 | Govt targets 28pc higher revenue receipts
30 March, 2011
The government may go for a big push in realising its target of domestic resources mobilisation by increasing the revenue collection target in the next fiscal year by 28 percent over the current FY.
A finance ministry official said the government is going to take an initiative to collect larger portion of the revenue through the National Board of Revenue (NBR) to tackle the pressure of big expenditure and uncertainty over getting foreign assistance.
The finance ministry has already started preparing the budget for FY 2011-12. As a part of the preparation, a meeting of the resource committee held with the finance minister AMA Muhith in the chair last Sunday discussed the draft estimates.
In the next fiscal year the target of total revenue collection may be set at Tk 1,19,000 crore which is Tk 92,847 crore for the current FY. The revenue earning target of the current fiscal was upped by only 17 percent over the previous FY.
Of the total amount the NBR's target of revenue collection may be increased by 27 percent and set at Tk 92,000 crore, which is Tk 72,590 crore for this fiscal year.
NBR is likely to emphasise on income tax and Value Added Tax (Vat) to meet the revenue collection target. A target for more than 35 percent growth in income tax collection and more than 22 percent in Vat collection is expected to be set up.
The finance ministry official said that the NBR has been informed about the target but it may increase further.
The NBR has already crossed the revenue target set up for the current fiscal year. In the first eight months of the current FY, the income tax collection growth is 35 percent and growth of collection of Vat at local level is 31 percent.
NBR officials said those figures have been encouraging the NBR to take responsibility to collect more revenue.
In the revised budget of the current fiscal year the NBR's collection target may be increased by more than Tk 3,000 crore and set at Tk 76,000 crore.
NBR sources said several initiatives are needed to collect more revenue. A major reform will be made in Vat sector such as waiving the truncated Vat system. In case of income tax, tax holiday may be kept to a very limited level. Property tax may also be introduced.
A drive will be initiated to stop tax evasion, to bring the rich people under tax net. NBR has already started collecting data in big towns for this purpose.
The Prime minister on Sunday held a meeting with the NBR officials, from its chairman down to the commissioners. These plans have been presented to the PM and she has agreed to materialise it, sources said.
Release link:http://www.thedailystar.net/newDesign/news-details.php?nid=179671
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