Corporate income tax collection from banks and large companies fell by 15.38 per cent or Tk 2,147 crore short of the target set for July-January period of the current financial year 2022-23, according to National Board of Revenue data.  

Large Taxpayer Unit (income tax) of the NBR collected a total of Tk 11,809 crore against the target of Tk 13,956 crore set for the period.

However, year-on-year income tax revenue earnings from large businesses increased by 7.05 per cent or Tk 833 crore during the period.

LTU collected Tk 10,976 crore in the seven months of the previous financial year 2021-22.

The overall income tax collection during the period has increased by 6.49 per cent year-on-year.

NBR direct tax collection stood at Tk 53,261 crore during the seven months of the current financial year, which was Tk 50,014 crore for the same period of the previous financial year.

The LTU under income-tax wing of the NBR has to collect Tk 16,691 crore or 58.56 per cent to meet the full year’s target of Tk 28,500 crore in the remaining months of the ongoing financial year.

Tax officials said that LTU contribution on direct tax was around 30 per cent annually.

They observed that corporate tax collection experienced ups and downs every alternate year following income of the large taxpayers.

They hoped, however, that the pace of corporate-tax collection would be geared up in the remaining months as over 50 per cent of revenue came from tax deduction at source.

LTU commissioner Md Iqbal Hossain said, ‘The collection of corporate tax would go up in the rest of the period as the unit has taken a number of steps to raise collection.’

A number of factors helped the unit achieve higher growth in the last financial year, including collection of arrears, leftover taxes of previous years and money-whitening scheme, which are not available this financial year.

To address the revenue-collection challenges this year, a number of steps has been taken, including monitoring advance tax collection by holding meetings with large banks, intensifying collection of arrear taxes, monitoring proper depositing of tax deducted at source, resolving pending court cases and others, he added.  

The LTU collected taxes worth Tk 24,200 crore against the target of Tk 27,500 in FY 21-22, Tk 24,168 crore against that of Tk 24,000 crore in FY 20-21 and Tk 20,838 crore against that of Tk 26,800 crore in FY 19-20.