The revenue sector suffers major setback from the impact of July-August political unrest. The sluggish economic activities following the unrest are visible in revenue collection as business throughout the stopped for a while during this period.
There has been a deficit of Tk 30,768 crore in revenue collection of customs and other taxes during the first four months (July-October) of the current fiscal year.
This picture has emerged from the provisional accounts of the National Board of Revenue (NBR). It was not possible to collect anticipated customs and taxes revenue in July, August, September and October. The NBR was well behind the collection target every month.
Economic activities across the country were hampered during the quota movement in July and the subsequent mass movement until the first week of August. Before the fall of Sheikh Hasina government on August 5, there was a curfew for several days.
During this time, factories and government and private offices were closed. All these had an impact on collection of customs and taxes. Although the new government was formed on August 8, there was uncertainty in many areas.
Various professional classes came up with many demands. As a result, the desired level of revenue could not be collected amid the unrest, customs and tax officials said.
Moreover, the previous government increased revenue target every year to balance the budget. That is why the target was not achieved.
NBR's figure suggest revenue collection target for July-October period was Tk 1,32,112 crore but Tk 1,01,344 crore was collected. Revenue deficit in those four months stood at Tk 30,767 crore.
Officials said revenue collection will increase further after the submission of VAT returns. Then the deficit will come down.
NBR data shows, more revenue has been collected this time compared to the first four months of the last fiscal year (2023-24).
A total of Tk 93,242 crore in customs and taxes was collected during July-October last year. Thus the growth in revenue collection during this period was 8.69 percent.
The current year target has been set at Tk 4,80,000 crore in customs and taxes and NBR that the pace of tax collection will increase by end of the year.
NBR sources said, none of the sector-wise targets for imports, VAT and income tax were met during the July-October period. The highest deficit was in income tax sector. The deficit in this sector was Tk 12,739 crore in four months.
Although the target for collection of income tax was Tk 45,242 crore, its collection was far short at Tk 32,489 crore
In the four months, target of collection was Tk 39,630 crore for import tax but Tk 32,718 crore was collected.
In the last July-October, period deficit in VAT collection was Tk 11,102 crore. The target for collection in this sector during this period was Tk 47,239 crore.
