Govt takes aim at raising non-tax receipts

The interim government of Bangladesh yesterday issued a policy with the aim of raising non-tax receipts as revenue mobilisation in the country remains poor.
A circular issued by the finance ministry directed all non-NBR tax receipt collection agencies to submit a report every year on the rates or fees they charge.
The Finance Division will review the reports each October to determine if the rates and fees should be increased, decreased or remain unchanged, according to the circular.
Revenue collection from non-tax sources includes levies for owning land or vehicles as well as stamp duty and surcharges, deductions on dividends, profit and interest payments, and administrative charges.
The move comes at a time when the country’s tax collection as a percentage of its gross domestic product (GDP) is among the lowest worldwide, constantly squeezing the government’s fiscal space.
Against a target of about Tk 5 lakh crore, the government managed to collect revenue of just Tk 4.08 lakh crore from both tax and non-tax sources in fiscal 2023-24.
Non-tax receipts increased to Tk 47,121 crore that year, up from Tk 46,934 crore previously.
The finance ministry also said they will set rational targets for tax and non-tax collection based on the capacity of the ministries or agencies concerned.
Furthermore, the authorities concerned will update the rates or fees every three years or whenever required, considering changes in the cost of living, services, inflation and so on, it added.