NBR's focus on income tax pays dividend
Monday, 21 December 2009
Doulot Akter Mala
The collection of income tax revenue has marked a significant growth in the first five months of the current fiscal, while two other major revenue earning wings- Customs and Value Added Tax (VAT) lagged behind.
The National Board of Revenue (NBR) achieved 24 per cent growth in income tax collection between July-November period, while VAT and Customs departments' growth rates were 20 per cent and 5.0 per cent respectively during the same period.
"We see a positive trend in revenue collection, as the NBR has achieved 14 per cent growth until November compared to that of the corresponding period last year," said NBR Chairman Dr Nasir Uddin Ahmed.
"Revenue collection has started improving now. It will see further increase after setting up of two dedicated benches for resolving tax-related cases involving settlement of billions of taka revenue," he said.
Income tax department is performing well. It has achieved 24 per cent growth until now, he added.
Officials said the government's planned fiscal measures-giving more attention to increasing direct tax- contributed to higher growth in income tax collection.
The NBR has collected Tk 42.72 billion as income tax in the first five months of the current fiscal exceeding its target of Tk 37.93 billion.
Revenue from Customs achieved a poor 5.0 per cent growth with Tk 88.16 billion due to the decline in imputes and the slow increase in commodity prices in the international market.
Collection from VAT grew by 20 per cent until November. The department has collected Tk 76.49 billion against its targeted amount of Tk 63.68 billion.
Officials said the NBR needs 17 per cent growth to achieve its target of Tk 610 billion for the current fiscal.
Revenue board has collected Tk 213.09 billion until November with 14 per cent growth.
"We have to gear up the revenue collection drive as income tax collection might slow down in the second half of the current fiscal," said a senior NBR official.
Time for individual income tax and a majority of companies' tax submission date will expire by December. After expiry of the time, income tax collection might see a sluggish trend, he said.
Terming the revenue target 'ambitious', the official said it will be an uphill task for the revenue board to reach the target with 17 per cent growth.
"We are hopeful of achieving the target as global economy has started coming out of recession which will help import revenue grow," he said.
The government targeted 38 per cent revenue from import and 33 per cent from VAT and 27 per cent from income tax.
The collection of income tax revenue has marked a significant growth in the first five months of the current fiscal, while two other major revenue earning wings- Customs and Value Added Tax (VAT) lagged behind.
The National Board of Revenue (NBR) achieved 24 per cent growth in income tax collection between July-November period, while VAT and Customs departments' growth rates were 20 per cent and 5.0 per cent respectively during the same period.
"We see a positive trend in revenue collection, as the NBR has achieved 14 per cent growth until November compared to that of the corresponding period last year," said NBR Chairman Dr Nasir Uddin Ahmed.
"Revenue collection has started improving now. It will see further increase after setting up of two dedicated benches for resolving tax-related cases involving settlement of billions of taka revenue," he said.
Income tax department is performing well. It has achieved 24 per cent growth until now, he added.
Officials said the government's planned fiscal measures-giving more attention to increasing direct tax- contributed to higher growth in income tax collection.
The NBR has collected Tk 42.72 billion as income tax in the first five months of the current fiscal exceeding its target of Tk 37.93 billion.
Revenue from Customs achieved a poor 5.0 per cent growth with Tk 88.16 billion due to the decline in imputes and the slow increase in commodity prices in the international market.
Collection from VAT grew by 20 per cent until November. The department has collected Tk 76.49 billion against its targeted amount of Tk 63.68 billion.
Officials said the NBR needs 17 per cent growth to achieve its target of Tk 610 billion for the current fiscal.
Revenue board has collected Tk 213.09 billion until November with 14 per cent growth.
"We have to gear up the revenue collection drive as income tax collection might slow down in the second half of the current fiscal," said a senior NBR official.
Time for individual income tax and a majority of companies' tax submission date will expire by December. After expiry of the time, income tax collection might see a sluggish trend, he said.
Terming the revenue target 'ambitious', the official said it will be an uphill task for the revenue board to reach the target with 17 per cent growth.
"We are hopeful of achieving the target as global economy has started coming out of recession which will help import revenue grow," he said.
The government targeted 38 per cent revenue from import and 33 per cent from VAT and 27 per cent from income tax.