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Govt sets Tk 78,200cr revenue goal

Rejaul Karim Byron
The revenue-earning target in the next fiscal year (FY) is likely to be around Tk 78,200 crore and a number of measures will be taken to achieve the target.
However, in the wake of the global recession, the government is going to fix a slim target for the National Board of Revenue (NBR) in revenue collection--only 13 per cent increase over the current fiscal year's target.
Sources said the government will take measures like reducing the number of items (goods) that now enjoy tax and duty exemption, increasing court and transport fees, setting up tax offices up to upazila level and giving opportunity to whiten black money in the next FY.
The revenue-earning target was 21 per cent higher in the current FY (2008-09) than the last FYs (2007-08) original target and 15 per cent higher than the target in the revised budget of lastFY.
Of the total Tk 78,200 crore revenue-earning target in the next FY, NBR's collection target may be Tk 61,000 crore which is Tk 54,500 crore in the current FY. However, the total revenue-earning target for the current fiscal year is Tk 69,382 crore.
The target for NBR in the next budget is 12 per cent higher than its target in the current FY. However, in the current FY, the NBR was given a target of around 24 per cent higher than the previous fiscal year’s original target.
NBR sources said the target for the current FY is big and it would not be achieved. Till March, they were running a deficit of Tk 2,500 to 3,000 crore compared to its target in this period.
Finance ministry sources said they might slash the NBR's revenue collection target by Tk 1,500 crore and fix it at Tk 53,000 crore. For this reason, they set the revenue-earning target of NBR at Tk 62,000 crore for the next FY. But now they have cut it down.
Sources said the NBR is going to take different steps to fulfil the revenue-earning target. At present, 57 items enjoy tax and duty exemption while the number of items may be brought down to 30 in the next FY.
Different court and transport fees would be increased. As there is a possibility of import tax going down drastically due to global recession, emphasis will be laid on VAT and income tax. VAT net would be expanded. However, NBR is still review- ing in which sectors the fees, tax and duties would be increased.
Setting up NBR offices at upazila level may be considered to collect VAT and income tax from the upazila levels.
The finance minister while announcing the recession package said the revenue administration infrastructure would be expanded to upazila level in phases so that people can be benefitted from it.
Besides, the government will bring massive changes in Income Tax Act, VAT Act and Customs Act to increase tax collection.
Scopes for whitening black money would be given by paying taxes. NBR sources said it would make a positive impact on tax collection, as many persons will avail the chance from home and abroad. The NBR thinks about imposing more than 10 per cent tax on black money.