Taxmen hope to harness a higher amount of Tk 550 billion in revenue from large taxpayers this fiscal year by executing a strategic plan.
The strategic plan is evidently drawn amid anticipation of revenue shortfall in the fiscal year (FY) 2017-18 following last-minute changes in fiscal measures. And, officials said, it is focused on realising overdue arrears and tapping potential pockets of tax receipts.
The Value Added Tax (VAT) authorities expect to surpass the Tk 500 billion target set for the Large Taxpayers Unit (LTU) under the VAT wing of the National Board of Revenue (NBR) in the current fiscal.
They especially eye the highest amount of VAT collection from cigarette, petroleum gas and mobile-phone sectors.
In its strategic plan, the unit estimates Tk 439.88 billion worth of revenues from twelve top sectors, rebate adjustments, dealing with VAT from evasion cases and from other sources.
The target for the unit has been set at Tk 500 billion for FY 2017-18 against its collection of Tk 369.83 billion in FY 2016-17.
A senior official of the unit said the LTU is optimistic about being able to surpass the target through resolving cases and realising Tk 130 billion stuck-up revenue lying with Petrobangla.
The unit will focus on capacity building of LTU officials and optimum use of ICT, intensify Alternative Dispute Resolution (ADR), pay sudden visit to business units holding revenue potential and a ensure taxpayer-friendly environment.
In the revenue blueprint, the LTU estimated Tk 197.73 billion in revenue in the current year from cigarette sector with a 14 per cent growth as the health-hazardous item is the largest revenue earner for the government exchequer.
Last year, the LTU received Tk 173.44 billion from this sector of tobacco products.
Petroleum gas sector would be the second-largest contributor as per the LTU's estimation of Tk 81.52 billion in FY 2017-18 although there would be no growth in revenue collection from the sector.
VAT collection from mobile-phone sector may post 10 per cent growth with Tk 47.33 billion in the current FY against Tk 43.03 billion last year.
All mobile-phone operators in the country, including Grameenphone, Robi Axiata, Banglalink, Teletalk and Pacific Bangladesh Telecom Limited, pay VAT under the unit.
Banking sector may contribute Tk 19.41 billion in the current FY with 8.47 per cent growth against Tk 19.41 billion last year.
Dutch-Bangla, Islami Bank, Pubali Bank, Sonali Bank, Uttara Bank, AB Bank, HSBC Bangladesh Limited, South East Bank, Prime Bank, Premier Bank, National Bank Limited, Agrani, Janata, Brac Bank, Bank Asia, Dhaka Bank, Standard Bank pay VAT under the unit.
VAT collection from electricity-distribution sector would grow by 14 per cent as the unit estimates Tk 10.51 billion in the current FY. Last year, the unit posted a record growth of 21.59 per cent -- the highest in the last five years.
The unit collected additional Tk 65.66 billion in revenue over its previous year's collection. It bagged Tk 4.26 billion through cancellation of rebate obtained by mobile-phone operators.
The LTU contributes 56 per cent of the aggregate VAT collection by the revenue board.
Meanwhile, the deferment of enforcement of a new VAT law that ratifies a uniform rate of 15 per cent VAT amid protests is anticipated to have a major impact on collection of the tax and, thus, on overall revenue mobilisation this fiscal year. And such strategic plans are designed partly to make up for the revenue shortfalls.