19 per cent growth, but NBR in a board meeting has decided to slash the target after studying the trend of last few years, he said.
The NBR has prepared the projection paper as part of the sixth five-year plan of the government, the official said.
The government aims to meet domestic demands through internal revenue and cut its dependence on foreign aid, he said.
Raising tax revenue by Tk 720 billion within the next five years will not be an impossible task if the NBR keeps its focus on domestic tax and extension of tax-base, he added.
The board will gradually slash target of import revenue and concentrate on domestic tax collection, he added.
Import revenue contributed 50 per cent of the total revenue collection five years ago and now it has declined to 38 per cent.
As a signatory to World Trade Organisation (WTO) convention, the country has to reduce import duty as a part of trade liberalisation.
In the first seven months of the current fiscal, the revenue board achieved 16 per cent growth, but failed to reach its target due to poor import revenue collection.
The government has set target at Tk 610 billion worth of revenue collection for the current fiscal. Until January, the board realised Tk 311 billion revenue from import duty and domestic tax.