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Mega projects boost revenue earnings despite pandemic

Published : 05 Oct 2021 12:03 AM | Updated : 06 Oct 2021 11:38 AM

Revenue collection has significantly increased due to the implementation of mega projects, and has gained momentum despite the corona pandemic.

In particular, Rooppur Nuclear Power Plant, Padma Bridge, Metro Rail and several other high priority projects of the government are being implemented expeditiously.

As a result, the government's revenue collection has increased.

This has been stated in a recent review report of the National Board of Revenue (NBR).

The report is based on the revenue collection of the last fiscal year.

Read more: NBR unveils Tk 8.48cr VAT evasion against Buildtrade Group

In the last fiscal year 2020-21, about Tk 2.60 lakh crore of revenue was collected despite the Corona epidemic.

The growth has been 20 percent, the highest in the last 10 years.

Of this, import duty is Tk 77,150 crore, Value Added Tax Tk 97,507 crore and Income tax Tk 85.23 crore.

In the fiscal year 2019-20, the total revenue was Tk 2.16 lakh crore and the growth was negative.

The NBR's assessment has shown that the collection of source tax and corporate tax has been higher in the last fiscal year.

It said the revenue collection has boomed as business in the mobile phone and pharmaceutical sectors was booming during the corona period.

A policy-making official of the NBR said that the source tax from mega projects has gone up.

He said the cost of  the government projects, especially the Rooppur nuclear power plant, the Padma Bridge, the Metrorail and five mega projects , was about Tk 36,000 crore in the last fiscal year.

The contractors of these projects have deducted withholding tax at the applicable rate at the time of payment of bills.

As a result, more than Tk 8,000 crore of revenue has been collected in this sector, he added.

According to the report, taxes are deducted at various stages against the products or services of various non-government organizations.

It has been seen that a total of Tk 30,000 crore has come from the source tax in this way.

Revenue collection has increased in the last financial year despite the business slowdown due to tax cuts and corona.

Dr Atiur Rahman, former Bangladesh Bank governor and eminent economist, told Bangladesh Post, mega projects are both growth and employment multipliers.

"The value addition to the economy can be substantial. I have not calculated the value addition, but there will be huge gains in terms of GDP," he added.

Former NBR member Syed Aminul Karim said that businesses have faced a huge crisis because of corona, but major government projects such as the Padma Bridge, Metrorail and Rooppur Nuclear Power Plant are progressing fast.

"The contractors of these big projects have to pay huge bills. In contrast to that bill, the tax has been deducted from this. In addition to talking on mobile phones during Corona, data usage has also increased. As a result, more taxes have been collected from mobile phone companies. Besides, the business of the pharmaceutical company has been good, he mentioned.

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