National

NBR sets Taka 2,96,201 crore revenue collection target in FY1

The revenue collection target by the National
Board of Revenue (NBR) has been set at Taka 2,96,201 crore in the proposed
national budget for FY19 of which the bulk of Taka 1,10,543 crore will come
from the Value Added Tax (VAT).

The Finance Minister revealed this while placing the proposed national
budget for FY19 at Jatiya Sangsad today.

Muhith informed the House that the NBR is eying to collect the 2nd
highest Taka 1,02,201 crore revenue from the income tax and other direct
taxes followed by Taka 48,766 crore from the supplementary duty, Taka 32,589
crore from import and export tax, Taka 2,091 crore from excise duty while the
rest of Taka 11 crore from turnover tax.

The revenue collection target by the NBR in the outgoing fiscal year
(FY18) was earlier set at Taka 2,48,190 crore which was later revised at Taka
2,25,000 crore.

Noting that it is essential to collect adequate revenue from internal
sources to continue current economic progress, Muhith said the present
government has emphasized on collection of revenue not by increasing tax rate
but through expansion of tax base and encouraging self-compliance by
reforming existing tax system.

In case of Income Tax, he said the area of tax related services has been
expanded, Income Tax Fairs are being arranged throughout the country, where
taxpayers are participating with great enthusiasm.

This year, Muhith said almost 2 lakhs taxpayers have submitted Income
Tax Return in tax fairs; almost 9 lakhs taxpayers have received tax related
services.

He said initiatives have been taken to make the tax management system
fully automated and digitalized by increasing the use of ICT in tax
administration; e-TIN registration is working very smoothly; on-line return
submission system has been introduced, plan of enhancement of which is also
being taken.

“We hope that a considerable number of taxpayers are going to submit
their returns on-line in upcoming years. Tax collection is no more considered
as harassment. Tax base is quite extensive now. The number of registered tax
payers and return submission has increased beyond our expected level,” Muhith
said adding the number of registered tax payers is more than 35 lakhs now.

The veteran Minister also hoped the number of registered taxpayers and
return submission within next 5 years would be one crore and eighty lakhs,
respectively.

“People’s trust in income tax system, especially spontaneous
participation of young generation in tax payment is giving us a very positive
signal,” he added.

The Finance Minister said the NBR collects almost 85 percentages of the
country’s total revenue. “The impetus of revenue collection has been quite
good in recent years. Average growth of NBR revenue collection in this decade
is more than 17 percentages, which is the highest in last 4 decades. As a
result, our tax-GDP ratio is increasing gradually although not to our
satisfactory level.”

Since the highest portion of revenue is being collected from VAT and
Supplementary Duty among all the revenues collected by NBR, he said the
government has taken initiatives to introduce VAT Online system as a part of
digitalising the VAT administration to strengthen the revenue base.

He informed that already 1,05,000 units have taken on-line VAT
registration, initiatives have been taken to install Electronic Fiscal Device
(EFD) in business units for ensuring transparency in VAT collection system.

“After implementation of these reforms, cost of doing business will
decrease, business friendly environment will be created, momentum shall be
created in revenue administration, evasion of tax will decrease, transparency
in revenue collection will be ensured and growth of VAT collection will
continue,” he added.