Tuesday, 26th October, 2021
Tuesday, 26th October, 2021

Revenue deficit of 5,210C despite highest growth in a month

NBR sources said that over the last decade, there has not been such a big jump in revenue collection in a single month like it did in August 2021

After the first month of the current 2021-22 fiscal year (FY), August ended with a revenue shortfall of Tk5,210 crore.

Provisional data of the National Board of Revenue (NBR) shows a growth of 14.55% in th first two months of the current financial year.

In August alone, the total revenue collection has increased by 24.59%.

Data analysis also shows that the NBR collected Tk19,194.65 crore of revenue in August.

It was Tk15,354 crore in July, the first month of 2021-22 FY, and it was Tk5,613 crore short of its target.

In August 2020, the collection was Tk15,406 crore.

Meanwhile, the revenue collection in July-August of the current financial year was Tk34,548.98 crore, which is Tk4,500 crore more than the same period last year.

Last year, the revenue collection during this time was Tk30,160.84 crore.

According to the target, it is still Tk5,210 crore short.

NBR sources said that over the last decade, there has not been such a big jump in revenue collection in a single month like it did in August 2021.

“It is safe to say that last year’s revenue collection was not much due to the Covid-19 pandemic. The deficit was Tk41,118.20 crore. Then, in the first month of the current financial year, there was also a big deficit in revenue collection compared to the target, which usually happens at the beginning of the financial year,” an NBR official said, seeking anonymity.

They said this when asked about the revenue collection growth comparison in July, August and the Covid-19 struck 2020-21 FY.

“The global economic growth increased after economies began to open and it had an impact on our imports and exports growth in August, which led to this large-scale growth,” the official added.

They also said that several recent positive initiatives taken by the NBR brought back the momentum in revenue generation.

Data shows, in the areas of income tax, VAT and customs, NBR has collected Tk5,270.84 crore, Tk7,267.31 crore and Tk6,656.50 crore of revenue respectively.

The total collection in August in the three sectors was Tk19,194.65 crore. Growth was 24.59%.

However, despite this record in revenue collection, it is still lagging behind the target by Tk5,210 crore. In the July-August period, NBR’s target was Tk39,759 crore.

In the current financial year (2021-22), NBR has a huge target of Tk3,30,000 crore.

Last year, the target was the same at the beginning. Later, it was revised to Tk3,01,000 crore.

However, the NBR ended up collecting around Tk2,60,000 crore at the end of the 2020-21 FY.

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