How NBR wants to collect additional 12 thousand crores of VAT

Finance Minister Abul Hasan Mahmud Ali has presented the proposed budget of Tk. The proposed budget presented on Thursday (June 6) has a revenue collection target of Tk 541,000 crore.

Among the proposed revenue targets, NBR’s target is Tk 4 lakh 80 thousand crores. Out of this, 1 lakh 77 thousand 600 crores have been caught in the VAT and income tax sector. Besides, the target of revenue collection from customs duty has been fixed at 1 lakh 24 thousand 800 crores. A large part of the target will come from Value Added Tax or VAT.

NBR has planned to meet the target of additional VAT collection by increasing VAT in 20 sectors in the coming financial year. Through this, an additional 12 thousand crores of VAT will be collected.

Supplementary duty has been increased at all levels of cigarettes in the proposed budget. Through this, an additional VAT of 6 thousand crore rupees will come. Supplementary duty has been fixed at 65.5 percent on three tiers of cigarettes. Supplementary duty has also been increased against mobile phones and services. Additional VAT will come from the sale of mobile phone talk time and SIM 1 thousand 800 crores. VAT exemption facility for domestic ACs and refrigerators has been cancelled. As a result, VAT of Tk 400 crore will come from this sector.

In the upcoming fiscal year’s budget, VAT on soft drinks, carbonated beverages, energy drinks, amsattva has been increased from 5 percent to 10 percent. An additional 200 crore rupees will come from these. The duty on ice cream is increasing, from which 50 crores will come. Besides, it has been proposed to increase the VAT of construction material bricks from 10 to 20 percent. 50 crores will come from this sector. 15 percent VAT has been levied on 11 such items including tour operators, amusement parks and theme parks, security services, lottery ticket selling services. An additional 200 crore rupees will come from these. Taxes have been increased at different levels of excise duty on bank deposits. 2 thousand crores will come from there. In this way, NBR has made a table of additional VAT collection of around 12 thousand crore taka. Besides, it is being considered to collect a large amount of VAT from Metrorail.

The VAT department believes that the target of VAT collection of Tk 1 lakh 77 thousand 600 crore will be met in the next financial year through these initiatives. In the proposed budget of the current financial year, the NBR revenue collection target was set at Tk 4 lakh 30 thousand crores. Out of which 1 lakh 59 thousand 100 crore taka is determined from Musak, 1 lakh 54 thousand 800 crore taka from income tax and 1 lakh 16 thousand 100 crore taka from import-export duty.

However, the target was revised at the end of the current financial year. The new target of revenue collection is Tk 4 lakh 10 thousand crores. Out of which the target of VAT collection is 1 lakh 51 thousand 700 crores. Besides, there is a target of collecting 1 lakh 10 thousand 700 crores from import-export customs sector and 1 lakh 47 thousand 600 crores from income tax.

According to the latest statistics, 82 thousand 522 crore 28 lakh taka have been collected in import and export duty in 10 months of the current financial year. Apart from this, 1 lakh 13 thousand 709 crore 81 lakh has been collected in the value added tax or VAT sector and 93 thousand 145 crore 13 lakh has been collected from income tax.