Economic downturn has not impacted the direct tax collection from large taxpayers in the first quarter of the current fiscal year (FY), 2024-25, according to the tax officials concerned.
The Large Taxpayers Unit (LTU), where all banks among other big payers, collected 12.14-per cent higher revenue from July to September than the same period in FY24.
However, the aggregate tax collection of the National Board of Revenue (NBR) declined by 6.07 per cent during the same period.
The officials said most of the large corporates have not been impacted severely in paying taxes.
Most of the banks, cellphone companies and tobacco firms are routinely paying taxes under the LTU, thanks to its strong monitoring and supervision.
Syed Mohidul Hasan, additional commissioner of taxes at LTU, said the unit has taken extra pecuniary measures to keep its revenue mobilisation flow uninterrupted to support the government's fund crunch.
"The new NBR chairman's leadership has also contributed to the growth during this period. He has directed us to take all possible measures to mobilise domestic revenue without creating obstacles to businesses."
The LTU has held one-to-one meetings with almost 100 large corporate taxpayers to avert any discontinuation in the payment of taxes, Mr Hasan told the FE.
Most large taxpayers are compliant and pay taxes regularly, except a few facing financial challenges following a changeover of power, he continued.
Additionally, September 15 is one of the four deadlines for submission of withholding tax returns.
A big chunk of revenue usually comes in September every year with the payment of advance taxes, according to Mr Hasan.
"We have also collected some outstanding taxes to the tune of Tk 100 million through bank attachments during this period," he mentioned.
Another tax official said consumption of tobacco, and the use of mobile phone networks and mobile financial services also surged, thereby contributing to higher taxes in this unit.
The LTU has collected Tk 63.01 billion in the first three months of FY25 reviving its position from negative growth (11.19 per cent) in July.
The unit, which contributes nearly one-third of the direct taxes alone, has intensified efforts through intensive monitoring.
Officials, however, said the growth could have been much higher had six private commercial banks not been in a fragile financial state.
As per law, the LTU collects advance taxes from both individuals and corporates every quarter.
Md Humayun Kabir, former president of the Institute of Chartered Accountants of Bangladesh, says advance tax is a well-practised tax measure worldwide, but collection of tax at source in an arbitrary approach without the refund system of excess paid taxes adversely impacts businesses.
Minimum tax on the import of goods often exceeds payable taxes and profit margin of businesses, as it appears as a burden on businesses, he adds.
The major collection of the unit under review is source taxes.
In FY23, source-tax collection jumped to Tk 101.53 billion, nearly 45 per cent of its total collection, from Tk 85.54 billion in the previous year.
According to an LTU handbook, some 1,313 entities pay taxes under the unit.
The taxpayers include 65 banks, 48 general insurers, 36 life insurers, 81 merchant banks, 31 leasing and investment firms, six telecoms companies, seven food and beverage units, 14 garment companies, 22 textile, nine multiple products, 14 pharmaceuticals and 74 manufacturing.
Some 453 are corporate taxpayers, while 860 are individual taxpayers who are mainly sponsor directors of different companies.
Banks, which contribute nearly 36-per cent revenue to the LTU, paid Tk 93.01 billion in FY23, Tk 92.60 billion in FY22 and Tk 85.09 in FY21.
Mobile companies are the largest contributor next to the tobacco industry.
On the other hand, individual taxpayers under the unit contribute less than 2.0-per cent taxes it mobilises.
In FY23, large individual taxpayers submitted to the LTU Tk 4.03 billion, which was 1.55 per cent of its total revenue. They contributed Tk 3.81 billion, or 1.60 per cent, in FY22 and Tk 2.63 billion, or 1.10 per cent, in FY21.
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