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Tax revenue collection in FY'18

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Tax revenue collection in FY '18
NBR misses revised target by 9.0pc, original 17.0pc
Doulot Akter Mala | Monday, 2 July 2018

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Tax-revenue mobilised by the National Board of Revenue (NBR) fell short of the revised target by Tk 200 billion in the just concluded Fiscal Year (FY), according to a provisional figure.

Revenue officials and experts attributed the shortfall to the setting of an 'ambitious' target by the government.

The NBR collected an aggregate Tk 2.05 trillion worth of tax revenue in FY 2017-18 against the revised target of Tk 2.25 trillion.

Original target for tax revenue collection was Tk 2.48 trillion for the last FY.

According to the provisional data, the revenue collection shortfall is Tk 430 billion against its original target.

However, the revenue collection achieved 20 per cent growth over the last FY.

In FY 2016-17, the NBR achieved 19 per cent growth in revenue collection.

Both income tax and Value Added Tax (VAT) wing posted around 22 per cent growth each in FY' 18. Customs wing lagged behind achieving 13 per cent growth over the corresponding period, according to NBR figure.

In FY' 18, VAT wing collected the highest revenue worth Tk 778 billion, income tax wing Tk 662 billion and customs wing Tk 615 billion.

Officials said the target was ambitious for NBR in view of current economic condition and pace of private sector investment.

A senior official of the NBR said the revenue collection figure may go up after compilation of final data by the end of this month (July).

"We are happy with the impressive growth of revenue collection. The growth may be within 23 to 25 per cent after getting all revenue collection figures until June 30 from the field level offices," he said.

The NBR managed to minimise the volume of its revenue collection shortfall by end of the FY. The shortfall in revenue collection was Tk 300 billion until April while, the volume of shortfall in tax revenue collection was Tk 230 billion in July-March period.

Average revenue collection growth in the last five years was 14.28 per cent.

The original revenue collection target for NBR was set expecting 45 per cent growth over the last year.

The revised target for the current FY was also set expecting 32 per cent growth over the actual tax revenue collection last year.

For the upcoming FY, the government has set Tk 2.96 trillion target for NBR eyeing 33 per cent growth.

The target is Tk 710 billion higher than that of the revised tax revenue collection target for the current FY.

Talking to the FE Sunday, former finance adviser Mirza Azizul Islam said the government should set revenue collection target considering its trend of last few years.

"The target of revenue collection was over-ambitious," he added.

Also, the NBR needs to initiate sufficient steps to expand the tax base rather than increasing tax rate, he added.

There are many people escaping payment of tax who are living outside the major cities, he added.

The revenue board should lay emphasis on collection of proper VAT, he added.

"Many of the shops avoid giving cash memo to the consumers to evade VAT. They do this with the help of a section of VAT officials," he added.

NBR officials said the enforcement mechanism will be strengthened this year with the help of a number of new budgetary measures.

Officials said the compilation of final revenue collection data is taking time this year as it would be reconciled with the Controller General of Accounts (CGA) data.

Last year, there was a large gap between NBR's compiled revenue collection data and CGA's actual figure.

The NBR recorded Tk 1.85 trillion revenue collection in FY 2016-17 but CGA found actual collection of Tk 1.71 trillion.

doulot_akter@yahoo.com


Editor : A.H.M Moazzem Hossain
Published by the Editor for International Publications Limited from Tropicana Tower (4th floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission Road, Dhaka-1000.

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Email : editor@thefinancialexpress-bd.com,fexpress68@gmail.com
 
BD tax revenue collection is one of the lowest in the region. Rampant corruption and organisational ineptitude is to blame.

BD needs to target low hanging fruits. Start a drive to register and get all the Indian illegals to pay tax and tax any and all transfer of funds from BD to India.
 
BD needs to target low hanging fruits. Start a drive to register and get all the Indian illegals to pay tax and tax any and all transfer of funds from BD to India.

These are the big fish. They earn huge checks and hardly pay any taxes. The govt. should get its share...
 
20% year on year is excellent on its own, i'm not sure any regional country has achieved that.
Indian direct tax registered 18 pc growth while ruppee depriciated 0.4 pc in the same period( 1 april 2017-18). So 17.6 dollar growth.
Bangladesh 20pc growth with 4 pc taka depreciation - ~16 pc growth in dollar terms.

Moreover GST also recorded 18 pc growth and excise over 25 pc even after 2 major tax cuts in India. I will need to dwell deeper but i think India might be doing just a tad bit better for now.
 
