Revenue target for FY25 to be left unchanged

The interim government will not bring down the revenue collection target for the current fiscal year as it aims to mobilise more domestic resources to reduce reliance on foreign loans, according to Finance and Commerce Adviser Salehuddin Ahmed.

The government faces a budget deficit every year and requires foreign loans to cover this shortfall, thereby increasing the country's external debt.

"So, as much as possible, we have to rely on domestic sources," Ahmed said while explaining why they decided against slashing the revenue collection target.

"Besides, we must also reduce the wastage of public money to this end," the finance and commerce adviser added.

Ahmed made these remarks at a discussion, styled "Seminar on Specific Changes/Modifications Made in Direct Taxes (Finance Act 2024)", organised by the Bangladesh Civil Service (Taxation) Association of the National Board of Revenue (NBR) yesterday.

The event was held at the NBR's multipurpose hall in the Agargaon area of Dhaka.

Around a month before it was ousted by a mass uprising on August 5, the Sheikh Hasina-led Awami League government had tasked the revenue authority with collecting Tk 480,000 crore in the national budget for fiscal year 2024-25, beginning from July 1.

This target is 25 percent higher than the actual revenue collection in the preceding fiscal year, raising scepticism about its achievability.

"Although it is ultimately not possible to completely cut out foreign funding, we cannot allow ourselves to always depend on others," Ahmed said.

He also said the country is often forced to follow the directions of foreign lenders, even in policymaking, to ensure continued access to their funds. The government has been facing this grim reality at present, he said, so it wanted to reduce dependence on others.

Emphasising that public funds should never be wasted, Ahmed said that the previous government had spent much of the taxpayers' money on unnecessary projects and initiatives.

"We must reduce those expenses," he said, urging the tax officials to do their utmost to collect revenue without harassing individuals or businesses.

"Taxpayers should not be nervous when they see you [tax officials]. Ordinary people tend to avoid tax inspectors in order to avoid being harassed. Please assure them that they have nothing to fear."

Furthermore, the finance advisor stressed the need for tax officials to raise more funds from internal sources to reduce reliance on foreign loans.

NBR Chairman Abdur Rahman Khan said the tax administration should be more business friendly.

"I urge everybody to file their tax returns online. The burden of public debt is rising and the NBR is struggling to meet revenue targets. This situation needs to change," he added.

Khan also expressed concern about the misuse of tax revenue, stating that the public's perception of how the government wastes their money must be remedied.

Bangladesh Civil Service (Taxation) Association President Md Lutful Azeem, who chaired the discussion, stressed the need for reforms in rules for direct taxation.

"Reforms to direct taxes are necessary. We need automation in tax administration because there is no alternative to that for increasing collection. No official should oppose this," he said.