Revenue collection from some sectors, including cigarette, pharmaceuticals, mobile phone and cement, grew significantly in the July and April period of the current fiscal (FY21).
The National Board of Revenue (NBR) mobilized Tk 193.26 billion tax revenue in April, which was Tk 89.40 billion in the corresponding month last year.
Cigarette, pharmaceuticals and mobile phone have made a remarkable contribution to the government's revenue collection efforts despite a downward trend in business activities amid Covid-19 pandemic, said a NBR official.
In the first three quarters of FY21, VAT collection from large taxpayers grew by 9.17 per cent. Cigarette industry was the largest contributor, as usual, according to the latest data of NBR.
Taxpayers under the Large Taxpayers Unit (LTU) under the VAT wing contributed to the growth in revenue collection in July-April period of the FY'21.
VAT collection of the unit posted a 15 per cent growth in the month of March alone compared to that of the corresponding month last year.
Until March, the unit collected Tk 30.40 billion more VAT than that of the previous FY.
VAT collection from cigarette companies stood at Tk 27 billion in March alone.
However, hike in price of cigarettes and Supplementary Duty (SD) levied in the budget also helped collect higher revenue from cigarette sector.
Price of low-tier cigarettes increased by Tk 2.0 in the budget, while it’s SD rose to 57 per cent from 55 per cent.
On the other hand, tax and price slab of medium-tier cigarette remained unchanged, while prices for high-tier and premium quality increased by Tk 4.0 and Tk 5.0 respectively.
According to a provisional data, the LTU collected an aggregate amount of VAT worth Tk 362.09 billion against its target of Tk 469.32 billion.
Revenue collection from mobile phone operators also increased to Tk 8.0 billion, as the use of mobile phone surged significantly in this pandemic.
Pharmaceutical companies also paid higher VAT in the first three quarters, officials said.
LTU commissioner Wahida Rahman Chowdhury said the unit has been able to maintain an upward growth of VAT collection from large taxpayers despite the pandemic.
She also said the change in policy measure on reduction of VAT on spectrum and other fees to 7.5 per cent helped the government realise revenue without engaging in any dispute with the mobile phone operators.
"We have received additional Tk 1.0 billion VAT in the current FY because of the change in VAT measure."
Besides, it seemed that the Covid-19 pandemic forced people to purchase more pharmaceutical items and safety gears, causing an increase in revenue of pharmaceutical companies.
VAT collection from hotels and restaurants declined significantly during the last one year as those were facing a severe blow due to the pandemic.
She, however, expressed optimism about higher VAT collection despite lockdown, as factories, banks and insurance companies remained opened during the period.