Large Taxpayers’ Unit (value-added tax) of the National Board of Revenue is scrutinising declining revenue payment by 35 large companies and their deteriorating financial health in last few years to work out reasons for the situation.
The LTU (VAT) has taken the move after NBR chairman Abu Hena Md Rahmatul Muneem sought the list of underperforming companies under the unit.
Six separate teams are assigned to scrutinise the last five years’ revenue growth, market share, balance sheet, income growth and production capacity of the companies, LTU (VAT) officials said.
The teams have already started visiting the factory premises of the companies and the investigation process would be completed by February 2021.
The officials said that the LTU (VAT) would take necessary measures based on the findings of the teams as the companies account for around 21 per cent of 170 registered companies under the unit.
The LTU (VAT) has already recommended that the revenue board exclude the companies from the unit following the companies’ deteriorating financial health.
Negative or slower growth in revenue payment by the companies is hampering the overall revenue collection growth of the unit, it said.
The average net VAT payment in last three financial years declined below Tk 10 crore by the companies, according to the LTU (VAT) data.
The average VAT payment by the companies stood between Tk 9.84 crore and Tk 5 lakh in last three years.
The 35 companies include Orion Infusion Ltd, National Polymer Industries Ltd, Eastland Insurance Co Ltd, International Television Ltd (NTV), Intercontinental Dhaka, Trais Pack Ltd, Bangladesh Television, Lalbagh Chemical and Perfumery Works Ltd, Akij Particle Board Mills Ltd, Jayson Pharmaceutical Ltd, Bangladesh Insulator and Sanitaryware Factory Ltd, Phoenix Insurance Co Ltd, Mutual Food Products Ltd, Bashundhara Paper Mills Ltd, Mir Cement Ltd, Global Heavy Chemical Ltd, ACME Agrobate and Beverage Ltd, Partex Furniture Ltd, Akij Printing and Packages Ltd, Sinha Printers Ltd, Magura Paper Mills Ltd, GA Company Ltd, National Tubes Ltd, Libra Infusions Ltd, Otobi Ltd, Apollo Ispat Complex Ltd, Apollo Ispat Complex Ltd (unit-2), The Bengal Packages Ltd, Miracle Industries Ltd (unit-2), Tampaco Foils Ltd, United Edible Oils Ltd, Dipa Food Products Ltd, Interspeed Advertising Ltd and Farzana Oil Refineries Ltd.
Though the average VAT payment by Intercontinental Dhaka in last three years declined below Tk 10 crore, the international luxury hotel paid Tk 18.14 crore in the fiscal year 2019-2020.
NBR officials said that VAT payment by the hotel would increase in the coming years as it became fully operational after closure for renovation.
VAT payment by six other companies, including NTV, BTV, Miracle Industries (unit-2), Tampaco Foils, Dipa Food Products and Farzana Oil Refineries, significantly declined in the period, they said.
Dipa Food Products and Farzana Oil Refineries have already applied to the unit for factory closure, they said.
Out of the 25 public entities registered with the unit, revenue growth rate of National Tubes, BTV and Bangladesh Insulator and Sanitaryware Factory was very low in recent years, they added.
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