Loading...
The Financial Express

NBR to speed up VAT collection to meet target

| Updated: May 09, 2022 16:43:05


NBR to speed up VAT collection to meet target

The National Board of Revenue (NBR) has asked its field offices to expedite the Value Added Tax (VAT) collection as the collection from the pocket is only 56.15 per cent in the first eight months of the current fiscal.

In this connection, the revenue collecting authority asked for attaining the target of the revenue collection keeping the present condition in mind and to put emphasis on establishing intensive communication with the big companies.

The NBR data shows that total revenue collection from VAT wing fixed in the budget for 2021-22 fiscal was Tk 1.28 trillion whereas the collection till February 2022 is Tk 717.37 billion, which is only 56.15 per cent.

The target for VAT collection from import level was Tk 455.55 billion. But till February this year, NBR has been able to collect Tk 284.04 billion where in the month of February the collection was 40.62 billion.

The collection till February 2021 was Tk 227.09 billion while the collection in the month of February 2021 was Tk 30.50 billion.

It means the growth in month to month basis is 33.17 per cent while it is 25.07 per cent considering the collection of the first eight months of the two fiscals.

On the other hand, target for VAT collection from local level was Tk 821.93 billion. But till February of this year the NBR has been able to collect Tk 433.33 billion where in the month of February the collection was Tk 56.16 billion.

The collection till February 2021 was Tk 387.35 billion while the collection in the month of February 2021 was Tk 53.13 billion, says a report on UNB agency.

It shows that the growth in month to month basis is 5.71 per cent only while growth is 11.87 per cent considering the collection of the first eight months of the two fiscals.

A senior official of the NBR said that in the present situation of the world or the country during the pandemic is not very conducive for revenue collection with sizeable growth.

"We are all aware about the present situation, this might improves as the world and the country as well are coming out from the shadow of the pandemic situation gradually. Whatever it is, we have to step forward with necessary actions to attain the target,' he said.

He mentioned that good communications with large companies that usually give significant amount of VAT would be a better tool for enhanced revenue collections.

He said that officials would have to depend on the items like cigarettes, mobile, bank, Bkash, internet and medicine, which pay higher revenue to the national exchequer.

Besides, the NBR official said that special attention needs to be given on collecting advance VAT and outstanding revenues from various business entities.

The revenue target for the NBR for fiscal 2021-22 has been set at Tk 3.30 trillion.

Of the total target the VAT wing will contribute the lion share with Tk 1.28 trillion. The target for Income Tax and Tax on Profit has been set Tk 1.05 trillion.

The revenue collection from import duty will be Tk 378.07 billion, Tk 552.25 billion from Supplementary Duty, Tk 554.5 million from export duty, Tk 36.86 billion from Excise Duty, Tk 15.30 billion from travel tac while Tk 10.50 billion from other taxes and duties.

(All figures are approximated to two significant figures after the decimal point)

Share if you like