Domestic revenue mobilisation in Bangladesh marked a significant shortfall by 25 per cent or Tk 577.24 billion in the first half of this fiscal year, prompting suggestion for recasting the NBR.
Such big deficit would create a serious pressure on the country's macroeconomic front, economists say and they see it as a "matter of serious concern".
Even, the domestic-revenue mobilisation in H1 was lower than that of the same period in the previous fiscal year.
Distinguished fellow of the Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman airs concern over such plummeting revenue- collection growth despite having enormous possibilities in place across the economy.
The economist finds a "four-tier loophole" in the country's tax-revenue-mobilisation process that deprives the public exchequer of receivable revenues.
"People are not submitting tax returns despite having TIN, government not receiving taxes that taxpayers are paying, NBR collecting taxes only from existing taxpayers without widening the tax net, and people not paying taxes as per their income," he says.
The tax-revenue collection could have grown higher as high inflation generates more revenues, he argues to disapprove of such low revenue receipts.
"It's true the tax collection was disrupted in July-August-September period but it's not the main cause of this sluggish growth," he told The Financial Express Wednesday.
He suggests focusing recasting the NBR and direct-tax mobilisation through proper management.
"We have no surplus and funding our annual development programme with debts," he wonders.
According to NBR data, the tax-revenue-collection growth was in the negative trajectory in each of the months in the current financial year so far.
Provisional data show, the NBR mobilised revenue worth Tk 1.56 trillion against its target of Tk 2.14 trillion during the period.
Collection of income tax, customs duty and VAT all lagged behind their respective targets by 31.43 per cent, 20.78 per cent and 27.70 per cent.
Also, the NBR collected lower VAT by 5.45 per cent in the first half of the FY than that of the same period in the previous year.
The income-tax wing of the revenue board collected Tk 521.62 billion in taxes followed by VAT Tk 551.77 billion and customs duty Tk 490.80 billion.
Targets for the July-December period were Tk 760.67 billion for income tax, Tk 763.17 billion for VAT and Tk 619.52 billion for customs wing.
In the current FY, the government has the target to collect a total of Tk 4.80 trillion worth of revenue on account of income tax, VAT and customs duty.
Of the target, the NBR has to collect Tk 1.77 trillion each as income tax and VAT and Tk 1.24 trillion as import-export taxes.
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