Revenue shortfall hits Tk 520b in first 5 months of FY 20

Anisul Islam Noor

21st January, 2020 11:22:16 printer

Revenue shortfall hits Tk 520b in first 5 months of FY 20

The National Board of Revenue (NBR) has collected Tk 837.05 billion in revenue in the first five months of the current fiscal—-falling short of the target by Tk 520 billion.

However, the revenue collection is 5 per cent higher than in the same period a year ago.

The government has set the revenue target at Tk 3,256 billion in the current FY 20 fiscal. As per the target, revenue collection in five months was expected to be Tk 1360 billion.

Talking with the Daily Sun, a senior finance ministry official, however, said revenue collection will increase at the end of the fiscal year.

NBR officials are hopeful that revenue collection will increase significantly after the completion of the installation of Electric Fiscal Devices (EFD) this month.

“As a result, VAT collection will increase manifold, it is expected that there will be an increase in revenue collection at the end of the year. But that is certainly not enough to meeting the annual target,” said the official.

Mentioning that the government has increased the revenue target by 40 per cent this year, the official said the target is ‘too ambitious to meet’.

Tax collection saw a Tk 600 billion shortfall last fiscal year against the revised target.  NBR mobilised Tk 2.22 trillion tax revenue in FY 2018-19 against its revised target for Tk 2.80 trillion. The original target was Tk 2.96 trillion.