10,000C shortfall in state coffers in 5 months of FY23
In November, NBR collected Tk24,703 crore with a 9.10% year-on-year growth
Tk10,000 Crore shortfall in state coffers in 5 months of FY23
In November, NBR collected Tk24,703 crore with a 9.10% year-on-year growth
The National Board of Revenue (NBR) office in Dhaka Mehedi Hasan/Dhaka Tribune
Meraj Mavis
December 26, 2022 10:13 PM
Even though the revenue collection has increased compared to the last fiscal year, there is already a big deficit seen in the state coffers compared to the revenue collection target of the current fiscal year.
According to NBR's latest provisional data, during the first five months of the current fiscal year (July-November), the National Board of Revenue (NBR) has collected a revenue of Tk115,620.77 crore.
At that time, the collection target was Tk125,334 crore, which means the revenue deficit at the time of discussion was Tk9,713.23 crore.
Data analysis also revealed that compared to the first five months of FY22, the revenue collection has increased by 13.06% during the same period of FY23. In the first five months of FY22, NBR collected Tk102,264.82 crore. However, NBR's revenue collection target is Tk370,000 crore in FY23.
To achieve the target, NBR needs to collect Tk254,379.23 crore more in the remaining seven months. It seems quite impossible to the experts. Former NBR Chairman Muhammad Abdul Majid told Dhaka Tribune: “Due to high prices in the international market, the revenue from customs duty increased a few months ago. But it is gradually decreasing now.”
“So, you can say that this is a reflection of our overall economic situation. I think the collection of customs duties slowed because of the restrictions on the import of non-essential items. Imports of high-duty items continue on a declining trend. Now achieving the budgetary target seems quite impossible to me,” he added.
But NBR officials are quite hopeful. Requesting anonymity, an NBR official said: “Due to the extension of one month in the tax return filing period in November, many returns were not filed and as a result, the tax did not arrive on time. But we are hopeful that the trend will improve in December.”
November Revenue
According to NBR's provisional data in November, they collected Tk24,703 crore, which is Tk913 crore more than the previous month. On the other hand, when compared year-on-year, November collection growth was 9.10%.
In November last year, NBR's collection amount was Tk22,642 crore. But the target of revenue collection in November this year was Tk28,028 crore. As a result, revenue collection fell by 11.86% compared to the monthly target.
Data analysis also shows that the growth in income tax collection in November was less than 1% while tax collection at the import stage increased by less than 9% and VAT collection at the local stage increased by about 16%.
