The New Nation - Internet Edition

Staff Reporter

The National Board of Revenue (NBR) has realised 25.71 per cent higher revenue during July-January period of fiscal year 2007-08 compared to the previous year, NBR chairman Muhammad Abdul Mazid told newsmen yesterday.

The growth rate was 22 per cent during the first half of the current fiscal year (July -December).

"The high growth of revenue realisation is due to legalisation of undeclared money by a good number of people," Mazid said expressing hope of continuation of revenue earning growth.

The provision of legalising undeclared money through paying a certain percentage of tax will also remain in the future also, he said replying to a question.

According to Mazid the NBR officials have realised Tk 23,588.25 crore against the target of Tk 22,508.56 crore during the July- January period, which is 25.17 per cent higher than the same period of the previous year.

For the period the growth rate on import duty was 20.99 per cent, for Value Added Tax (VAT) 20.97 per cent, for income tax 41.56 per cent and for others the growth is 63.55 per cent.

The NBR chairman said his office will prefer to expand income tax net to increase revenue earnings as it may have to lift import duties on different goods to help reduce price of essential commodities.

Mazid said the budget of fiscal 2008-09 will favour labour intensive industrialisation to free the country from dependence on trading.

To this end small and medium scale industries enterprises will be patronised so that the country get scope to depend on small industries for revenue earning if the big industries fall in trouble.

"The next budget will be participatory of all stakeholders. To this end sector wise pre-budget discussion will be start from March 3. NBR will also have discussion meetings in six divisions where finance adviser will be attending," he said.

The revenue boss said NBR has already sought proposals from 300 organisations but so far received from 70, which will be scrutinised by February. This year NBR will convene discussion meeting on 22 sectors. A consultative meeting will be held in mid April to prepare draft budget, he added.

Mazid said NBR has already started a drive to motivate people to become taxpayers for boosting government revenue earnings. "From the 1st July electronics cash register system will be introduced to realise more Value Added Tax."

The government has already issued rules for freight forward business to bring them under government control and ensure their transparency and accountability, he said.