The revenue board is almost certain that the revenue receipt during the outgoing fiscal year (FY) will fall far short of the revised target because of the pandemic effect.
The National Board of Revenue (NBR) collected Tk 1.97 trillion during the first 10 months of FY'21 as against the revised target of Tk 3.01 trillion.
It would have to collect the large volume of tax---Tk1.04 trillion--- during the remaining two months of the outgoing fiscal if it were to hit the revised target.
At the average rate of monthly collection between the months of July and April, it could collect Tk 330 billion in the remaining two months of the FY'21. Usually, in the final months the tax collection remains high. Yet it is unlikely to meet the huge gap.
However, the tax receipt during the first 10 months was higher by 13 per cent than that of the corresponding period of the last FY. In FY 2019-20, tax revenue collection posted a negative 2.26 per cent growth for the first time since independence.
The original tax revenue collection target was Tk 3.30 trillion for the current FY.
Tax officials said collection of such a volume of revenue in two months would be impossible, considering the current economic situation.
Although the tax revenue collection growth picked up in July-April period, field-level tax officials said achieving the target would not be possible this year too like the previous year.
Tax officials said the NBR would be able to collect higher taxes than the previous year despite experiencing a shortfall against the revised target in current FY.
Last year, the NBR collected Tk 2.18 trillion tax revenue, which was Tk 2.23 trillion in the previous year.
Taxmen further said the country's businesses already learnt how to survive amid the pandemic.
Revenue collection from some sectors, including cigarette, pharmaceuticals, mobile phone and cement, grew significantly in the period.
In April, the NBR collected Tk 193.26 billion tax revenue, which was Tk 89.40 billion in the corresponding month last year, as per official data.
All three wings of the NBR achieved higher growth in the first ten months of the FY. Customs wing achieved the highest growth of 20.36 per cent, while VAT wing 11.04 per cent, and income tax wing 8.26 per cent.
Former finance adviser Dr A B M Mirza Azizul Islam said the NBR might achieve 85 per cent of its revised target this year.
He said increasing the target for tax revenue collection is important, as the country's tax-GDP ratio is one of the lowest, below 10 per cent, in the world.
Responding to a question, he said not only the pandemic affected the revenue mobilisation, but there are other factors also.
"The NBR will have to expand tax coverage rather than increasing tax rates. Proper enforcement of tax measures is necessary to increase tax collection."
Many people, who are eligible to pay tax, still remain out of tax net. Even, a large number of Taxpayers Identification Number (TIN)-holders are not submitting tax returns, he added.
In FY 2019-20, the original tax revenue collection target was 3.25 trillion that was revised to Tk 3.0 trillion.
For the first time, the government might keep the original tax revenue collection target unchanged, fixing it Tk 3.30 trillion for FY 2021-22.
