Tax collection growth slows further

The National Board of Revenue (NBR) registered a further slowdown in the growth of tax collection, making it harder for the agency to achieve its target for the current fiscal year of 2022-23 ending in June.

The NBR collected Tk 196,037 crore in the July-February period of the current fiscal year, up nearly 9 per cent year-on-year, according to provisional data by the NBR.

During the same period of the last fiscal year, tax collection growth was 16.4 per cent.

With the collection, the NBR could attain 53 per cent of its target in eight months of the fiscal year beginning from July.

So, taxmen will have to collect 47 per cent, or nearly Tk 174,000 crore, in the remaining four months to attain the revenue collection target of Tk 370,000 crore for the current fiscal, which is unlikely in view of the annual average growth of tax collection.

The NBR posted 12 per cent annual growth in tax collection in the last five years, according to its data.

During the current fiscal year, tax collection started slowing since September 2022 amid falling customs tariff and direct taxes following import tightening by Bangladesh Bank, and reduced profits of firms.

In the July-February period, collection of tariffs from imports and exports grew only 4 per cent year-on-year to Tk 59,198 crore.

Taxmen logged 6 per cent growth in income tax collection to Tk 60,437 crore in the eight months ending in February compared to Tk 56,860 crore for the same period a year ago.

Only value added tax (VAT) collectors could post double digit growth.

Revenue officials collected Tk 76,400 crore as VAT, the indirect tax paid by consumers while purchasing goods and services, in the July-February period of fiscal 2022-23, up 15 per cent from a year ago.