IMF team to assess NBR's technical assistance needs

A mission of the International Monetary Fund (IMF) is expected to meet the revenue authority on Monday next (July 18) to discuss pros and cons of the country's need for technical assistance on capacity development in tax- revenue mobilisation.
The points of discussion also include existing money-whitening scheme, its progress, revenue impact of tax exemptions, tax authorities’ efforts to digitise and automate the tax administration and its services.
A mission of the Washington-based lender is scheduled to visit Bangladesh on July 17-21.
The meeting with the National Board of Revenue (NBR) would be a part of its assessment on recent economic and financial developments in Bangladesh.

NBR officials, however, said the upcoming visit of IMF team may not be linked to the recent development of MoF on seeking credit support for Bangladesh.
Recently, the Ministry of Finance opened a negotiation to seek a loan of $4.5 billion to IMF in a bid to narrow its budget deficit and level up the foreign currency reserves.
Such initiative has been taken for potential budgetary credit support to finance the deficit of the total Tk 6.78-trillion budget for fiscal year 2022-23 (FY '23).
In April 2012, the IMF last confirmed $987 million worth of budget support, titled Extended Credit Facility (ECF).
Sources concerned said the visiting mission would also meet with central bank, MoF and other officials, businesses civil society, think tanks to know about country's recent economic and financial policies and its impact on economy.
A senior revenue board official said challenges on tax collection for current financial year, its way outs and performance of just concluded fiscal year would be discussed in the upcoming meeting.
NBR's strategies on achieving the current FY's target, Tk 3.70 trillion, for FY 23, would be discussed in the meeting.
Impacts of tax exemptions on tax revenue collection and its trends are in the points of discussion with the IMF, he said.
Reform initiatives of NBR to boost up direct tax collection and strengthen customs department is also in the point of discussion.
The mission would follow-up two past Fiscal Affairs Department's Technical Assistance (FAD TA), of which Managing for Improved Revenue Collection was taken in 2020 and Modernising Revenue Administration in 2019.
NBR officials said the NBR is yet to have any such project to where financial assistance of IMF would be needed right now.
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