Amid inflation and soaring prices, the burden of plight on the people may worsen as the upcoming fiscal year imposes an additional Tk66,000 crore in taxes.
Finance Minister Abul Hasan Mahmood Ali has set a target of collecting Tk4,95,000 crore in taxes for the 2024-25 fiscal year.
This marks a significant increase from the revised budget of the current fiscal year, which set the tax collection target at Tk4,29,000 crore, counting for a 15.38% increase.
An analysis of the current fiscal year's budget shows, against an original target of Tk4,50,000 crore, a total of Tk3,17,229 crore, or 70.50%, has been collected up to April.
Due to lower-than-expected collections, the target for the current year was reduced by 4.67%.
The National Board of Revenue (NBR) will be responsible for collecting the largest portion of the government's revenue, with a target of Tk4,80,000 crore.
This represents an increase of over 17% compared to the revised budget of the current fiscal year, where the NBR's target was Tk4,10,000 crore, down from an original target of Tk4,30,000 crore.
The new fiscal year's target for NBR is increasing by Tk50,000 crore or 11.63%.
To manage various crises, the budget size for the next fiscal year is increasing by only Tk35,215 crore or 4.62%.
Compared to the revised budget, the growth rate of the budget is 11.56%.
Despite this, the government is increasing taxes at a rate several times higher than the growth rate of the budget size.
In other sectors, tax collection targets for various organisations outside NBR are being reduced by approximately 25%, aiming to collect Tk15,000 crore.
Although this sector was allocated Tk20,000 crore in the original budget, it was revised down to Tk19,000 crore.
Revenue collection from other non-tax sectors is also being reduced, with the target for the next fiscal year set at Tk46,000 crore, down by Tk4,000 crore or 8%.
To increase revenue, the new fiscal year will see a significant expansion of the tax net.
E-payment or e-challan will be mandatory for VAT payments of Tk10 lakh or more, down from the current threshold of Tk50 lakh.
Additionally, the Electronic Tax Deduction at Source (eTDS) online platform will be launched, efficiency in revenue management will be increased, service quality will be improved, and the Income Tax Act-2023 will be enforced.
The NBR plans to install EFD (Electronic Fiscal Device) machines in various institutions through a contract with a private company, targeting many potential taxpayers in Dhaka and Chattogram who currently do not pay income tax.
Coordination with BRTA, city corporations, and DPDC is also planned to bring new taxpayers into the tax net.
