Tax collection exceeds target

Aggregate tax collection has finally overshot the target by Tk 12.38 billion in the just-concluded fiscal year (FY), largely for a yearend windfall in revenue receipt.       
The National Board of Revenue (NBR), buoyed by the success attained through a coordinated hard drive, revealed Wednesday that the tax-revenue receipt marked a 12.79 per cent growth over the corresponding period as per its provisional data.
The revenue board achieved the tax-collection target for FY 2014-15 after having missed the mark in the last three consecutive years.
All of the three wings of the revenue board -- income tax, VAT and customs -- have achieved their respective targets.
NBR chairman Md Nojibur Rahman disclosed the revenue-receipt data at a press briefing at the VAT online project office at the Institute of Diploma Engineers of Bangladesh (IDEB).
The tax authority has collected an aggregate amount of Tk 1.36 trillion against the revised target of Tk 1.35 trillion.
Direct tax wing, both income and travel taxes, has netted the highest chunk of Tk 493.93 billion. The figure marks a 13 per cent growth over the corresponding year.
Value Added Tax (VAT) Department collected Tk 486.38 billion from domestic sources in the just-past fiscal against its target for Tk 482.64 billion.
Customs Wing collected Tk 382.35 billion as import and export taxes, with 15.01 per cent growth.
The original target for FY 2014-15 was Tk 1.49 trillion. The government revised it downward following revision of other relevant macroeconomic data.
The NBR mobilised some Tk 182.24 billion in June alone -- and, finally, shot the annual target as the fiscal year came to a close with the end of the month on a pleasant note for the exchequer.
Responding to queries from newsmen, the NBR chairman said although there was doubt about getting to the tax- revenue target in different sections but taxmen made it with their all-out efforts.
"Good governance and hard work of field-level tax officials helped them achieve the target despite several challenges," he said.
He hopes the provisional figure will see an increase by July 15, after compiling final figures of VAT collection from field offices.
Responding to a query, the NBR chief said the board did not collect advance taxes from the corporate taxpayers to meet the target.
He said reshuffle in some vital positions of tax administration, motivation, exchange of views with the chamber bodies and government entities are among the major strategies applied by the NBR to achieve the target.
The NBR chair said new VAT law from July 01, 2016, border management for customs, and strengthening Pangaon port will help the board attain the 30 per cent growth in revenue collection in the current fiscal.
The government has fixed Tk 1.76-trillion target for the NBR for FY 2015-16, as it has set a substantially higher budgetary outlay of over Tk 2.95 trillion for the year.
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