Published in The Financial Express on Thursday, 4 January 2018
Revenue collection grows 14.28pc in five years
Revenue earnings have increased at an average rate of 14.28 per cent over the last five years that has ultimately boosted the government’s capacity to finance priority projects with own funds.
Revenue collection soared to Tk 1.85 trillion in fiscal year 2016-17 (FY17) from Tk 1.09 trillion in 2012-13 (FY13), according to the National Board of Revenue (NBR).
In the first five months (July-November) of the current fiscal year (2017-18), the NBR collected Tk revenue worth Tk 753.08 billion.
According to the data of NBRas presented by BSS, revenue earnings stood at Tk 1.21 trillion in FY14, up by 10.69 per cent from the previous fiscal year (FY13).
In the fiscal year 2014-15, revenue earnings stood at Tk 1.36 trillion, posting a 12.32 per cent growth and in the fiscal year 2015-16, the growth was 14.60 per cent as the NBR earned Tk 1.56 trillion. There was a big leap in fiscal year 2016-17 as the NBR mobilised Tk 1.85 trillion positing a growth of 18 per cent.
The contribution of Value Added Tax (VAT) was the highest 36.07 per cent to the robust growth in revenue earnings, income tax contributed 35.17 per cent and duty at import-export level 28.76 per cent.
In FY13, the total number of electronic Tax Identification Number (e-TIN) holders was only 1.2 million which has now increased to 3.27 million.
“The quick rise in the number of taxpayers reflects that citizens are now becoming conscious in paying tax and their confidence in NBR is increasing. People are taking e-TIN at their own initiatives,” said Nojibur Rahman.
Research director of Centre for Policy Dialogue (CPD) Khander Golam Moazzam said changes have taken place in the policy of NBR and its tax fair motivated people to pay tax.
Online e-TIN and VAT registration were excellent initiatives that helped boost revenue collection, he added.