Welcome to Business Outlook
Related Articles
Revenue collection by the National Board of Revenue grew by 17.21 per cent in the just concluded fiscal year 2020-2021 despite Covid fallout on the economy.
Tax officials managed to collect Tk 2.56 lakh crore in the July-June period of FY21 against the collection of Tk 2,18,406 crore in the previous fiscal year (2019-2020).
Revenue collection by the NBR, however, fell short by Tk 45,000 crore of the revised target set at Tk 3.01 lakh crore for the year, according to the NBR provisional data.
The original revenue collection target for FY21 was Tk 3.30 lakh crore that was revised downward following a sluggish trend of tax collection due to negative impact of Covid pandemic on the economy.
Officials of the NBR said that revenue collection might reach Tk 2.60 lakh crore after the final calculation by the end of July.
They said that revenue collection usually increased in the final calculation on accumulation of data on VAT collection and withholding tax after the 15th day of each month.
They said that it was a good sign that revenue collection bounced back after negative growth by 2.26 per cent in FY20.
The collection would be higher if the country had not been affected by the second wave of the coronavirus infection, they added.
Revenue collection increased due mainly to increased contribution from large taxpayers, scope for untaxed money legalisation and strong monitoring of field offices on withholding tax collection.
Banks made significant operating profits that helped the large taxpayers unit (LTU) under income tax wing to achieve the target.
The NBR also got higher revenue in VAT from tobacco, cement, pharmaceutical and mobile phone companies in the past fiscal year.
Revenue collection grew by 13.16 per cent on average in the last five fiscal years.
According to the NBR provisional data, the highest Tk 94,000 crore was collected in value-added tax while income tax and customs duty collection stood at Tk 85,000 crore and Tk 77,000 crore respectively in the past fiscal year.
The collection target was Tk 1.10 lakh crore in VAT, Tk 97,000 crore in income tax and Tk 94,000 crore in customs duty respectively for FY21.