Indian direct tax registered 18 pc growth while ruppee depriciated 0.4 pc in the same period( 1 april 2017-18). So 17.6 dollar growth.
Bangladesh 20pc growth with 4 pc taka depreciation - ~16 pc growth in dollar terms.

Moreover GST also recorded 18 pc growth and excise over 25 pc even after 2 major tax cuts in India. I will need to dwell deeper but i think India might be doing just a tad bit better for now.

Well done but what's USD gotta do with Indian domestic tax? You're up 18pc in tax collection, simple, no need for mental gymnastics to compete unnecessarily with BD here.
 
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Actually it will be 23-25% as per the report at the end of the total calculations of fiscal year'18 (just concluded year).

Revised target for current year(2018-2019) is set at 32%.

Regards.
20% year on year is excellent on its own, i'm not sure any regional country has achieved that.

Excellent news! Take out 13% for inflation + GDP growth and we can see a good spike in tax take as percentage of GDP.
 
Well done but what's USD gotta do with Indian domestic tax? You're up 18pc in tax collection, simple, no need for mental gymnastics to compete unnecessarily with BD here.
The point was you have higher inflation. So your real growth is a little slower. I used USD to depict the same.
 
Yes,It is slightly.
Bangladesh-5.68%
India-4.96%

Anyway, I just want to know the relationship between tax collection growth rate with inflation rate. Is there any direct relation between these two?

Regards.
The point was you have higher inflation. So your real growth is a little slower. I used USD to depict the same.
 
Yes,It is slightly.
Bangladesh-5.68%
India-4.96%

Anyway, I just want to know the relationship between tax collection growth rate with inflation rate. Is there any direct relation between these two?

Regards.
Yes usually higher inflation is correlated with higher tax collections, as higher inflation by definition means there is more currency in the market than necessary.
 
Inflation is inflation and tax revenue is tax revenue. Don't conflate 2 things for your convenience.

Why on earth would any country use USD to measure domestic tax intake? In almost all international stats, tax revenue is provided in the local currency. Don't spout nonsense using basic knowledge.

In fact, changes in taxation have a direct on affect inflation as it affects spendable income - do you understand why tax revenue must therefore be treated independently to exchange rates?


The point was you have higher inflation. So your real growth is a little slower. I used USD to depict the same.

Yes,It is slightly.
Bangladesh-5.68%
India-4.96%

Anyway, I just want to know the relationship between tax collection growth rate with inflation rate. Is there any direct relation between these two?

Regards.

Bro he's taking shots in the dark, some people will do mental somersaults to prove shining India is superior, even though no one is competing with them.
 
Inflation is inflation and tax revenue is tax revenue. Don't conflate 2 things for your convenience.

Why on earth would any country use USD to measure domestic tax intake? In almost all international stats, tax revenue is provided in the local currency. Don't spout nonsense using basic knowledge.

In fact, changes in taxation have a direct on affect inflation as it affects spendable income - do you understand why tax revenue must therefore be treated independently to exchange rates?






Bro he's taking shots in the dark, some people will do mental somersaults to prove shining India is superior, even though no one is competing with them.
Either you are dumb or just ignorant. I have a strong feeling its the latter.
You have to correct growth of any revenue with inflation to get true growth ( also known as nominal ). Exchange rates are quick to gauge this effect and correct often in line with inflation that is why USD comparison was used.

You have no idea of how growth revenue and inflation are intertwined. Moreover you have no idea on how to analyse data to infer results. You sir are a keyboard warrior who believes everybody is like you who likes to open his mouth big with little knowledge.

Dont give me redundant statements like "Inflation is inflation and tax revenue is tax revenue". If you have any data or facts i will be all ears. Dont expect me to reply to your cacophony just beacuse your ego somehow wrongly linked to your national image got hurt.
 
Either you are dumb or just ignorant. I have a strong feeling its the latter.
You have to correct growth of any revenue with inflation to get true growth ( also known as nominal ). Exchange rates are quick to gauge this effect and correct often in line with inflation that is why USD comparison was used.

You have no idea of how growth revenue and inflation are intertwined. Moreover you have no idea on how to analyse data to infer results. You sir are a keyboard warrior who believes everybody is like you who likes to open his mouth big with little knowledge.

Dont give me redundant statements like "Inflation is inflation and tax revenue is tax revenue". If you have any data or facts i will be all ears. Dont expect me to reply to your cacophony just beacuse your ego somehow wrongly linked to your national image got hurt.

Dumbass, instead of spouting nonsense why don't you show me one country on earth that uses USD (other than Usa) to show domestic tax revenue figures?
 

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