The revenue collection has picked up at the beginning of the fiscal year, which saw a 15.38 percent growth in revenue collection in July on a year-on-year basis.
Among the three sectors under the National Board of Revenue, the VAT Division has been able to make 21.51 percent growth, which is the highest in these 3 divisions-VAT, customs, and income tax.
The Customs Division’s revenue earning has grown by 13.70 percent and Income Tax by 9.65 percent. On the other hand, VAT Division’s revenue earning has increased by 21.51 percent in July on a year-on-year basis.
The VAT collection grew by 10.58 percent during the same period of Fiscal Year 2023.
According to the NBR, the VAT collected in July is Tk7,654 crore. In July last year, this amount was Tk 6,299 crore. Tk 1,355 crore was collected more in the current fiscal year.
LTU VAT Commissionerate is at the top in VAT collection in July. The total collection of LTU is Tk 3,561 crore, which is Tk 860 crore more than before. The growth of this commissioner is 31.86 percent, which is a record for VAT collection in recent times.
Besides, Cumilla, Sylhet, Khulna, Rajshahi, Chattogram, Dhaka East, Dhaka South, Rangpur, and Jashore Commissionerate have done relatively well in July of the current financial year. All of them have double-digit growth.
The highest VAT collection in the month of July was in the cigarette sector. The total collection in this sector was Tk1,211 crore, which is 25.92 percent higher than earlier. Other major sectors also have done well.
Growth has also been noticeable in the effort-dependent sector. The collection in this sector is 27.52%. On the other hand, VAT has come from the deduction at the source category of 12.68 percent.
In this regard, it is noteworthy that the VAT collection of sweet shops has increased by 28 percent. In the budget of the current financial year, the VAT in the sweet sector has been reduced from 15 percent to 7.5 percent. Despite this, the VAT collection in this sector has not decreased but has increased.
This information on the effort sector means that the activity and supervision of the field-level VAT officers have increased comparatively. A realistic strategy has been laid down by identifying various potential sectors.
VAT Division officials expect that this high growth rate of VAT collection in July this year will continue.
It is noted that despite various challenges in the economy, the VAT division has seen the highest growth of 16% in the last fiscal year 2022-2023.
