Monday, April 22, 2019 | ePaper
Big shots swallow half of govt. revenues
In FY 2014-15, as reported in the leading business daily, the NBR granted tax exemptions of Tk 210.70 billion on the import stage, which doubled in FY 2017-18. Until last January, the NBR granted some Tk 271.08 billion as tax exemptions to various sectors. It doesn't need to be an expert to say that such tax exemption is one of the major reasons for the failure in achieving the revenue collection target. The amount of revenue loss would go up significantly by the end of this fiscal following a substantial number of exemptions granted ahead of the last national elections.
The causes of tax exemption could be understood when we see lawmakers availed the duty-free benefit on car import of worth Tk 15.94 billion in the last four years and Tk 889 million until January of this fiscal. The NBR granted different special tax waivers valued at Tk 126.53 billion in different forms in the July-January period of this fiscal. To lure investment in the country's economic zones, the government offered Tk 3.82 billion tax exemptions until January of the current fiscal, which was Tk 3.64 billion last year.
We think tax exemption to some thriving sectors to some extent would be advantageous for them. But in most times, these facilities are misused by the vested quarters. It is not understandable, why lawmakers would be given facilities to import latest model luxury cars without any duty. Here, tax exemption is totally unproductive.