The revenue earning target in the upcoming fiscal year’s budget will be Tk2,36,017 crore.
A recent meeting of Fiscal Coordination Council approved the figure which is a 16.18% higher than the current fiscal’s, Finance Division sources. Finance Minister AMA Muhith presided over the meeting.
He said the target is achievable as the new value-added tax system will be strictly implemented.
The national budget for the FY2017-18 will be placed in the Parliament on June 6.
The National Board of Revenue has increased the target of next fiscal year’s revenue to around Tk33,000 crore as the new value added tax law, which introduces a flat 15% VAT, will be implemented from the year.
The revenue collection target by the NBR for the FY2016-17 is Tk2,03,152 crore.
The upcoming revenue target is feared to put burden more on common people than on large business.
According to the latest NBR data, only 3% of the business entities which have Business Identification Number (BIN) paid VAT while 97% didn’t pay VAT yet.
Finance Minister AMA Muhith said there will be no scope for businessman to skip the payment of VAT under the new system.
He said Electronic Billing Machines will be set up in the shops for collection of VAT. The process will be centrally controlled, Muhith said.
According to the Office of the Controller General of Accounts data, only Tk43,591 crore was collected during last the six months of the last fiscal year against the total target of Tk1,02,8 85 crore.
Tax on income and profit earnings stood at Tk22,108 crore in first six months this fiscal year, but the total earning was estimated at Tk71,940 crore while the earning from custom duties was Tk9,509 crore in six months although the total estimate was Tk22,450 crore.
Earlier, the government slashed the NBR revenue collection target by Tk23,152 crore or 11% this fiscal year, said official sources.