Tax collection growth slows

Tax collection growth slowed in April on the back of a decline in income tax receipts for the first time since fiscal 2007-08.

Revenue receipts rose 6 percent year-on-year to Tk 12,039 crore during the month, according to data from the National Board of Revenue.

But income tax collection fell 8.54 percent from a year earlier to Tk 3,664 crore.

"We did not go slack in our collection efforts," said a senior tax official, adding that income tax receipts declined for a delayed effect of the political turbulence that prevailed from January through to March.

Some said inflated collection data was shown in the past and the decline was seen this time because of the counting of actual receipts by the state coffers.

The NBR official admitted that there is a discrepancy in the tax collection data of the NBR's and the Office of the Controller General of Accounts.

The mismatch is there in the absence of full automation, according to the official. "Such problems would be over after full automation."

Receipts from VAT and supplementary duties from local businesses and industries rose slightly, while collection growth at the import stage slowed down.

Overall, the NBR's collection rose 15.3 percent year-on-year to Tk 104,769 crore in the first ten months of the fiscal year. The taxmen now need to collect an additional Tk 30,258 crore in the remaining two months to meet the revised target of Tk 135,028 crore for fiscal 2014-15.