Taxman's purse takes a hit

SUSTAINED political agitation over the last quarter has hit National Board Revenue (NBR)'s collections particularly hard. With tax collection falling short by more than Tk8,500 cr, the ministry of finance is being forced to revise the annual revenue collection for the current fiscal. With economic activities grinding to near-halt due to the volatility in politics that has seen disruption in the supply chain, productive sectors across the board have seen drastic reduction in business generation. Needless to say, with revenue collection down, the government will be hard put to meet its expenditures. Going after taxpayers with a stick is not going to bear desired results.
The recently concluded national election has brought some respite from the strikes and blockades. It will however take time for lost business to pick up. Going by newspaper reports revenue collection fell short by Tk3,500cr. in the month of December. Most of NBR wings could not meet their respective targets. Value added Taxes or VAT collection fell as sales took a dip and with people struggling to make ends meet during these times of economic hardship, income tax returns have also slowed. Ultimately, what all this boils down to is that a long term solution has to be found whereby the major political alliances can learn to live in peace with one another. Without that, the culture of violence will remain and economic activity may gradually grind to a halt.