The government has lowered its revenue collection target by Tk 290 billion to Tk 3010 billion in its revised target for the 2020-21 fiscal year.
A senior official of the National Board of Revenue (NBR) on Monday told the Daily Sun that the government last week approved a revised VAT collection target of Tk 1010 billion, travel and income tax target of Tk 970 billion, import duty of Tk 940 billion and another Tk 90 billion in revenue from miscellaneous sources.At the beginning of the fiscal year 2020-21, the government set a target of revenue collection for NBR at Tk 3.30 trillion. Of the total amount, Tk 1288.73 billion was targeted from VAT, Tk 1054.75 billion from travel and income tax and Tk 956.52 billion from import duty.
The NBR collected Tk 1321.66 billion in revenue during the July-January period of the current fiscal year, which is only 40 per cent of the fiscal target.
Though the NBR missed its target, the revenue collection saw a growth 6.36 per cent in January FY21 compared to January FY20. In seven months from July to January, NBR achieved average 4.41 per cent growth in revenue collection.
The NBR chairman Abu Hena Md. Rahmatul Muneem in this regard said the revenue board officials are doing well in revenue collection. “The NBR has remained in the right trend so far. As a result, revenue collection saw growth despite the adverse impact of the coronavirus pandemic. We hope to reach the target as the economic activities are getting back to normalcy,” he said.
According to NBR, the total revenue collection deficit in FY20 was Tk820.91billion. In FY20, the revised target of NBR was Tk 3.05 trillion while the revenue board managed to fetch Tk 2.18 trillion.
Revenue collection usually increases at the end of the financial year, especially in May and June. The government has borrowed a record amount from selling of bonds and other saving tools to meet its regular expenses due to declining revenue collection.Dr Ahsan H Mansoor, executive director of PRI, a private research firm, told the Daily Sun that major reform is needed including digitalization of the total revenue system.
“Without reform, revenue collection would be a challenge even in the post-pandemic period,” he added.