NBR surpasses upgraded income tax revenue target
Tuesday, 3 July 2007
Doulot Akter Mala
The National Board of Revenue (NBR), in the backdrop of intensive drive against tax evasion, has surpassed the enhanced target for income collection by Tk 1.6 billion in the just concluded fiscal year (2006-07).
The board collected income tax worth Tk 90.84 billion in the fiscal 2006-07, according to preliminary data on tax collection.
The amount of tax collected is expected to rise further on receipt of full statistics from the divisional offices, sources said.
The government increased the income tax collection target by Tk 4.24 billion (424 crore) for the last fiscal.
The income tax collection target in the original budget for last fiscal was set at Tk 85 billion (8500 crore) but it was later revised to Tk 89.24 billion.
The authorities made the upward adjustment in income tax collection to compensate for the lacklustre revenue growth in other areas under NBR, sources said.
At the fag end of the past fiscal, the government initiated a number of steps to increase income tax collection, including the opportunity to legalise untaxed money through payment of 5.0 per cent penalty in addition to normal tax rate.
Sources said, following NBR's crackdown on tax evaders, the tax revenue collection substantially increased in the immediate past fiscal, and the trend is expected to persist during the current financial year.
Besides, the board's ongoing survey on existing business outlets and organisations for raising number of taxpayers also contributed to the generation of awareness among the people about the payment of tax, sources said.
The income tax department had surpassed the original target set in the national budget every year but the government, for the first time, has made such an upward adjustment of the target, they added.
The government has set an income tax collection target of about Tk 108.38 billion (10838 crore) for the fiscal 2007-08, up by 21.45 per cent than that of the revised target of the last fiscal.
The revised tax revenue target, however, had been set at Tk 374.79 billion for the immediate past fiscal. The tax revenue target was set at Tk. 410.55 billion in the original budget for the fiscal 2006-07.
In the fiscal 2006-07, the customs department's collection was Tk 156.30 billion (15630 crore) as against the revised target Tk 157.62 billion.
Despite substantial reduction in the duty rates on essential commodities and the Bangladesh Petroleum Corporation's failure to pay duties worth Tk. 11 billion the customs department's shortfall in revenue earning was only Tk. 1.0 billion in the last fiscal.
The collection of value added tax (VAT) fell short of target by Tk 1.90 billion in the fiscal 2006-07, according to the NBR's preliminary statistics.
The collection of income tax, customs department and VAT is expected to rise further after receiving full statistics from the divisional offices, official sources said.
The government has set the total tax revenue collection target of Tk 438.50 billion for the fiscal 2007-08, representing a 17 per cent increase over that of the revised target of Tk 374.79 billion in the fiscal 2006-07.
The National Board of Revenue (NBR), in the backdrop of intensive drive against tax evasion, has surpassed the enhanced target for income collection by Tk 1.6 billion in the just concluded fiscal year (2006-07).
The board collected income tax worth Tk 90.84 billion in the fiscal 2006-07, according to preliminary data on tax collection.
The amount of tax collected is expected to rise further on receipt of full statistics from the divisional offices, sources said.
The government increased the income tax collection target by Tk 4.24 billion (424 crore) for the last fiscal.
The income tax collection target in the original budget for last fiscal was set at Tk 85 billion (8500 crore) but it was later revised to Tk 89.24 billion.
The authorities made the upward adjustment in income tax collection to compensate for the lacklustre revenue growth in other areas under NBR, sources said.
At the fag end of the past fiscal, the government initiated a number of steps to increase income tax collection, including the opportunity to legalise untaxed money through payment of 5.0 per cent penalty in addition to normal tax rate.
Sources said, following NBR's crackdown on tax evaders, the tax revenue collection substantially increased in the immediate past fiscal, and the trend is expected to persist during the current financial year.
Besides, the board's ongoing survey on existing business outlets and organisations for raising number of taxpayers also contributed to the generation of awareness among the people about the payment of tax, sources said.
The income tax department had surpassed the original target set in the national budget every year but the government, for the first time, has made such an upward adjustment of the target, they added.
The government has set an income tax collection target of about Tk 108.38 billion (10838 crore) for the fiscal 2007-08, up by 21.45 per cent than that of the revised target of the last fiscal.
The revised tax revenue target, however, had been set at Tk 374.79 billion for the immediate past fiscal. The tax revenue target was set at Tk. 410.55 billion in the original budget for the fiscal 2006-07.
In the fiscal 2006-07, the customs department's collection was Tk 156.30 billion (15630 crore) as against the revised target Tk 157.62 billion.
Despite substantial reduction in the duty rates on essential commodities and the Bangladesh Petroleum Corporation's failure to pay duties worth Tk. 11 billion the customs department's shortfall in revenue earning was only Tk. 1.0 billion in the last fiscal.
The collection of value added tax (VAT) fell short of target by Tk 1.90 billion in the fiscal 2006-07, according to the NBR's preliminary statistics.
The collection of income tax, customs department and VAT is expected to rise further after receiving full statistics from the divisional offices, official sources said.
The government has set the total tax revenue collection target of Tk 438.50 billion for the fiscal 2007-08, representing a 17 per cent increase over that of the revised target of Tk 374.79 billion in the fiscal 2006-07.