DHAKA: “It is difficult to achieve the target of attaining 9.79 per cent tax-GDP ratio in the current fiscal year (FY), 2014-15 due to political uncertainty and poor macro-economic situation, taxmen said here the other day.
After analyzing the relevant indicators of tax-revenue collection, they have found the feasible tax-GDP ratio this fiscal at 8.95 per cent.
They reviewed previous two years’ revenue collection growth to estimate an achievable target for FY 2014-15.
The taxmen feared an aggregate shortfall of around Tk 12 billion in the tax-revenue collection in the current FY. They estimated the maximum aggregate tax-revenue collection at Tk 1.37 trillion against the target of Tk 1.49 trillion.
The National Board of Revenue (NBR) made the forecast at a recent analysis on how to increase the tax-GDP ratio to 14 per cent by FY 2017-18.
As per the analysis, the tax-GDP ratio was 8.94 per cent in FY 2013-14, showing a decline from 9.0 per cent in FY 2011-12.
Tax-GDP ratio is one of the poorest in Bangladesh compared to that of other countries in South Asia. It is 15 per cent in India, 12 per cent in Pakistan, 13 per cent in Sri Lanka, 13 per cent in Nepal, 14 per cent in Bhutan. The ratio is 25 per cent in Vietnam and 18 per cent in China.
NBR chairman Ghulam Hussain said the tax-GDP ratio has declined, as the government has broadened the GDP-baseline.
He said the country has the potential to attain a 20 per cent growth in tax-revenue collection by checking leakage and tapping the sectors, vulnerable to tax evasion.
It has been found that aggregate tax collection growth also declined to 10.67 per cent in FY 2013-14, which was 19.72 per cent in FY 2011-12.
Tax collection growth was 14 per cent in the first five months of the current FY (July-Nov).
