Govt to realize revenue collection target in next budget: Kamal

Finance Minister AHM Mustafa Kamal today said that the government would remain very active to realize the revenue collection target in the next budget with support from the taxpayers.

“If the goal is big, then the effort towards attaining it also remains big. The government is moving forward keeping that in mind,” he said.

The finance minister said this when a delegation of the International Monetary Fund (IMF), led by IMF mission chief Askel Sorensen, met him at his Economic Relations Division (ERD) office today, said a ministry press release.

Reiterating that the new VAT law would come into effect from 1st of July, he said that there would be tolerable multiple rates in the new VAT law instead of the single rate while the consumers would not need to pay any VAT on essential items.

Kamal informed that the use of Electronic Fiscal Device (EFD) would be made mandatory to check VAT evasion under the new law while the procurement process of EFD is under process at the NBR.

He also informed that necessary manpower would be recruited at the NBR for the use of EFD.

Mentioning that that the GDP growth rate over the last 10 years crossed 7 percent despite global recession with the latest 7.86 percent in the last fiscal year (FY18), the finance minister reiterated that the GDP growth rate in the current fiscal year would reach 8.11 to 8.25 percent.

He said that almost every nation across the globe depends on VAT for their overall economic prosperity while VAT is the main driving force towards revenue collection.

IMF mission chief lauded highly the initiatives of the finance minister towards reforming the revenue sector saying that the IMF and the NBR would work together in this regard.