NBR asks 37 cos to pay Tk 694cr in unpaid VAT

Staff Correspondent | Published: 21:27, Oct 25,2017 | Updated: 00:04, Oct 26,2017

 
 

The large taxpayers unit (value-added tax) of National Board of Revenue has issued demand notices to 37 public and private companies, asking them to pay Tk 694 crore in VAT and source VAT which was earlier ‘evaded’ by the entities.
The LTU issued the primary demand notices in September for the ‘evaded’ amount which was detected through auditing and scrutinising the documents including VAT returns submitted by the companies and through other intelligence and investigation activities.
Of the amount, state-owned Bangladesh Telecommunications Company Limited alone evaded Tk 379 crore in VAT.
BTCL evaded the amount in the form of VAT collected from its clients, VAT on floor space and establishment rent and other source VAT, officials of the LTU said.
The LTU also asked three mobile operators — Grameenphone, Robi and Banglalink — to pay Tk 7.25 crore, Tk 7.58 crore and Tk 8.35 crore respectively which the operators did not submit as VAT on floor space and establishment rent.
Earlier, the VAT office had demanded another Tk 83 crore in VAT from the operators on the same ground.
It also claimed Tk 16.89 crore in VAT on space and establishment rent from Premier Bank.
The VAT office also notified nine insurance companies for paying Tk 110 crore in VAT on agents’ commission and re-insurance commission.
New Zealand Dairy Ltd was also asked to pay Tk 5 crore which the company received as rebate ‘illegally’.
Officials of the NBR said that the LTU would soon issue demand notices to Power Development Board and DESCO for paying Tk 33 crore and Tk 32 crore respectively.
The LTU has intensified its audit and investigation activities to achieve its revenue collection target in the current fiscal year 2017-2018.
In the first quarter, the VAT office faced a shortfall of Tk 375 crore in VAT collection due mainly to lower collection from the cigarette sector.
In July-September, the LTU managed to collect Tk 9,544 crore against the target of Tk 9,919 crore.
It faced a shortfall of collection by Tk 476 crore from the cigarette sector in the period.
Gas, cigarette and mobile sectors are the major revenue contributors of the unit.
Officials said the LTU has set its overall revenue collection target expecting higher supplementary
duty on low-brand cigarettes of international companies.
However, international cigarette company British American Tobacco Company is not paying the duty on the basis of new price structure adopted in the budget rather it is paying the duty as per the previous year›s structure.
BATB is opposing the new tax measure terming it discriminatory.
VAT collection from the mobile phone sector increased to Tk 1,239 crore in July-September this year, posting a 26.58-per cent growth, from Tk 978 crore collected in the same period of last year.
The collection target from the sector for the July-September period of this year was Tk 1,184 crore.

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