Revenue board looks to enhance VAT collection to meet shortfall
In the first five months of the current fiscal year, revenue collection by the board has fallen Tk28,648 crore short of target
The National Board of Revenue has taken an initiative to increase Value Added Tax (VAT) collection in a bid to meet the revenue receipt target in the current fiscal year.
The board will do whatever is necessary to bring transparency and accountability in revenue collection, said new Chairman Abu Hena Md Rahmatul Muneem on Thursday.
"Revenue collection fails to meet the target for various reasons. We have chalked up plans to overcome the situation," he said while addressing a press conference at his office on the occasion of the International Customs Day to be observed on January 26.
Keep updated, follow The Business Standard's Google news channel
"It is also possible to enhance VAT collection by bringing transparency in this sector. The existing shortfall will go if we can collect as per the new law," the revenue board chairman said.
He said there is a scope for doing something innovative for many sectors in the country and the revenue board is one of them.
"We will try to come up with some innovative ideas or techniques in order to enhance revenue collection," said Muneem.
Talking about the common complaint of businessmen, he said it is prevalent that the business people always press for the withdrawal of VAT and tax as they think such privileges would help create a business-friendly environment.
"If any VAT is imposed, they say their business will shut. We always think of creating a business-friendly environment. For this, we impose VAT and tax after proper assessment," the revenue board chairman said.
In the first five months of the current fiscal year, revenue collection by the board has fallen Tk28,648 crore short of the target.
The VAT sector alone witnessed a deficit of Tk11,497 crore against its target of Tk42,926 crore for the same period.
After recently assuming office, Mumeen initiated a study to find out the main reason behind the collection shortfall. "Our target will be to expand the VAT and tax net."
In the first five months, the customs sector also registered a sluggish growth in revenue receipt. The collection in export and import duty witnessed a shortfall of Tk11,286 crore.
"It is not possible to collect more from this sector," Mumeen said, adding, "We have to reduce the collection target from the customs sector as per a directive of the World Trade Organisation, and for bilateral trade agreements."
The income tax sector faced a deficit of Tk5,873 crore in revenue receipt in the first five months of the current financial year.
"The revenue board has a plan to increase revenue collection from this sector," Mumeen said.
On January 26, the National Board of Revenue will observe the International Customs Day with various programmes.
