Doulot Akter Mala The National Board of Revenue (NBR) has identified three major risks concerning achievement of its tax collection target of the current fiscal year (FY), following changes made to a number of fiscal measures by the government, being forced by circumstances after the enactment of the Finance Bill for FY 2011-12. Those fiscal measures were earlier incorporated in the budget for FY 2011-12, to collect the projected amount of tax revenues. Tax officials said they fear a shortfall to the tune of Tk 25 billion on account of income tax alone in the current fiscal due to a number of negative factors in the economy including a massive fall in the prices of the listed stocks in the capital market. The government has set a target of Tk 918.70 billion for tax revenue collection for fiscal 2011-12. Tax officials said that it would be difficult to achieve this target under the changed circumstances. Overall revenue collection from customs, value added tax (VAT) and income tax collection might fall short of target by Tk 12 billion, an official said preferring anonymity. The NBR will lose Tk 8.0 billion alone from changes in tax-measures and fall in prices of the listed stocks in the share market, a top taxman told the FE. The board received only Tk 1.13 billion in taxes from brokerage house commission in the last five months until November and it would hardly be able to earn another amount of Tk 50.0 million from this source in the coming months. Last year, the income tax wing collected Tk 3.22 billion as tax on commission earnings alone from brokerage houses. "We estimated a big chunk of advance income tax (AIT) after starting the construction of the Padma bridge, but now it may not be possible this year to collect the AIT from there," he said. The NBR will also lose Tk 2.0 billion in tax revenue due to closure of Karnaphuly Fertiliser Company Limited (KAFCO) for some period, he added. Declining operating profits of banks are also a major concern about collection of income tax from this large revenue-earning sector, the official said. Reduction of tax in some areas of exports will also negatively impact income tax collection this year, he said. According to the available statistics, income tax collection achieved 25 per cent growth until November of the current fiscal year over that of the corresponding period last year. The NBR collected Tk 77.96 billion as income tax during July-November period of this fiscal compared to Tk 62.30 billion during the same period last one. The NBR exceeded its target Tk 76.24 billion for the July-November period, but in the coming days, the tax officials foresee a looming risk to income tax collection. The board has withdrawn a number of fiscal measures that were earlier taken under the budget through the passage of Finance Bill-2011 by parliament. It has given a raft of facilities for share market investors including reduction of brokerage house commission, re-introduction of tax-benefit for mutual funds, withdrawal of capital gains tax for foreign investors. The NBR has set income tax collection target at Tk 275.61 billion for FY 2011-12, estimating a higher growth, but the depressed state of condition of the country's stock market and changes in tax measures have tended to dash its hope about augmenting the flow of tax revenue collection. Tax officials said the government should expedite actions for expansion of tax department by removing roadblocks, in order to help taxmen put in additional efforts to chase large tax evaders and expand the tax net.
NBR sees 3 major risks inachieving revenue target
FE Team | Published: December 13, 2011 00:00:00 | Updated: February 01, 2018 00:00:00
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