Despite 40pc short of collection
Mahfuja Mukul: According to the Ministry of Finance and the Board of Revenue, the revenue collection target is being increased in the budget of the new financial year as always. This time too there is an opportunity to whiten the black money, although in the current financial year it has not received much response. In the budget of the next financial year, there is a proposal to increase the incentive on remittances. Besides, special importance will be given to communication system.
In the current (2021-22) financial year, the revenue collection target was Tk three lakh 30 thousand crore. However, according to the latest data from the Board of Revenue, revenue of Tk 200,400 crore has been collected till last March, which is 62 percent of the target. As a result, there is considerable skepticism about achieving the target in the remaining three months. In this reality, the NBR wants to collect revenue of Tk 370,000 crore (Tk 3.70 trillion) in the next financial year, which is 12.12 percent more than the target of the current year.
It is learned that in the new financial year, the target of collecting Tk one lakh 36 thousand 900 crore rupees from value added tax (VAT) has been fixed. The target for income tax and travel tax has been set at Tk 1,22,100 crore. The target for revenue from customs or import duty is one lakh 11 thousand crore. These new targets are 12.12 per cent higher than the current target in VAT, 18.6 per cent in income tax and 15.6 per cent in customs.
However, NBR member (VAT) Abdul Mannan Sikder thinks that this target is achievable. He told that the matter is not final yet. I am working on how much revenue collection target can be set from which sector. However, this goal is achievable.
However, economists believe that this revenue collection target is not realistic. Nazneen Ahmed, a Bangladeshi economist at the United Nations Development Program (UNDP) in Dhaka, told that the Board of Revenue itself knew their proposal was a little too high-target. The target has not been achieved for several years. Still giving big targets (targets) for planning. But if there is no new mechanism (strategy) in revenue collection, it will not be possible to meet such a big target.
He said that the target will be achieved this year as well, in the end maybe 60-72 percent will be achieved. If the targets are bigger in the coming budget, if we do not show any new strategy, the situation will be the same as in the current financial year. So, the growth of GDP that is happening now, we are seeing the growth of per capita income. The Board of Revenue needs to make maximum efforts to bring this (growth) into tax collection. Otherwise, it will remain just a goal.
The opportunity to whiten black money may continue in the next financial year. Now there is an opportunity to invest in the stock market with a fixed rate of tax and launder cash by buying land and flats. This opportunity is coming to an end on June 30 (if not extended). However, the undisclosed amount (black money) investment in the current financial year has not received much response. From July to November last year, 694 people have laundered black money.
Of these, 558 flat and land owners have shown assets bought in black money. 123 taxpayers have laundered their cash or savings certificates and FDR money. Besides, only 13 people have invested in the black market.
Finance Minister AH Mustafa Kamal will present the budget for the fiscal year 2022-23 in the parliament on June 9. The country’s 51st budget, the 22nd budget of the Awami League government, the country’s infrastructure, social security, agriculture and employment are gaining importance. At a recent event, Planning Minister MA Mannan said the budget would provide incentives at the rate of 3 per cent on remittances sent by expatriates, which is currently 2.5 per cent.
The allowance for the disabled will be increased from Tk 650 to Tk 1,000 and the number of all types of beneficiaries will be increased under the social security fence.
At present, the corporate tax rates for listed and non-listed companies are 22.5 per cent and 30 per cent, respectively, which is higher than many countries in South Asia, the traders complained. In the post-Corona period and the effects of the Russia-Ukraine war, trade has not yet reached its full potential.
In this situation, the high corporate tax rate is creating a big obstacle, the businessmen said in the pre-budget discussion. In such a reality, the corporate tax rate may be reduced by 2.5 percent in the next budget, according to Revenue Board sources.
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