Import fall pushes up tax revenue shortfall

FT ONLINE

Tax revenue shortfall aggravated further, hovering to a deficit worth Tk 374.97 billion against its target until January of the current fiscal year (FY), 2019-20, largely due to fall in import of revenue-generating commodities.

Tax on import-export stage posted 1.04 percent growth with the highest shortfall of Tk 158.26 billion against its target, according to the National Board of Revenue (NBR) provisional data disclosed on Monday.

The NBR's VAT Wing also faced shortfall worth Tk 120.21 billion, while Income Tax Wing Tk 96.49 billion.

The NBR's aggregate revenue collection posted a poor 8.47 percent growth in July-January period of FY 20 over the corresponding period of last year. The average growth in revenue collection during the last five years was 13.16 percent.

The NBR collected aggregate revenue worth Tk 1.26 trillion in the first seven months of the FY, against its target of Tk 1.64 trillion for the period.

In the first half of the current FY, shortfall against the revenue collection target was Tk 315.08 billion.

Of the three NBR departments, Income Tax Wing registered the highest growth of 14.70 percent, collecting Tk 389.70 billion tax in the July-January period.

VAT Wing achieved 9.81 percent growth in the period, collecting Tk 504.46 billion, while Customs Wing collected Tk 371.54 billion.

According to the NBR data, VAT collection at the import stage posted a negative 3.36 percent growth until January, while export duty collection declined by 97.04 percent over the corresponding period.

Turnover tax collection posted a negative 40.88 percent growth, while Supplementary Duty (SD) at local stage declined by 9.77 percent.

Travel tax also posted a negative 2.67 percent growth in the period, the NBR data revealed.

However, VAT collection at the local stage grew by 18.57 percent, while excise duty grew by 19.65 percent.

The government set an aggregate target of Tk 3.25 trillion for the NBR in FY 2019-20.