The national exchequer incurred loss in respect of revenue receipts by Tk 50 billion against its revised target for the last fiscal year largely due to volatile political situation and resultant sluggish investment trend.
According to final data of tax-revenue collection, the National Board of Revenue (NBR) collected an aggregate amount of Tk 1.20 trillion in tax revenues in the FY 2013-14 against its revised target for Tk 1.25 trillion.
Initially, the government set Tk 1.36-trillion target for the NBR in the last budget. Later, it found the target ambitious in the context of economic downturn following confrontational politics.
Officials said two of the major tax-collection wings-income tax and value- added tax (VAT)--failed to achieve their respective targets. And it resulted in the shortfall in aggregate revenue collection.
However, tax-revenue collection posted 10 per cent growth last year over the corresponding period in FY 2012-13.
Taxmen in the income-tax wing collected Tk 429.15 billion, leaving a Tk 14.45-billion shortfall, while the VAT wing faced a Tk 31-billion deficit.
However, income tax posted 16 per cent growth while VAT 12 per cent over the previous corresponding period.
Only customs department has surpassed the target by earning Tk 332 billion last year.
A senior NBR official said the revenue board tried to minimise the collection shortfall by realising dues from different government entities and cell-phone operators.
He said the high-ups of the board could not realise the arrears for different complexities, despite intervention by the finance minister.
Officials said income-tax collection faced the shortfall due to decline in profits of corporate taxpayers, especially banks, in the 2013 calendar year. Collection of advance income tax (AIT), known as withholding tax, also faced shortfalls due to barren investment scenario. AIT contributes around 60 per cent to the total income-tax collection. Domestic VAT collection also suffered much due to political turmoil in the first half of the last FY. Shops remained almost shut during the period, causing significant losses in business.
In the FY 2012-13, the NBR faced some Tk 40 billion shortfall against its target of Tk 1.12 trillion.
Tax officials said the government usually fixes the tax-revenue target on the basis of GDP growth target. "Revenue collection will naturally fall short of target if the country fails to achieve its targeted GDP growth," they added.
In the just-concluded FY 2013-14, the country attained 6.1 per cent GDP growth, down from the targeted 7.2 per cent.
Revenue receipt falls by Tk 50b last fiscal
Doulot Akter Mala | Published: August 12, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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