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Only 39.26% of the total target has been met in the first seven months of the current fiscal
The National Board of Revenue (NBR) is widening its net and realizing outstanding taxes to meet the yearly revenue collection target of the Income Tax Wing.
For 2020-21 fiscal, the target of Income Tax Wing is to collect Tk1039.45 billion. But NBR data show that after January of this year, only Tk408.15 billion or 39.26% of the target was collected.
In January this year, the NBR has collected Tk65.63 billion while it was Tk61.88 billion in the same month of the previous year. The month-to-month basis growth is 6.06%.
Till January 2021, the NBR collected Tk408.15 billion. The amount was Tk383.27 billion in the corresponding period of last year with a 6.49% growth.
NBR sources said the board has directed the tax commissioners to bring all eligible persons and organizations under the tax net and take initiative to remove the phobia regarding hassle in tax payment.
It also asked to intensify the tax survey and activate the inactive TIN numbers as the submission of income tax returns have been made mandatory for every TIN (Taxpayer’s Identification Number) holder from this fiscal.
The Income Tax Wing has already issued directives to field offices in these regards.
Internal survey
As part of the internal survey, the field-level officials are collecting possible taxpayers’ information from city corporations, Rajuk, and other relevant authorities, and sub-registrar offices.
This is popularly called “secondary data” which refers to the information of the individuals that are already kept with any organization.
The NBR has also started to collect information of potential taxpayers at the upazila level through secondary data gathering, otherwise known as internal survey.
For example, a file of “X” company mentioned that it has 450 employees. The official concerned can ask for the names of the 450 employees and their TIN numbers
With such little move, the NBR can find out eligible taxpayers’ names and put them under the tax net, if they are not already under it.
“This is called internal survey,” a senior NBR official explained to UNB. The official said that at first, the NBR is taking information on the trade licences that have been issued from the city corporations and municipalities.
Later, TIN will be issued in their names to bring them under tax net and collect revenue from them.
Besides, he mentioned that NBR is collecting information of foreigners from Bangladesh Investment Development Authority (Bida), vehicles owners from the BRTA, land buying and selling information from the sub-registry offices, power distribution offices and service-oriented offices.
Information of flat and house owners are also being collected from the National Housing Authority, the NBR official said. All these efforts would help NBR identify eligible taxpayers who are still out of tax net.
“We hope that this will help us raise revenue collection,” he added.
NBR sources said the board officials generally collect information of potential taxpayers by a door-to-door survey. This is how they find out new taxpayers.
A senior official of the NBR said that the field officials have been asked to conduct their survey maintaining health safety rules.
According to an official document, at the end of the Seventh Five Year Plan, which ended on June 2020, the revenue-GDP ratio was to be 16.1% in 2019-20 fiscal after gradual improvement, but the achievement was estimated at 12.7% while it was 9.9% and 9.6% in 2018-19 and 2017-18 fiscals respectively.
Total revenue collection set at Tk3,780 billion
The total revenue collection for the budget for 2020-21 fiscal was set at Tk3,780 billion where the NBR will contribute Tk3,300 billion.
The revenue from non-NBR sources was estimated at Tk150 billion, while non-tax revenue at Tk330 billion.
Of the grand amount for the NBR, Tk1,039.45 billion will come from income, profit and capital tax, while Tk1,251.62 billion will be contributed by VAT.
Supplementary tax will provide Tk578.15 billion and Tk378.07 billion will come from import duty. Tk0.55 billion will come from export duty while Tk36.86 billion from excise duty and Tk15.30 billion as other taxes.
(DT)
