NBR fears revenue loss if project implementation slows

Slowing the implementation of less important projects in the current fiscal year might have a negative impact on revenue collection, fears the officials of the National Board of Revenue (NBR).

The government has decided to slow down implementation of less important projects to cope up with the decline in the country's dollar reserve.

Besides, collection of value added tax (VAT) from large taxpayers is not going on as per expectations, which was discussed yesterday at a meeting of tax officials presided over by NBR Chairman Abu Hena Md Rahmatul Muneem at the Rajaswa Bhaban in Segunbagicha, Dhaka.

The NBR chairman has ordered tax officials to increase field level supervision to increase revenue collection, said sources present at the meeting.

On condition of anonymity, an NBR member present at the meeting told The Business Standard, "Government expenditure will drop if the implementation of less essential projects is slowed down in the current year. The government used to collect the VAT deducted at source from the material suppliers of these projects. There is a concern that the amount of VAT collected in this way might decrease this year."

According to sources, the issue of drop in VAT collection from a number of large taxpayers including the cigarette companies was also discussed in the meeting.

The NBR aims to collect Tk3.7 lakh crore revenue in the current fiscal year. About Tk1.37 lakh of that amount will be collected as VAT.