NBR faces uphill task in achieving VAT collection target
At the current rate, it’ll miss its revenue collection target
Publish- April 21, 2021, 12:28 PM
Fahad Ferdous - UNB Staff Writer
With just over 41% VAT collection target met in the first seven months of this fiscal year, the National Board of Revenue (NBR) is mounting pressure on its field offices to boost the collection to shore up revenues amid the challenges posed by the pandemic.
It has asked the offices to attain the target keeping the present situation in mind and put emphasis on establishing intensive communication with the big companies.
In the 2020-21 fiscal budget, the total revenue collection from VAT wing was fixed at Tk 1,277.47 billion. But until January this year, the collection has been Tk 530.81 billion, which is only 41.55%.
No Smooth Sailing
The VAT collection target from the import level was Tk 455.54 billion. But till January of this year, the NBR has been able to collect Tk 196.59 billion. In January, the collection was Tk 29.52 billion.
In the first seven months of the last fiscal, the collection was Tk 178.14 billion while the collection in the month of January 2020 was Tk 26.76 billion.
It means the growth on a month-to-month basis is 10.32% while it is 10.35% considering the collection of the first seven months of the two fiscals.
On the other hand, the target for VAT collection from the local level was Tk 821.92 billion. But till January of this year, the NBR collected Tk 334.22 billion where in the month of January the amount was Tk 55.66 billion.
The NBR also asked its officials to take necessary precautionary and safety measures for protecting themselves from coronavirus while discharging their duties. The respective commissioners will monitor the matters in the field level offices.
Besides, the NBR official said that special attention needs to be given on collecting advance VAT and outstanding revenues from various business entities.
According to an official document, at the end of the 7th 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.
The total revenue collection target for the 2020-21 fiscal is Tk 3,780 billion where the NBR will contribute Tk 3,300 billion. The revenue from non-NBR sources was estimated at Tk 150 billion, while non-tax revenue at Tk 330 billion.
Of the grand amount for the NBR, Tk 1,039.45 billion will come from income, profit and capital tax, while Tk 1,277.47 billion will be contributed by VAT, supplementary tax will provide Tk 578.15 billion, Tk 378.07 billion will come from import duty, Tk 0.55 billion from export duty, Tk 36.86 billion from the excise duty and Tk 15.30 billion as other taxes.