Revenue Deficit of 58,000 crore taka in 6 months. The income collected for the first six months (July-December) of the current fiscal year 2024-25 was Tk 156,419 crore. This is TK 58 crore less than the aim. This was disclosed by the National Board of Revenue.
Revenue Deficit of: According to the company’s data, revenue collection for the six months from July to December of this fiscal year was Tk 156,419 crore. This is TK 57,724 crore less than the target. This represents a 99% drop over the previous year.
Meanwhile, experts blamed the previous government’s extremely high-income target for the revenue collection failure.
According to them, this is due to widespread political upheaval in July-August, the failure to recover the predicted economic momentum in the following months, and the slow pace of activities of the National Board of Revenue’s (NBR) field personnel.
Dr. Mohammad Abdul Majid, former head of the National Board of Revenue (NBR), informed the media that the previous government set a high revenue target without considering the realities. As a result, there is currently a gap of around 58 thousand crore rupees. The July-August rebellion and its aftermath had an influence on the economy. On the one hand, the pace of business is slow, but there is a sensation of emptiness in the field-level collection offices. This is also one of the causes for the low revenue.
Several NBR officials stated that the revenue target for the current fiscal year has been raised at an abnormal rate. As a result, revenue is impacted. Political instability is also a factor. Recovery has been slowed for a variety of factors, including the global economic slump, an increase in the value of the dollar, and a decrease in funding for significant projects.
NBR officials further stated that the revenue generated by the iVAS is being calculated for the current fiscal year. As a result, there is no opportunity to demonstrate more revenue in any field-level office.
Ali Ahmed, a former member of the NBR’s VAT branch, told the media that the government’s development initiatives have been stalled. Again, uncertainty has stifled investment. As a result, tax rates are lower.
After analyzing the rate of revenue collection, it was discovered that in December of last year, income tax collection climbed by about 15% and import tax collection increased by about 10%. However, during the period under consideration, VAT collection fell by nearly 6% compared to the same period in the previous fiscal year.
The Finance Ministry has set a revenue target of Tk480,000 crore for the current fiscal year to cover the country’s operating expenses. However, in response to the upheaval created by the movement, conflict, and change of power, the government is employing a contractionary monetary policy to keep inflation under control. As a result, the National Board of Revenue (NBR) is unable to meet its revenue targets.
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