Income tax collection from large taxpayers grows 15% in FY21

Income tax collection from large taxpayer companies increased by over 15% to Tk24,011 crore year-on-year in the just-concluded fiscal year 2020-21 even with economic activities not getting the expected pace at this pandemic time, according to the Large Taxpayers Unit (LTU) of the National Board of Revenue (NBR).

In FY20, the collection amounted to Tk20,838 crore.

Besides, the revised target of Tk24,000 crore has also been achieved during FY21. The initial target to collect income tax from large taxpayers was Tk24,500 crore. 

Tax collection officials say the tax collection has increased as they intensified their monitoring activities even in the pandemic situation. 

Talking to The Business Standard, LTU Commissioner Md Iqbal Hossain attributed the success in tax collection to renewed demand in the economy and improved relations with taxpayer companies. 

LTU's tax collection increased by 19.60% in FY20, by around 6% in FY19, by 10% in FY18, 2% in FY17 and less than 1% in FY16, an analysis of tax collection statistics from the NBR's large taxpayers shows.

Relatively large taxpayer companies pay taxes through the LTU. There are currently 418 companies that pay taxes under the LTU.  The list includes mobile phone companies, banks, insurance companies, and non-bank financial institutions, pharmaceutical companies, and cement, ceramics and other large companies. About 29% of the revenue collected comes through this unit.

Former NBR chairman Muhammad Abdul Mazid told TBS that even in this pandemic situation, a 15% growth in income tax collection from large taxpayers is positive. Although the income of individual taxpayers has decreased, businesses of big companies under the LTU have not been affected much. 

The NBR's initiative to bring them into compliance has also played a part in achieving relatively good growth, he added.

According to NBR data, in FY20, the LTU contributed Tk20,838 crore to the aggregate income tax collection of Tk73,004 crore. In the just-concluded financial year, the target to collect the total income tax had been fixed at Tk97,000 crore.