The government has failed to collect around Tk 1,500 crore in income tax as a total of 7,736 cases have been pending with different courts and tribunals for years.

The National Board of Revenue (NBR) yesterday formed a three-member high-powered committee to review the pending cases and take initiatives to resolve the disputes for quick cash recovery.

The cases remain pending because of stay-orders by courts in favour of the petitioners. The companies and individuals often file writs with the High Court against the verdicts of income tax tribunals or tax commissioners.

Sources said the new move was taken to expedite collection after Finance Minister M Saifur Rahman had recently asked the NBR to increase income tax collection

target by Tk 1,000 crore this fiscal from the original Tk 4,100 crore. The figure was however scaled up by another Tk 100 crore after the coalition government took power in October last.

The committee held its first meeting yesterday and decided that the cases pending with tax commissioners and tribunals, involving over Tk 10 lakh would be disposed of immediately.

The committee also urged the attorney general to expedite the cases pending with the High Court and the Supreme Court.

It would be very difficult to recover the money without cooperation from the attorney general's office, one source said.

A high official of the NBR observed that the government was deprived of huge revenue every year because of income tax exemption to a number of organisations

through Statutory Regulatory Orders (SROs).

These organisations got exempted although they are involved in trades and income generating activities in the name of social work, he said.

A total of 566 cases, involving around Tk 356.52 crore, have been pending with the High Court and the Supreme Court.

On the other hand, Tk 646.60 crore in income tax could not be collected because of 2,438 cases pending before the income tax tribunals.

Moreover, 4,732 cases, involving around Tk 500 crore, have been pending with the income tax commissioners and joint commissioners.

The NBR also started a survey to bring high rise buildings in the metropolitan cities under the income tax net.