Jul-Feb revenue surges, still Tk58,000cr short of target

Highlights 

• NBR records nearly 2% YoY revenue growth from July to February
• Yet, it falls short of target set at over Tk2.80 lakh crore
• NBR observes positive growth in revenue collection for three consecutive months since December
• The rate of growth slows, with February showing only 1% increase compared to 7% in January
• NBR is taking steps to expand the tax net and curb tax evasion, including setting up intelligence units 

Revenue collection has been rising in recent months, with the National Board of Revenue (NBR) recording nearly 2% year-on-year growth in the first eight months of the current fiscal year.  

Still, revenue collection fell short of the target of over Tk2.80 lakh crore for the period by more than Tk58,000 crore.

According to NBR data, revenue collection from July to February stood at Tk221,817 crore, compared to Tk117,971 crore during the same period in the previous fiscal year. This represents an increase of around Tk4,000 crore. 

The NBR data also indicates positive growth in revenue collection for three consecutive months since December.  

Meanwhile, NBR Chairman Abdur Rahman Khan held a meeting with Income Tax Department officials today (23 March) to assess the field situation in revenue collection. The meeting directed authorities to expand the tax net to boost income tax collection.  

A commissioner at the meeting told The Business Standard, "Alongside the Central Intelligence Cell and the Income Tax Intelligence and Investigation Commissionerate, separate intelligence units have been established in all income tax commissionerates to track tax evaders."  

"Based on this, instructions have been issued to conduct raids and curb tax evasion," he added.  

According to NBR data, revenue collection increased by about 1% in February, compared to around 7% in January.  

However, an official said, "The significant shortfall in revenue collection compared to the target is primarily due to the previous government setting the target haphazardly. It was not determined based on the NBR's capacity or the actual state of the economy."  

During a meeting of the Economic Reporters' Forum on Saturday, the NBR chairman said the revenue target had been set without any research.  

According to NBR data, import tax and value-added tax (VAT) collections decreased by 5.23% and 0.13%, respectively, in February. In contrast, income tax collections increased by 7.78%.  

Additionally, import tax collections declined by 1.30% over the last eight months, while VAT and income tax collections rose by 2.21% and 4.09%, respectively.