Aggregate tax revenue collection faced some Tk 80 billion shortfall until March triggering uncertainty over achieving the target for current fiscal year (FY), according to a provisional figure of the Board of Revenue (NBR).
Officials said sluggish investment scenario and impact of political turmoil last year caused the shortfall in revenue collection.
Considering the unfavourable situation, the government has revised tax revenue collection target downward to Tk 1.25 trillion from the projected Tk 1.36 trillion for the current FY.
In the first three quarters, the Board collected an aggregate amount of Tk 787.33 billion against its target for Tk 867.01 billion. To achieve the target for current year, the tax authority will have to collect Tk 463 billion in the last quarter (April-June) period.
Tax officials said usually tax collection gains pace in the last end of every year due to the government's development work. Also, corporate tax collection increases in that period.
Time for tax return submission by large corporate taxpayers, including banks, ends on July 15. Taxmen usually collect the tax in advance from them by June 30, they said.
Taxmen see achieving the revised target also as a challenge amid several changes in tax measures in the middle of the year including cut in exporters' tax.
"We estimate a loss of significant amount of tax due to cut in tax at source on export earnings in the mid-year," said a senior NBR official.
The official, however, expressed optimism over achieving the target for income tax expecting normalcy in businesses and banking sector in the last quarter.
According to the provisional figure, the NBR collected Tk 255 billion income tax against target for Tk 306 billion until the third quarter.
The VAT wing collected Tk 309 billion against target for Tk 322 billion and customs department Tk 235 billion against Tk 238 billion.
The government expects highest revenue from VAT in the current year that faced a severe blow due to the political impasse.
VAT officials said smooth business activities are needed to increasing VAT collection as it directly depends on consumption of products and services.
They said nominal revision of VAT collection target, from Tk 510 billion to Tk 468 billion, will not help the wing achieve target as the original target was ambitious in the election year.
The government is set to fix Tk 1.49 trillion target for tax revenue collection for the next FY (2014-15) eyeing higher growth on income tax collection.
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