Govt aims at boosting revenue collection

The government has set a revenue target for running 2021-22 fiscal that is 10.7pc higher than that of the revised target in fiscal 2020-21

The government has projected an increase in revenue collection in the coming days as the country’s economy has started recovering gradually from the shock of the Covid-19 pandemic.

According to an official document, the revenue collection for 2023-24 fiscal has been projected at Tk4,999.7 billion while it will be Tk4362.4 billion for 2022-23 fiscal.

In the running fiscal of 2021-22, the revenue collection has been fixed at Tk3,890 billion.

The document said that ongoing and the proposed reform plans undertaken by the government are expected to boost the domestic revenue reaching the target in the medium term.

The government has set a revenue target of Tk3890 billion for running 2021-22 fiscal, which is 10.7pc higher than that of the revised target in fiscal 2020-21.

The document mentioned that revenue collection needs to grow at a rate of 21.0pc on average from the actual collection in fiscal 2020-21 for achieving the revenue target in fiscal 2021-22.

Revenue mobilization is expected to be strengthened in the medium term when the economy would recover from the Covid-19 pandemic and the NBR reform programs are implemented fully.

The total target of the revenue collection for the running 2021-22 fiscal is Tk3890 billion. Of the total amount tax revenue will contribute Tk3,460 billion. The share for the National Board of Revenue (NBR) is Tk3,300 billion.

The government projects to collect Tk1,049.5 billion from Income and profit taxes, Tk379.1 billion from customs duties and Tk1,822.10 billion from VAT and supplementary duties in fiscal 2021-22.

The non-NBR tax will be Tk160 billion with Tk430 billion from non-tax revenue.

Income and profit taxes, customs duties, and VAT and supplementary duties require to grow by 9.4pc, 2pc, and 11.4pc respectively, on an average, from the revised collection in fiscal 2020-21 to achieve revenue targets in fiscal 2021-22.

For the 2022-23 fiscal, the total target of the revenue collection has been projected at Tk4362.40 billion. Of the total amount tax revenue will contribute Tk3916.5 billion. The share for the National Board of Revenue (NBR) is Tk3718.7 billion.

The government projects to collect Tk1202.1 billion from Income and profit taxes, Tk434.3 billion from customs duties and Tk2008.6 billion from VAT and supplementary duties in fiscal 2022-24.

The non-NBR tax will be Tk197 billion with Tk445 billion from non-tax revenue.

Income and profit taxes, customs duties, and VAT and supplementary duties require growing by 14.5pc, 14.6pc, and 10.2pc respectively, on average, from the collection in fiscal 2021-22 to achieve revenue targets in fiscal 2022-23.

The total target of the revenue collection for the 2023-24 fiscal is Tk4999.7 billion. Of the total amount tax revenue will contribute Tk4480.30 billion. The share for the National Board of Revenue (NBR) will be Tk4253.4 billion.

The government projects to collect Tk1378.2 billion from Income and profit taxes, Tk510 billion from customs duties and Tk2268.50 billion from VAT and supplementary duties.

The non-NBR tax will be Tk226.9 billion with Tk519.3 billion from non-tax revenue.

Income and profit taxes, customs duties, and VAT and supplementary duties require growing by 14.7pc, 17.6pc, and 9pc respectively, on average, from the collection in fiscal 2022-23 to achieve revenue targets in fiscal 2023-24.