VAT collection witnesses 17% growth in FY23

The revenue collection by the National Board of Revenue (NBR) from VAT witnessed a 17 per cent growth in the last fiscal year (FY23) fetching Tk 1,25,424 crore.

The revenue collection from VAT by the revenue board in the previous fiscal year (FY22) was Tk 1,08,420 crore. In that consideration, the revenue collection from VAT in FY23 was Tk 17,004 crore higher than the previous FY22.

According to a press release of the NBR, the VAT Commissionerates of Chattogram, Khulna and Dhaka South attained higher growth in revenue collection in the last fiscal year out of its 12 VAT Commissionerates witnessing 38.71 per cent, 24.71 per cent, and 19.89 per cent growth respectively.

The NBR data revealed that the LTU VAT Commissionerate collected the highest amount of Tk 58,566 crore as VAT in the last fiscal which was Tk 6,133 crore or 11.70 per cent higher than the previous fiscal year.

Talking to BSS, a senior official of the NBR said that the overall collection of VAT in the last fiscal year was a bit less than the expectations due to the current global economic condition and the austerity measures of the government.

Otherwise, the VAT collection could have been higher, he said adding that the overall VAT collection could be termed as a 'good achievement.'

The official said that the VAT collection in the last fiscal year (FY23) witnessed 17 per cent growth mainly for three reasons which are strict monitoring of VAT collection at the field level, updating the production-related materials of the business enterprises and taking effective measures for evading VAT.

The NBR data also showed that the highest amount of Tk 32,818 crore came as VAT from cigarettes and tobacco products in the last fiscal year (FY23) with a 10 per cent growth followed by Tk 9,438 crore as VAT from the mobile phone operators with 11 per cent growth.

Besides, the other sectors which achieved notable growth in VAT collection in the last fiscal are MS rod with 58.46 per cent growth, soft drinks with 31.19 per cent growth, cement with 33.72 per cent growth, commercial space rent with 20.11 per cent growth, petroleum gas with 21.68 per cent growth, petroleum products with 23.43 per cent growth, sweetmeat shops with 38 per cent growth, residential hotels with 39 per cent growth and restaurants with 16.78 per cent growth.

The revenue collection target from VAT in the last fiscal year (FY23) was Tk 1,36,800 crore.