NBR sets a formidable revenue target in 2016-17 budget

The National Board of Revenue (NBR) will have to raise Tk 240 million every hour to meet the budgetary target in 2016-17 financial year, says its chairman Md Nojibur Rahman.

Speaking at a discussion in Dhaka's Institution of Diploma Engineers, he said the revenue target set in the forthcoming 2016-17 budget would be to the tune of Tk 170 billion a month or around Tk 5.6 billion a day.

The revenue target was fixed at Tk 1,760 billion for the current 2015-16 FY budget.

Out of it, Tk 682.63 billion or 36.5 percent of the total target was to be mobilised from Value Added Tax (VAT) alone.

Finance Minister AMA Muhith is upset over an estimated 10 percent shortfall in the revenue collection during this FY.

The government has devised different plans to augment revenue earning.

It hopes the revenue earning from VAT will increase substantially after the enforcement of the new VAT law from July 1, though businessmen are opposing the law.

At the discussion, titled ‘The Value Added Tax and Supplementary Duty Act, 2012’, the NBR chief said, “It (2016-17) is a huge budget, which will play a key role in implementing the visions 2021 and 2041.”

He urged revenue officers to change their mindset to achieve the budgetary targets.

“We need to change ourselves for achieving the targets set in this budget. We want to be pro-people and business-friendly. We need to be alert to ensure that no one face harassment (while paying taxes),” he said.

Referring to businessmen, Rahman said, “They do not want to spend Tk 3 to pay a tax of Tk 1.”

“However, the extent of harassment will lessen substantially after the enforcement of the VAT law,” he said.

Civil Aviation and Tourism Minister Rashed Khan Menon, who attended the workshop as the chief guest, urged the NBR to be more service-oriented.