Revenue collection grew 16% in Jul-Feb

The government's revenue collection increased by 16 percent year-on-year in the first eight months of the current fiscal year thanks to a rise in VAT receipts from multinational companies.

The National Board of Revenue (NBR) collected Tk 196,039 crore in July-February of 2023-24, provisional data from the tax collector showed.

Of the amount, Tk 76,403 crore was raised in the form of value-added tax (VAT), up 16.10 percent year-on-year. Income tax collections climbed 19.65 percent to Tk 60,437 crore while receipts from customs duties rose 10.77 percent to Tk 59,198 crore.

The lower customs collections might be a reflection of the falling international trade of Bangladesh, stemming from the persistently higher US dollar rate, which has made imports costlier, and the slowdown in economic activities at home.

Imports declined 18 percent in July-January, central bank data showed.

The NBR, however, missed the overall collection target by 45 percent during the eight-month period. Revenue from the income tax segment was behind the target by 51 percent while customs duties and VAT collections fell short of the goal by 40.76 percent and 41.53 percent, respectively.

At the beginning of the fiscal year in July, the government set a Tk 4,30,000 crore revenue generation goal for the NBR for FY24. Later, it was revised downwards to Tk 4,10,000 crore.

The NBR collected Tk 3,31,000 crore last fiscal year. It has missed the government-set goal in the past 12 years.