Bank-Insurance
Revenue Collection in FY23 Grows by 8% yet Misses Target by Tk 44,000cr
Despite an 8.12% growth in revenue generation compared to the previous fiscal year, the National Board of Revenue (NBR) of Bangladesh fell short by Tk 44,000 crore in achieving its revenue target for the fiscal year 2022-23. However, there is a possibility of reducing the deficit as the final calculation of value-added tax (VAT) is yet to be completed. The deadline for VAT returns submission is July 15, and NBR officials anticipate a significant accumulation of funds during this period.
For the fiscal year 2022-23, the revenue collection target was set at Tk 3.70 lakh crore. According to the provisional account of the NBR, revenue amounting to Tk 3.25 lakh crore has been collected, resulting in a shortfall of approximately Tk 44,000 crore.
The import-export sector, including customs, contributed around Tk 91,717 crore, falling short of the target of Tk 1.11 lakh crore by about Tk 19,283 crore, with a growth rate of 2.56%.
Conversely, the VAT sector achieved the highest growth rate of 11.5%, collecting Tk 1.20 lakh crore against the target of Tk 1.37 lakh crore.
In the income tax sector, Tk 1.12 lakh crore was collected against a target of Tk 1.22 lakh crore, showing a growth rate of 9.62%.
In the previous fiscal year, FY22, the revenue deficit stood at Tk 28,000 crore, with a total revenue collection of Tk 3.852 lakh crore.
A senior NBR official stated that 87.91% of the revenue collection target was achieved across the three categories of NBR in FY23.
For the current fiscal year 2023-24, the revenue collection target has been set at Tk 4.30 lakh crore.
In light of the current situation, Bangladesh Bank has mandated that all banks and financial institutions refrain from charging additional fees for late payments of credit card bills and loan installments.
The central bank issued this directive through two separate notifications on Wednesday, providing a significant relief measure to the financially burdened.
Borrowers and credit card holders who were required to make payments during the curfew and public holidays now have until July 31 to settle their dues. Bangladesh Bank has explicitly stated that banks and financial institutions are prohibited from imposing any extra interest, penalties, or late fees for installments or credit card bills due between July 18 and 25. Furthermore, no savings schemes shall be canceled for non-payment of installments during this period.
The central bank’s notification acknowledges that many borrowers and credit card users have struggled to meet their payment deadlines due to the prevailing circumstances.
Additionally, numerous depositors have been unable to make timely deposits into various savings schemes, including the Deposit Pension Scheme (DPS). To address these challenges, the new guidelines will be in effect from July 18 to 25, covering dues on loans, credit card bills, and savings scheme installments.
According to the directive, if the outstanding loan and credit card payments are settled by July 31, any accrued interest, penalty interest, additional interest, excess profit, or late fees will be waived. Similarly, if savings scheme installments are paid by July 31, no late fees or penalties will be imposed.
Moreover, any interest, penalty, or late fee already collected on loans, credit cards, or savings schemes must be refunded or adjusted, as per the Bangladesh Bank directive.
The Bangladesh Bank (BB) has announced an extension for the payment period against imports of industrial raw materials from 180 to 360 days, a measure now set to remain in place until December 2024. This policy, initially scheduled to end in June of this year, has been prolonged to facilitate trade transactions, according to a BB circular issued today.
“To support trade transactions, it has been decided to extend the policy support until December 31, 2024. The extended usance period will not apply to imports under EDF loans, as previously stipulated. All other relevant instructions remain unchanged,” the circular stated.
To ensure timely payment of salaries and bonuses to garment industry workers before Eid-ul-Azha, the branches of banks in key industrial areas will remain open on a limited basis on June 14, 15, and 16.
The Bangladesh Bank (BB) issued a notification stating that bank branches in Dhaka metropolitan, Ashulia, Tongi, Gazipur, Savar, Bhaluka, and Narayanganj will operate on these days to facilitate financial transactions for garment sector employees.
Typically, Friday and Saturday (June 14 and 15) are weekly holidays, and Sunday (June 16) will be closed for Eid. Despite these closures, the BB has mandated that banks in industrial regions stay open to manage the disbursement of wages and bonuses and facilitate the sale of export bills.
Additionally, bank branches in Chattogram metropolitan and industrial areas will also be open to support garment workers’ payments and the processing of export bills.
The BB has instructed banks to coordinate with local authorities to ensure adequate security at the branches during this period.
Eid-ul-Azha, one of the most significant religious festivals for Muslims, will be celebrated in Bangladesh on June 17.
