Tax collection shortfall widens further in February
14 March 2016, Nirapad News: Shortfall in aggregate tax collection widened further in February, reaching Tk 135.11 billion during the first eight months of the current fiscal year (FY).
The shortfall has given rise to uncertainty over hitting the ambitious tax revenue target set for the FY 2015-16.
Until January, the shortfall in revenue collection was Tk 120 billion. It went up further in February due to sluggish economic activity and investment scenario.
The revenue board collected Tk 906.54 billion in taxes until February against the target of Tk 1.04 trillion.
The aggregate target for FY 2015-16 has been set at Tk 1.76 trillion. The NBR wanted to collect 59.06 per cent of the targeted amount in first eight months. But actual collection fell short of target by 12.97 per cent.
The National Board of Revenue (NBR) achieved 13.55 per cent growth in tax revenue collection during the July-February period over that of the corresponding period last year.
Tax revenue collection marked a poor growth, only 6.90 per cent, in February alone.
Officials said the average growth rate of revenue collection was 17.28 per cent in the last five years.
They said it is a challenge to reach the highest ever target amid poor implementation of Annual Development Programme (ADP) and also sluggish growth of import of revenue-generating products. All of the three wings of the NBR lagged behind their individual targets for the first eight months.
Income tax collection achieved a 9.47 per cent growth in July-February period over that of the corresponding period of the last fiscal. The wing collected Tk 278.78 billion in taxes against its target for 341.22 billion. The income tax collection fell short of target by 18.30 per cent.
The government set target to collect Tk 659.32 billion income tax and travel tax in FY 2015-16.
VAT collection at local stage also fell short of target by 14.58 per cent in July-February period. The VAT wing collected Tk 345.34 billion tax against its target for Tk 404.30 billion.
The Customs wing collected Tk 282.41 billion against its target for Tk 296.13 billion.