Despite the large taxpayer units (LTUs) paying a huge amount of tax returns, the National Board of Revenue (NBR) did not meet the revised target for the 2020-21 fiscal year by Tk 44,000 crore.
NBR officials stated that the LTUs formed the majority of the tax returns during the coronavirus pandemic, otherwise the figures would have looked even direr.
Based on the data from NBR, the LTUs helped exceed NBR’s LTU goal by realizing Tk 24,011 crore at a growth of 15.22 per cent in FY 21, in comparison to the previous fiscal.
In excess of 50 per cent of Tk 93,000 crore in VAT came from 157 large companies.
It meant that even though the overall VAT collection increased 10.82 per cent, the collection from large taxpayers increased 15.22 per cent.
Data from the NBR stated that income tax growth of 14.11 per cent was the highest in revenue collection, an upturn in the total collection to Tk 85,000 crore against the target of Tk 97,000 crore.
Income tax department officials stated that 86 per cent of the money collected in income tax had been termed as source tax, which was why income tax targets from individuals and institutions did not fall short.
Nevertheless, NBR chairman Abu Hena Md Rahmatul Muneem expressed his satisfaction regarding their success.
A former adviser to the caretaker government and an economist, AB Mirza Azizul Islam stated that because of the current coronavirus pandemic, small businesses entities suffered badly, but large companies continued to make profits.
He also stated that this is the reason why VAT collection from tobacco and mobile phone manufacturers, banks and large companies of consumer products increased.
The collection target NBR had set for FY21, as well as the upcoming one for FY22, remain impossible to achieve. NBR will never be able to achieve this, said the economist.
He further added that even though the income of individual taxpayers decreased, the large companies did not see an impact in their business during the pandemic, and the revenue collection was successful in making them compliant.
In the last fiscal year, the target of Tk 96,000 crore has been achieved in the income tax sector, a 10.62 per cent from the previous fiscal.