Revenue collection increased 19 percent—a five-year-high—to Tk 185,003 crore in the last fiscal year compared to the previous year thanks to higher imports and VAT collection.

In 2016-17, collection from import duties rose 20 percent year-on-year to Tk 53,330 crore while VAT receipts from local businesses soared 19 percent year-on-year to Tk 66,891 crore.

Income tax collection also rose 17 percent year-on-year to Tk 63,781 crore in 2016-17, according to provisional data released by the National Board of Revenue (NBR).

The efforts of taxmen at the field level made this possible, NBR Chairman Md Nojibur Rahman said at a press briefing at the headquarters of the tax administrator in Dhaka yesterday. At the conference, questions were raised on public sufferings such as waterlogging despite a rise in tax collection. In reply, Rahman said the NBR requested secretaries and heads of various agencies to improve service quality. “Based on our regular contacts with the taxpayers, we can say that the taxpayers will feel more inspired if better services are provided by the agencies under various ministries,” Rahman said in a letter to secretaries on July 1.

The growth in revenue collection enabled the NBR to touch the revised target from the initial goal of Tk 203,152 crore set at the beginning of the last fiscal year.

A slump in revenue from cigarette and telecom operators, a decline in shipments and a slowdown in VAT and income tax collection are to blame for the NBR's failure to reach the expected level of revenue collection in previous years. Income tax collection slowed because of the 14 percent fall in profitability in the banking sector. 

The introduction of waiver on import duty, VAT and income tax for various ministries and projects, particularly for power projects such as Rooppur Nuclear Power Plant in Pabna, are also responsible for the slow revenue collection growth.

The collection would have exceeded the original target if Petrobangla had cleared its dues, the NBR said. Petrobangla owes Tk 22,824 crore to the NBR.

The revenue collection target for the current fiscal year has been set at Tk 248,190 crore, which is 34 percent higher than last fiscal year's preliminary figures.

Rahman, who is also a senior secretary at the Internal Resources Division, said his office has ordered the field offices to hold “Tax Camps” at upazila and union levels throughout the year to increase the tax net.