NBR eyes arrears, proceeds from settlement of cases to fill revenue collection gap

The National Board of Revenue (NBR) is expecting to fight successfully the current economic challenges by focusing more on collection of arrears, settlement of cases and intensified motoring on domestic revenue mobilisation.

Dr Moinul Khan, member of VAT implementation and IT wing of NBR, said the revenue collection gap could be minimised through settling litigations and intensifying monitoring.

He came up with the possible strategy to boost revenue collection at a press conference in the capital on Wednesday, amid concerns whether it would be possible to maintain the present higher VAT collection growth, 17 per cent so far.

Speaking at the event NBR organised ahead of VAT Day, to be celebrated on December 10 (Sunday next), NBR member customs policy and IT Masud Sadiq said it is natural that the revenue mobilisation depends of the country's business climate.

NBR Chairman Abu Hena Md Rahmatul Muneem presided over the programme, attended by senior VAT, income tax and customs officials.

The chairman urged the taxpayers to seek invoices after purchasing goods from shops to make sure that the VAT paid is properly transferred to the exchequer.

He said the NBR is going to observe the VAT Day to aware consumers about the issue.

He added that the NBR has outsourced Electronic Fiscal Devices (EFDs) to collect VAT properly from the retail and wholesale businesses.

Dr Moinul said the NBR has started piloting the EFDs in Dhaka and Chattogram and added that it would proceed further with under a grand scheme if the trial succeeds.

Around 10,000 EFDs have so far been installed under the pilot programme while 60,000 more is planned to be installed by June 30 next year and 0.3 million in next five years.

Dr Moinul said some of the sectors including tobacco and carbonated beverages have been contributing to the higher revenue collection, offsetting the losses incurred due to decline in imports of raw materials and other commodities in the manufacturing sector.

Dr Md Shahidul Islam, NBR member VAT audit and intelligence, said the VAT wing has geared up auditing and collection of outstanding revenue to face the economic challenges.

Responding to queries, Zakia Sultana, NBR member of VAT policy, said the NBR is preparing for taking over the automated VAT system soon from Vietnamese company FPT as their contract is scheduled to expire in March next year.

On the occasion of the VAT day, the NBR would publish special supplements in newspapers, arrange talk shows in televisions, organise seminars and honour top VAT payers for their contribution to the government exchequer on December 10, 2023.

The finance minister is expected to handover the awards to the highest VAT payers that day.

[email protected]