Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 871 Thu. November 09, 2006  
   
Front Page


Hostile Politics
Revenue shortfall of Tk 5,000cr feared


The overall revenue collection is likely to fall short of Tk 5,000 crore from the target in the current fiscal year (FY) due to political unrest, said Dr Akbar Ali Khan, finance adviser to the caretaker government.

"The expenditure of the fiscal year may increase if the government needs to spend more money to control volatile law and order situation," the adviser told reporters after a meeting with the National Board of Revenue (NBR) at the office of NBR chairman yesterday.

The NBR has a target of earning Tk 41,750 crore in FY 2006-07 with 21 per cent growth over the previous FY but the revenue board could earn only Tk 10,195 crore with a growth of 9.2 per cent in the first four months of the FY.

Khan said the revenue earning situation has deteriorated further as the Supreme Court issued stay order on collecting taxes from subscribers identification module (SIM) card of mobile phone companies and the immediate past government reduced taxes from some essential products to keep prices low.

He said the NBR would face a loss of Tk 7,000 crore to 8,000 crore if the court order goes in favour of the mobile companies.

To curb revenue shortfall, the finance adviser has decided to stop giving duty arrear to different government organisations except the Bangladesh Petroleum Corporation, which has Tk 800 crore due to the NBR.

Different government organisations including Power Development Board, Rural Electrification Board, Water Development Board and the Dhaka City Corporation owe a huge amount of outstanding taxes to the NBR.

He also directed to identify tax dodgers who have taxpayer's identification number (TIN) but do not pay taxes to the government.

"The NBR will issue letters to 11 lakh TIN holders who do not pay taxes," Khan said.

Khan instructed monitoring the situation of those who deduct taxes at source but did not submit the revenue to the NBR.

The smooth monitoring of the income tax department cannot be conducted due to lack of updated computer software, he added.

Asked if he will publish the names of the people and companies who deposited black money to the NBR for excluding them from electoral process, the finance adviser said the existing law does not permit the NBR to publish their names.

It needs change in the income tax law to make public their names, he added.

When asked whether he take any initiative to bring the change in law, the adviser said, "You better ask this question to the law adviser."

The NBR is taking an initiative to automate the whole income tax system so that punitive measures can be taken against tax dodgers in long term, he said.