Import fall pushes up tax revenue shortfall

Tax revenue shortfall aggravated further, hovering to a deficit worth Tk 374.97 billion against its target until January of the current fiscal year (FY), 2019-20, largely due to fall in import of revenue-generating commodities.

Tax on import-export stage posted 1.04 per cent growth with the highest shortfall of Tk 158.26 billion against its target, according to the National Board of Revenue (NBR) provisional data disclosed on Monday.

The NBR's VAT Wing also faced shortfall worth Tk 120.21 billion, while Income Tax Wing Tk 96.49 billion.

The NBR's aggregate revenue collection posted a poor 8.47 per cent growth in July-January period of FY 20 over the corresponding period of last year. Average growth in revenue collection during last five years was 13.16 per cent.

The NBR collected aggregate revenue worth Tk 1.26 trillion in the first seven months of the FY, against its target of Tk 1.64 trillion for the period.

In the first half of the current FY, shortfall against revenue collection target was Tk 315.08 billion.

Of the three NBR departments, Income Tax Wing registered the highest growth of 14.70 per cent, collecting Tk 389.70 billion tax in July-January period.

VAT Wing achieved 9.81 per cent growth in the period, collecting Tk 504.46 billion, while Customs Wing collected Tk 371.54 billion.

According to the NBR data, VAT collection at import stage posted a negative 3.36 per cent growth until January, while export duty collection declined by 97.04 per cent over the corresponding period.

Turnover tax collection posted a negative 40.88 per cent growth, while Supplementary Duty (SD) at local stage declined by 9.77 per cent.

Travel tax also posted a negative 2.67 per cent growth in the period, the NBR data revealed.

However, VAT collection at local stage grew by 18.57 per cent, while excise duty grew by 19.65 per cent.

The government set an aggregate target of Tk 3.25 trillion for the NBR in FY 2019-20.

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