Revenue target aims high
The government may set the revenue target for the next fiscal year at around Tk 93,000 crore, which, if finalised, will be 17 percent higher than that of the current year, according to a preliminary projection of the finance ministry.
The ambitious target is mainly aimed at coping with the pressure of a big budget -- possibly of Tk 132,000 crore.
The National Board of Revenue (NBR) plans to set up camps at upazila level, involving lawmakers and representatives of the local government in the process to fulfil the target.
NBR officials said more than 1,000 students would be outsourced in a bid to net new taxpayers.
Steps have also been taken to reform VAT, customs and income tax laws and those would be made effective from the next fiscal year. The NBR officials said the steps will help bag additional revenue.
The government may also impose increased tax on beneficiary owner's (BO) accounts, and two to three percent tax in transaction of shares.
However, the government's revenue earning target is Tk 79,461 crore for the current fiscal year, which is 14.86 percent higher than the revised target of the last fiscal year.
The NBR may set its revenue target for the next fiscal year at Tk 72,600 crore -- 19 percent more than in the current fiscal year.
In the current fiscal year the NBR's revenue earning target is Tk 61,000 crore, which is 15 percent higher compared to the last fiscal year.
In the NBR tax, growth in income tax may be 18 percent, in customs 19 percent and in VAT (value added tax) 20 percent, according to the preliminary projection.
The NBR officials said steps should be taken to stop tax evasion and collect additional tax.
The board also plans to get more tax from rich people.
The government is drawing up an ambitious ADP (annual development programme) for the coming fiscal year to meet the lawmakers' demands for development work in their constituencies.
Primary projections put the next ADP at Tk 39,000 crore, 37 percent higher than the revised one for the current fiscal year, planning ministry officials said.
The lawmakers have already submitted hundreds of project proposals to the respective ministries.
They said they need development programmes in their constituencies to make good on the pledges they had made before the last general election.
Big infrastructure projects including Padma Bridge and increasing power generation have put a huge pressure on development budget, which would lead to a bigger budget next year.
A finance ministry official said the demand could not be met without additional revenue income. The official, however, termed the target realistic.
He said tax-GDP (gross domestic product) ratio is still much lower in Bangladesh compared to the neighbouring countries.
However an NBR high official said the government should prevent political interference and corruption by tax collectors to help ensure more tax collection.