Data shows that the amount of revenue paid by many other Large Taxpayers Unit (LTU) organizations is not satisfactory
The National Board of Revenue (NBR) is planning to increase surveillance of the Large Taxpayers Unit (LTU) to meet the revenue collection target that is at risk of a large deficit in the second consecutive month of the current fiscal year.
According to the NBR data and research, there are 110 institutions in the country in the LTU category, but only 10 of them provide the highest revenue.
These 10 companies were responsible for 40% of the total VAT in FY21.
The LTUs paid Tk49,252 crore in VAT in total.
Calculated, the 10 companies contributed to more than 77% of that amount.
Data shows that the amount of revenue paid by many other LTU organizations is not satisfactory.
So, this time around the NBR is planning to increase surveillance on the rest, especially those whose amount of revenue has been reduced and those who are already in arrears.
Meanwhile, in the first month of the financial year, there was a huge deficit in comparison with the revenue collection target.
Although, the August calculation is not over yet and NBR sources said they are expecting a shortfall in the second month as well.
“Although there is a deficit compared to the target, our revenue collection has increased compared to last year, but as the Covid-19 is not over yet, there may be a deficit this month as well,” NBR officials said.
“However, our income from income tax is increasing, for example, in August, the sector earned Tk9,623 crore. This was Tk8,800 crore last year,” the officials added.
Coronavirus had the biggest effect last year, as it had an impact on all sectors.
With this in mind, the amount deposited to state coffers in this sector from income tax in August 2019 was Tk10,600 crore.
In other words, the NBR has not yet reached the level it was at two years ago.
In this regard, when asked if there are any new plans to meet the revenue targets for the current financial year, one official said: “Revenue collection usually remains a little less at the beginning of any fiscal year. I can assure you, our field officers are working hard to collect revenue. Moreover, besides regular collection from LTU institutions, it is also being considered to increase the emphasis on the collection of arrears.”
Earlier, the NBR chairman also said that new plans would be put in place to speed up the revenue collection.
In an interview with Dhaka Tribune, NBR Chairman Abu Hena Md Rahmatul Muneem said: “This is not the end of the fiscal year; rather, it is the beginning. We will come up with more new plans in the future. It is true that initially, our tax collection may face setbacks.”
“However, the government will get its benefits in the long run. But to be honest, we see it as a challenge, for now,” he added.
AB Mirza Azizul Islam, economist and financial adviser to a caretaker government, said: “It is well known that many are evading taxes and VAT. If they (NBR) want to stop this, they have to increase monitoring. But just making a good decision is not enough, it needs proper implementation. They have to keep in mind that the organizations should not be harassed unnecessarily because they are the biggest source of tax.”
According to the statistics, the NBR has faced a huge deficit in the VAT and customs sector despite the positive growth in the income tax sector.
Against the total revenue collection target of Tk21,061.40 crore in July, Tk13,833.65 crore has been collected.