The National Board of Revenue has estimated it would generate an additional Tk 11,000 crore in value-added tax through budgetary measures in the coming fiscal year 2020-2021.

The additional revenue will come mainly from changes in the value added tax and supplementary duty structure for, among others, tobacco products, mobile telephone uses, excise duty on bank balance and motorcycle industries.

The NBR’s VAT wing has increased SD on tobacco products, mobile uses and some luxury products and services while increasing the excise duty on bank balance, debit or credit, above Tk 10 lakh.

Motorcycle production and assembling have also come under the 15 per cent VAT regime as the NBR did not extend the VAT exemption facility for the sector which had been enjoying the benefit since 2010.

According to the provisional estimate of the revenue board, it may generate around Tk 1,500 crore due to the hike in SD on mobile users to 15 per cent from the previous rate of 10 per cent in the budget.

The NBR received Tk 6,700 crore in VAT and SD from mobile users in the fiscal year 2018-2019.

Officials said that the VAT wing, however, expected the highest Tk 8,000 crore in additional revenues from the tobacco sector because of the increase in SD and price slabs of tobacco products, including cigarette, biri and zarda.

In FY2019, the NBR received Tk 27,000 crore from the sector.

The revenue board may get an extra Tk 900 crore because of withdrawal of the VAT exemption facility on motorcycle production and the assembling sector in the budget.

The VAT benefit for the motorcycle industries given in 2010 would expire on June, 30, 2020.

Finance minister AHM Mustafa Kamal did not extend the benefit in the Finance Bill 2020 as the sector has already managed to develop their capacity utilising the exemption.

Hike in the excise duty on bank balances worth above Tk 10 lakh, irrespective of debit or credit balances, is also expected to bring an extra Tk 300 crore for the tax administration.

The revenue board got Tk 1,300 crore in excise duty in the last fiscal year.

It will also get a handsome amount of revenue following the increase in SD on cosmetics to 10 per cent from the previous 5 per cent and Bangladesh Road Transport Authority services to 15 per cent from 10 per cent and imposition of 10 per cent SD on ceramic sink and related products.

Other budgetary measures that may bring in additional revenue include the increase in payable disputed VAT to 20 per cent from 10 per cent for making appeal, increased VAT on air-conditioned launch service, increased SD on chartered helicopter services and imposition of VAT on some imported items.

The government has given a Tk 3.30 lakh crore revenue collection target to the NBR.

Of the given target, the NBR has set the highest target of Tk 1,28,873 crore for the VAT wing followed by Tk 1,05,475 crore for the income tax and Tk 95,652 crore for the customs wing.