Originally posted in The New Nation on 25 August 2022
The overall revenue collection by the National Board of Revenue (NBR) during the first month (July) of the current fiscal year (2022-23) witnessed a healthy growth of around 16 per cent.
The revenue board collection fetched Tk 17,700 crore with the growth riding on customs duty against the monthly target of Tk 20,586 crore.
Soar in imports of commercial items and high prices of imported commodities have helped achieve the growth, NBR officials said.
Besides, many imported goods were not released at different ports to observe budgetary measures and the importers received customs clearance in July to release their items, which helped gain the 37.68 per cent growth in the customs wing, the officials said.
Analysing the sector-wise revenue collection scenario, it was found that Tk 6766.68 crore came from the customs duty with 37.68 per cent year-on-year growth, Tk 6021.62 crore came from the Value-Added Tax (VAT) with 10 per cent gowth and Tk 4732.15 crore came from the income tax and travel tax with zero per cent growth.
However, the revenue collection was over Tk 3000 crore lower than the monthly target.
Towfiqul Islam Khan, Senior Research Fellow of Centre for Policy Research (CPD), a private think-tank in the country, said, “The growth in revenue collection is mainly inflation driven.”
“Soar in commodities prices have facilitated to increase import duty and VAT collections. Rise in fuel oil price has also impacted on the revenue growth,” he said.”But the NBR is still reluctant to increase its efficiency in line with enhancing revenue. If it could this, it could be able to reduce tax rates for some commodities like fuel oil to give relief to the consumers,” he added.
NBR member Abdul Mannan Shikder said that positive changes have been evident into the mindset of the businessmen and individual taxpayers compared with the past as they are becoming compliant every now and then.
“Side by side, the field-level tax officials are strengthening their monitoring system. Considering all these things, there has been a positive growth in revenue collection,” he added.
The NBR has been giving due importance in checking tax evasion in the customs system side by side the businessmen are now much more compliant since they have taken VAT registration through online and thus paying VAT, he mentioned.
On the other hand, it has been possible to bring the maximum number of people under the tax net in case of direct tax.
Mannan said since tax at source is being deposited through electronic method, so, it has been playing a special role in revenue collection.