More than 77 per cent of shops at a luxury shopping mall in Chattogram did not pay value-added tax and did not hold electronic business identification numbers, according to a survey of the National Board of Revenue’s VAT intelligence.
The NBR’s VAT Audit, Intelligence and Investigation Directorate recently conducted the survey at Mimi Super Market in the port city and found that 203 out of the 263 shops located there did not have BINs, also known as VAT registration numbers.
Only 23 per cent or 60 shops had BINs, the directorate said on Sunday in a press release.
Even VAT-registered shops did not comply with the provisions of the VAT law, including filing of VAT returns and proper payment of VAT collected from consumers.
Only 10 of the shops properly displayed the VAT certificate on their premises.
The situation is almost similar for other big shopping malls, markets and even in retail sector in the port city, it said.
The directorate will conduct a similar survey at shopping malls and markets in Chattogram and other cities across the country, it added.
According to the directorate, the intelligence team filed cases against 253 shops, including non-registered shops and non-compliant registered shops, at the market for irregularities related to VAT.
Shops at the market usually sell luxury products, including local and international branded items. Some of the shopkeepers are also engaged in the import business.
According to the directorate, shopkeepers collected VAT from customers but did not deposit to the government exchequer.
Besides filing cases, the directorate also requested the Chattogram VAT commissionerate to collect the VAT evaded in the past months along with the 2-per cent interest on the evaded amount.
A VATAIID team, led by its deputy director Tanvir Ahmed, conducted the survey as per the instructions of the revenue board.
The shops include clothing, jewellery, tailoring and shoe stores and food courts.
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