The National Board of Revenue (NBR) has achieved big success with 92 percent VAT collection in 2022-23 fiscal year.
The Value Added Tax (VAT) Division of the NBR earned Tk1.25 lakh crore with 17 percent growth in FY23, which was Tk1.8 lakh crore in FY22.
The Finance Division, a wing of the Ministry of Finance, has termed this achievement as 'exceptional' in the annual performance report despite the multi-faceted challenges in the economy.
According to the information received from the VAT department of the NBR, the revenue has collected Tk17,004 crore more VAT in the just-concluded financial year compared to FY22.
Among these, the achievement of the NBR in the last month of the fiscal year, June, was notable. The amount of VAT collected in June is Tk 15,614 crore with a growth of 17.70 percent.
Cigarettes accounted for the highest revenue from VAT collected in the recently concluded fiscal year. The amount of which is Tk 32,818 crores. Then there is the position of mobile phone operators. From which Tk9438 crores of VAT has been collected.
Member of VAT implementation and IT department of NBR Moinul Khan told UNB that there was a lot of adverse situation in FY23. VAT was not received from several projects due to cost containment policies.
Traders said that many companies could not open LCs regularly and import raw materials for products and could not carry out normal production.
Besides, some daily essential products including edible oil have to be exempted from VAT. Despite these challenges, “I think the 17 percent growth in VAT is a big achievement.
The revenue collection by the National Board of Revenue (NBR) from VAT witnessed a 17 percent growth in the last fiscal year (FY23) fetching Taka 1,25,424 crore.
BSS adds: The revenue collection from VAT by the revenue board in the previous fiscal year (FY22) was Taka 1,08,420 crore. In that consideration, the revenue collection from VAT in the FY23 was Taka 17,004 crore higher than the previous FY22.
According to a press release of the NBR, the VAT Commissionerates of Chattogram, Khulna and Dhaka South attained higher growth in revenue collection in the last fiscal year out of its 12 VAT Commissionerates witnessing 38.71 percent, 24.71 percent and 19.89 percent growth respectively.
The NBR data revealed that the LTU VAT Commissionerate collected the highest amount of Taka 58,566 crore as VAT in the last fiscal which was Taka 6,133 crore or 11.70 percent higher than the previous fiscal year.
Talking to BSS, a senior official of the NBR said that the overall collection of VAT in the last fiscal year was a bit less than the expectations due to the current global economic condition and the austerity measures of the government.
Otherwise, the VAT collection could have been higher, he said adding that the overall VAT collection could be termed as a 'good achievement'.
The official said that the VAT collection in the last fiscal year (FY23) witnessed 17 percent growth mainly for three reasons which are strict monitoring in VAT collection at the field-level, updating the production related materials of the business enterprises and taking effective measures for evading VAT.
The NBR data also showed that the highest amount of Taka 32,818 crore came as VAT from cigarettes and tobacco products in the last fiscal year (FY23) with a 10 percent growth followed by Taka 9,438 crore as VAT from the mobile phone operators with 11 percent growth.
Besides, the other sectors which achieved notable growth in VAT collection in the last fiscal are MS rod with 58.46 percent growth, soft drinks with 31.19 percent growth, cement with 33.72 percent growth, commercial space rent with 20.11 percent growth, petroleum gas with 21.68 percent growth, petroleum products with 23.43 percent growth, sweetmeat shops with 38 percent growth, residential hotels with 39 percent growth and restaurants with 16.78 percent growth.
The revenue collection target from VAT in the last fiscal year (FY23) was Taka 1,36,800 crore.
