Target set to be 34pc higher than revised one for next fiscal

The government is set to fix for the upcoming fiscal year a tax revenue target that will be respectively 19 per cent and 34 per cent higher than those of original and revised targets for the current fiscal (2016-17).   
It expects a substantial boost in Value Added Tax (VAT) collection with the implementation of the new VAT and SD law from July 01next.
The tax collection target for the National Board of Revenue (NBR) is likely to be set at Tk 2.48 trillion for the FY 2017-18.
The government is set to fix the highest target for VAT, followed by income tax and customs duty in the upcoming FY.
The targets will be known when Finance minister AMA Muhith unveils the next national budget before Jatiya Sangsad on June 01, 2017.
VAT collection target might be set at Tk 878.87 billion for the FY 2017-18 while the original target in the budget for current fiscal was Tk 727.64 billion.
Officials said the government has set a target to collect at least 40 per cent of total tax revenue from VAT. The new VAT and SD law-2012 would be implemented under the digitized VAT system and the NBR expects to cut revenue dodging to a great extent.
Recently, the finance minister backtracked from his move to fix a comfortable rate for VAT and decided to stick to a 15 per cent uniform VAT rate.  
Income tax wing might have to collect Tk 868.67 billion in the upcoming FY. The original target for income tax collection in the outgoing fiscal was Tk 719.40 billion.
Tax revenue collection target for customs wing might be set at Tk 734.36 billion in the upcoming FY. In the FY 2016-17, the target for customs wing was fixed at Tk 556.70 billion.
Meanwhile, the government revised downward the tax collection target to Tk 1.85 trillion from the original target of Tk 2.03 trillion for the current fiscal year.
Officials said the field-level tax offices have been informed about the revised target recently.
They said every year the government sets the target for the NBR, expecting higher growth.
The normal revenue collection growth was 15-16 per cent in the last three years.
They said new tax measures and new VAT law may help the taxmen tap the potential of revenue collection.
    doulot_akter@yahoo.com