NBR revenue growth in Q1 highest in a decade
Thursday, 4 October 2007
Shakhawat Hossain
The revenue growth of the national board of revenue (NBR) in the first quarter (Q1) of the current fiscal was around 15 per cent against the projected growth of 18 per cent, official sources said.
Though the revenue growth was less than the projected growth, it was for the first time in a decade that the NBR could achieve a double-digit revenue growth in the Q1 of any fiscal year. The revenue growth usually had been between 7.0 and 8.0 per cent in the Q1. However, the four-month-long opportunity offered to disclose undisclosed income lent an impetus to revenue generation this time.
Due to poor revenue generation, the government was forced to reduce the annual revenue target by Tk 36.76 billion in the last fiscal. The revised revenue target was fixed at Tk 374.79 billion from actual target of 410.55 billion.
Although the revenue board officials are hopeful about sustaining the revenue growth until the second quarter they are not that upbeat about the revenue growth prospect during the third quarter.
They pointed out that the growth of income tax collection, which was nearly 50 per cent of the projection in Q1, will not continue at the same pace after the current month.
The income tax growth is expected to remain strong following submission of tax identification number (TIN) returns throughout the current month.
The extended deadline for submission of TIN returns ends October 31.
The revenue generation growth through import duties and VAT departments, which were at 5.0 per cent and 12 per cent respectively, is expected to grow in the coming months because of the inflationary trend at home and higher commodity prices in the international market.
The revenue growth of the national board of revenue (NBR) in the first quarter (Q1) of the current fiscal was around 15 per cent against the projected growth of 18 per cent, official sources said.
Though the revenue growth was less than the projected growth, it was for the first time in a decade that the NBR could achieve a double-digit revenue growth in the Q1 of any fiscal year. The revenue growth usually had been between 7.0 and 8.0 per cent in the Q1. However, the four-month-long opportunity offered to disclose undisclosed income lent an impetus to revenue generation this time.
Due to poor revenue generation, the government was forced to reduce the annual revenue target by Tk 36.76 billion in the last fiscal. The revised revenue target was fixed at Tk 374.79 billion from actual target of 410.55 billion.
Although the revenue board officials are hopeful about sustaining the revenue growth until the second quarter they are not that upbeat about the revenue growth prospect during the third quarter.
They pointed out that the growth of income tax collection, which was nearly 50 per cent of the projection in Q1, will not continue at the same pace after the current month.
The income tax growth is expected to remain strong following submission of tax identification number (TIN) returns throughout the current month.
The extended deadline for submission of TIN returns ends October 31.
The revenue generation growth through import duties and VAT departments, which were at 5.0 per cent and 12 per cent respectively, is expected to grow in the coming months because of the inflationary trend at home and higher commodity prices in the international market.