Revenue Worry
Revenue collection is in doldrums. With the first half of the 1997-98 fiscal gone, the target shortfall has been put at Taka 550 crore against a projected figure of Taka 6803.29 crore. This syndrome has been there right from the beginning. Collection in the first quarter was about Taka 221 crore short of the target.
What worries us in this connection is that the depressing trend in revenue collection looks all set to be holding in the days to come. Because the series of devaluations that Taka has undergone against dollar has made import costly. Naturally, less import duty is likely to pour into the exchequer.
The authorities have attributed the general sluggishness of the proceedings to a number of reasons. 'Evasion of duty' by the importers particularly car importers is said to be one of them. This seems to us a very uninvolved response - if it is one at all - to the problem at hand. As far as the 'evasion of duty' by the car importers is concerned, the government would do well not cry over it any more simply because it looks unretrievable.
What it should really look forward to is a change in the devitalising culture of duty evasion. It may not do a great deal to boost the import duty if Taka continues to slide against dollar in a phase that seems to be no worse than a nightmare for Asian currencies in general but it can and it ought to look for ways to plug the legal loopholes to stop duty pilferage by a section of dishonest and unscrupulous businessmen for whom national economy is of no meaning. The finance minister has referred to the revenue unfriendly nature of our legal system more often than not. We believe time has come for the government to look into the matter more seriously.
Revenue collection has to pick up some speed and that too quickly together with a tightening the legal lasso which brooks no delay either. Without setting the house in order it would be unrealistic of us to expect improvement in our economic health through mere pumping in of FDIs and capital from outside.
For all latest news, follow The Daily Star's Google News channel.
Comments