In the last 2 months, there has been a decline in revenue due to chaos and administrative stagnation in the financial sector. The National Board of Revenue (NBR) collected Tk 13,510 crore less than the target in the first two months of the fiscal year (July-August).
Although the government of the day imposed a curfew throughout July to quell student protests, businesses were virtually shut down. And after the interim government assumed power in August, administrative chaos reached its peak. Alleging discrimination in the job, the officers and employees of different levels started the movement. All in all, the situation in the revenue administration is chaotic. Intelligence report is sought for promotion to the post of Joint and Additional Commissioner in Income Tax and Customs cadre.
On the other hand, although the officers and employees have been appointed and transferred in the new tax zones, many of the appointed officers and employees are working at home due to the lack of logistics and the taxpayers’ files have not been transferred to the new circle.
Analyzing the received data, it has been found that in the first 2 months of the current financial year (July-August), the total revenue collected under NBR is about 44 thousand 123 crores, which is 4.54 percent less than the same period of the last financial year. 46 thousand 222 crores were collected in the first two months of the last financial year. The target of collection in the first 2 months of the current financial year was Tk 57 thousand 175 crore 59 lakh. Income tax collection has also decreased. During the discussion period, the collection is less than the target by 7 thousand 219 crores
Next is VAT collection at the local level. About 10 percent less VAT has been collected compared to the same period last year. Due to the stagnation after the curfew in July and the fall of the Awami League government in August, VAT collection has decreased – this is what the stakeholders think. Even if the target is not met, the import duty sector is in a relatively good position. Compared to last year, the growth in this sector has been 1.80 percent.
In the fiscal year 2024-25, the revenue target has been set at 4 lakh 80 thousand crores, which is 11.63 percent more than the previous fiscal year. Among them, the target of collection in the income tax sector is Tk 1 lakh 77 thousand 599 crore, VAT sector is Tk 1 lakh 77 thousand 600 crore and import duty is Tk 1 lakh 24 thousand 800 crore.
NBR officials say the political unrest has damaged the business environment. In addition to the closure of industries and businesses, there is instability in business. Because of that the production and export sector has been affected. Due to these reasons, the revenue collection for the first two months of the current financial year has decreased.
They feel that revenue targets can be achieved if discipline is brought back in the financial sector during the rest of the fiscal year. Moreover, earlier NBR officials used to inflate the revenue collection data to show their performance to please the political government. Due to which at the end of the financial year, the discrepancy would appear as final. Now the revenue being collected is being coordinated with the final accounting system of the government and the information is being prepared.
That is, there is no opportunity to show more collection in this accounting system. In this regard, NBR Chairman Abdur Rahman Khan told Jugantar that the revenue collection is very normal. Because there was a mass coup-revolution in July-August. Business was closed at that time. This time there was no growth, but the realization was close to the previous year. NBR is working with utmost importance to increase the revenue income.
There is dissatisfaction in the revenue administration: Abdur Rahman Khan was appointed as the new chairman of NBR on August 15. By joining the workplace, he is the outgoing chairman Abu Hena. At the time of Rahmatul Munim, the deprived officials and employees faced demands. Starting from the night watchmen working in the field, the cadre officers also made various demands to him including promotion. He tried to remedy the situation by promoting the underprivileged to the Income Tax and Customs cadres.
Talking to the field level officials, it is said that intelligence reports have been sought in an unprecedented manner in the case of promotion to the post of joint and additional commissioners. There is dissatisfaction at the field level. In the past no intelligence report was ever sought for promotion to this post. There is dissatisfaction among revenue officers awaiting promotion as no such intelligence report is sought for promotion of Deputy Secretary and Joint Secretary of Admin cadre.
Moreover, important offices like the Dhaka North Bond Commissionerate of Customs have been vacant for a long time. After Commissioner Azizur Rahman was promoted and made a member on September 17, no one was given additional responsibility in this office. As a result, daily operations of large garment and export-oriented organizations are being disrupted. Bond Commissionerate provides import credit to garment and export oriented companies. The Directorate of VAT Intelligence Investigation, which is responsible for preventing VAT evasion, is also vacant.
On the other hand, the situation in the income tax sector is also chaotic. Even though officers have been posted in the new tax zones, they are unable to manage the activities due to lack of office and logistics. Officers are spending time gossiping at home or in other colleagues’ offices. Not only that, many tax zones do not have payroll codes. By this, these officials are also worried about the salary. Although the files of officials in the new tax zones are expected to arrive in October, these departments have yet to start operations. No one can say when the file will arrive. November 30 is the last day to file income tax returns for individual taxpayers. Taxpayers of the new tax zones are expected to be in some trouble in view of the announcement that they will not be able to get tax rebates if they submit their returns.
Field-level income tax officials say that in the changing situation, a fearful atmosphere is working everywhere. No one wants to do normal work for fear of corruption allegations and harassment. NBR has done away with audits at the individual level and the scope of work has become smaller. The audit of the company is also almost closed. Overall which has an impact on revenue collection.
In this regard, Chairman Abdur Rahman Khan said that office rent has already been taken to make the new tax zones functional. They will be made functional by October. Online return filing system has been introduced to avoid inconvenience to taxpayers. We encourage taxpayers to file returns online. Still if one wants to physically file the return, then they can file the return in the previous circle, as long as the file is not being transferred. NBR will soon issue a directive in this regard.