Tax revenue collection surpasses target in July

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Doulot Akter Mala
The income tax department set an impressive trend of revenue collection at the outset of the current fiscal when it surpassed the target for the first month by Tk 50 million.
This has been possible because of government close monitoring of revenue leakage and plugging of loopholes from the very beginning of fiscal 2009-10 (July-June) to boost income tax collection, said a top income tax official.
Income tax department has collected tax worth Tk 6.56 billion against its target of Tk 6.06 billion.
The finance minister has directed the income tax department to gear up efforts for raising the number of income taxpayers to 1.0 million from exiting 0.67 million.
"We have directed all the field offices to net big taxpayers and increase number of actual taxpayers in fiscal 2009-2010," said the official.
Expressing his hope over significant rise in income tax collection, the official said: "Tax collection will increase manifold in the next month before the expiry of September 30 deadline for individual tax return filing," he said.
Usually, revenue board gets higher response in September-October period from the individual taxpayers that accounts for 40 per cent of the total income tax collection, he added.
"We hope the number of actual taxpayers will increase due to simultaneous internal and external survey for new taxpayers," he added.
Direct tax collection started to grow from early 2004-05 when the NBR started motivational programme to build awareness among the people on payment of income tax, he added.
Before 2004-05, contribution of income tax department was less than 18 per cent of the total revenue collection, but it jumped to 22 per cent in 2005-06, 24 per cent in 2006-07 and 26 per cent in 2007-08.
Massive crackdown on tax dodgers and motivational programme in the last few years helped the income tax department contribute more revenue to the national exchequer, the official said.
For fiscal 2009-2010, the government has targeted 27.15 per cent earning rise to Tk 165.60 billion for the income tax department.
Income tax department will be able to surpass import revenue collection if it could ensure taxpayer friendly environment in tax offices, he added.
"We have decided to observe national income tax day every year to build awareness among the people on payment of income tax," the official said.
Currently, NBR is taking preparation to observe the day on September 15 next.
The revenue board will honour top income taxpayers across the country as a part of the celebration, he added.
The board has formed a high-powered committee to make lists of top taxpayers in each divisions and district towns.