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NBR targets Tk 3.26 trillion in FY20


Published : 25 May 2019 08:50 PM | Updated : 05 Sep 2020 05:28 AM

The National Board of Revenue (NBR) has targeted Tk 325,600-crore revenue collection for the fiscal year 2019-20. In addition, another Tk 14,500 crore will be collected from non-NBR tax sources bringing the total tax collection to Tk 340,100 crore, a reliable source in the finance ministry told Bangladesh Post recently.

The exchequer will have to attain 9.9 percent year-on-year growth to collect the above mentioned amount of tax, as the revenue target for the FY19 is set at Tk 296,200 crore. However, the revenue target for FY19 has already been revised to Tk 280,000 crore, and it will have to be revised again as the revenue shortfall in the first nine months crossed Tk 50,000 crore, tax officials explained.

The revenue target for the FY20 will be around 30 percent up from that of the actual collection in FY19, they said. According to sources, the government is preparing the next budget aligned with the goals of the 7th five-year plan where the Tax-GDP ratio will be upgraded to 15.3 percent. The ministry source said the entire revenue target for FY20 will be at Tk 377,810 crore.

According to the estimated figure, the total tax revenue target will be 11.8 percent of GDP while the NBR revenue will be 11.3 percent simultaneously. Meanwhile, the NBR sources said the income tax will be the highest revenue collecting regime in the new fiscal as the government earlier had taken a plan to increase the income tax revenue to 50 percent of the entire revenue by 2021.

The NBR has already taken several moves for the expansion of the net of this direct tax, including enhancing its infrastructural capacity. The VAT and Supplementary Duty Act-2012 will be enforced from July next and the government for ensuring revenue growth is set to expand the purview of VAT instead of increasing its rates, which will be reflected on the finance minister’s budget speech, sources said.

The finance minister earlier said several times that the government would boost the revenue collection through the expansion of net, not putting extra burden on the existing tax payers. “The people who are tax-eligible but do not pay tax will be brought under the net,” he added. According to sources in finance ministry, the outlay of budget for FY2019-20 will be Tk 523,190 crore where the total revenue target will be Tk 377,810 crore.

The entire revenue target for FY2018-19 is fixed at Tk 339,280 crore, and as per this estimate, the revenue target will be up by Tk 38,530 crore in the next fiscal.
The tax revenue for the ongoing fiscal is Tk 305,930 crore while the target for NBR is Tk 296,200 crore. Sources said the government is now optimistic about increasing the revenue collection on the back of the new VAT and Supplementary Duty Act, as the new law could exponentially avert tax evasion.

According to the new law, the VAT regime will totally be an automated one, ensuring the compliance of both tax officials and the businesses. Apart from this, the government is also set to introduce the customs law in the next year that could also help increase the revenue collection.