Saturday, November 25, 2017

NBR makes plan to offset revenue deficit after VAT setback

  • Staff Correspondent,
    Published: 2017-07-30 21:27:05 BdST


The National Board of Revenue has drawn up a plan to meet the Tk 200 billion deficit after the government dropped the decision to implement uniform VAT from this fiscal year.

The board, however, informed the parliamentary standing committee on the finance ministry at a meeting on Sunday that the government will still be in deficit of more than Tk 50 billion after executing the plan.

The parliament has passed the Tk 4.26 trillion budget for this fiscal year, with a revenue target of Tk 2.88 trillion.

From value-added tax, the government had planned to earn more than Tk 910 billion, a fourth of the total target.

After deferring the implementation of the VAT law, it will face a shortfall of Tk 200 billion.

Prime Minister Sheikh Hasina said in her closing speech in the parliament on the budget that the deficit in revenue will have to be taken care of at any rate.

In a report submitted to the parliamentary committee, the NBR said it would be possible to collect Tk 56 billion through the measures taken in the revenue budget.

The estimated figures include Tk 50 billion from cigarettes and bidis, Tk 5 billion from excise duty on bank accounts and plane fares, and Tk 1 billion from supplementary tax on fast food.

The NBR also sees possibilities of collecting another Tk 20 billion from due taxes and increase in tax compliance, and Tk 93.8 billion more from expanded businesses and natural growth of financial activities.

Finally, the revenue deficit will stand at Tk 52 billion, according to the NBR report.

"In order to meet this deficit, necessary measures have been initiated for settling the big cases through the VAT commissionerates under the NBR and unhindered collection of dues," the report says.

The board also drew the finance ministry's attention to Tk 20 billion dues from Bangladesh Petroleum Corporation and around Tk 220 billion from Petrobangla.

After the meeting, standing committee member Sawkat Chowdhure told "The committee has asked the NBR to meet the deficit by implementing the plan.

"It also recommended expansion of VAT areas and collection of dues," he said.