The government has set tax revenue collection target at Tk 1,36,000 crore for the upcoming 2013-2014 fiscal year despite repeated objection from the National Board of Revenue.
At a budget preparatory meeting held at the NBR headquarters on Tuesday, finance minister Abul Maal Abdul Muhith informed the NBR about the government decision on revenue collection target.
Officials of the NBR told New Age that the finance minister informed the revenue board officials that the cabinet, highest decision making body of the government, did not agree with the NBR proposal to slash the target to Tk 1,25,000 crore.
The minister also hinted that tax-free income ceiling for individuals would not be increased from the existing limit of Tk 2 lakh while the corporate tax rate would also remain unchanged in the next budget, they said.
In last month, the NBR wrote separate letters to the government high-ups including prime minister, finance minister and the parliamentary standing committee concerned about the inability of the NBR to achieve the target set by the government at Tk 1,36,000 crore.
The NBR termed the target as unrealistic and unachievable amid the ongoing political unrest, downtrend in macroeconomic situation and global recession and recommended to set it at Tk 1,25,000 crore.
Last week, NBR chairman Ghulam Hussain told reporters at a pre-budget meeting with the Economic Reporters’ Forum that amid the current political unrest and downtrend in macroeconomic situation, it would be impossible for the revenue board to achieve the target set by the government.
Along with political unrest, overall macroeconomic factors are not in favour of higher growth target for revenue collection as export, import and business activities are declining, and value of the dollar is getting depreciated against the taka, he explained.
‘It is up to the government now whether it will impose the huge burden on the NBR or not, but in our part we can say that it is not achievable,’ Ghulam Hussain said.
At the Sixth Five-Year Plan, the government set a revenue target for the NBR at Tk 1,36,000 crore with 21 per cent growth over the previous year.
The finance minister told the NBR that target might be in line with the Sixth Five-Year Plan. The NBR should try hard to achieve the target and time will say whether the NBR can achieve the target.
Officials said that the government thought it should not downsize the target based on some assumption on the future.
Muhith also gave some specific and general instruction on preparing revenue budget for the next fiscal year.
He also hinted to keep some policy support for the share markets in the fiscal year 2013-2014.
NBR chairman Ghulam Hussain, members of the revenue board and other high officials attended the meeting.
-With New Age input
