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NBR making list of cos to bring under LTU

Jasim Uddin | Published: 00:00, Nov 28,2019

 
 

The National Board of Revenue is preparing a list of large companies to bring them under the jurisdiction of its Large Taxpayers Unit (LTU) of value-added tax for ensuring proper revenue collection from the entities and providing them better services.

VAT wing of the revenue board on Tuesday asked its field-level offices across the country to send by next week the list of companies eligible to come under the LTU jurisdiction.

According to the NBR guidelines on selection of taxpayers for the LTU, companies which paid on average Tk 10 crore in VAT in last three years will be brought under the LTU (VAT).

It also asked the LTU to prepare the list of companies which paid VAT below the threshold and send the names of the companies to the NBR to exclude those from the unit’s jurisdiction.

The NBR committee on selection of taxpayers for the LTU made the decision at a meeting held on November 18.

VAT policy member Abdul Mannan Shikder heads the committee.

The revenue board in 2003 established the LTU (VAT) to handle the large taxpayers under functional structure with multiple wings, including revenue accounting, collection and enforcement, audit and taxpayer services, where officials at the wings carry out their respective responsibilities.

In the other field-level VAT offices, a particular VAT official looks after all issues ranging from revenue collection to conducting audit of a taxpayer.

Previously, businesses running VAT-related activities from their Dhaka offices and paid on average Tk 5 crore in VAT in three financial years were considered for the LTU and the number of companies was supposed to be limited to 200.

The revenue board in the budget for the current fiscal year 2019-2020 expanded the jurisdiction of the unit across the country and scrapped the restriction on the highest number of companies under the unit along with increasing the average payment of VAT.

Earlier in 2017, the LTU prepared a list of 227 large companies and requested the revenue board to place the companies under the unit.

Of the companies, at least 145 paid over Tk 10 crore in VAT in FY 2016-2017.

The number of large businesses may increase further along with expanding of the country’s economy.

Currently, 162 companies, including banks, insurance companies, telecommunication companies, pharmaceutical companies, cement companies, ceramic firms, petroleum gas companies and luxury hotels, are under the jurisdiction of the unit.

Officials said that some other entities had already included in the list as some big companies which were already under the LTU registered their other units with the LTU under central VAT registration.

Some other companies have also applied to the revenue board to be come under the LTU, they said.

The committee will soon sit to finalise the list of companies for the LTU that collects around 55 per cent of the total VAT in the country, they added.

They said that selection of the companies for the unit was a continuous process as the committee every year would scrutinise the documents of eligible businesses and recommend either bringing to or withdrawing those from the jurisdiction of the LTU.

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