NBR moves to realise Tk150b unpaid VAT

UNB . Dhaka | Update:

The National Board of Revenue (NBR) has decided to send letters to value added tax (VAT) dodgers to realise a huge unpaid VAT of Tk 150 billion.

Sources at the Large Taxpayers Unit (LTU) of the VAT wing of NBR told UNB that the NBR will soon start sending letters to the business entities requesting them to pay their due VAT.

"If this does not bring positive result then we will go for the law suit as per the law," said an official speaking on condition of anonymity.

He said there is Tk 150 billion of VAT remain unpaid by gas companies, private mobile operators, banks and other entities.

There is allegation that some entities are realising the VAT from the customers but not depositing the tax to the national exchequer, said NBR sources.

NBR has taken an initiative to dispose long pending cases related to VAT aiming at expediting the collection of the revenue in the national exchequer.

"We will strengthen our law suit for quick disposal of the VAT related cases that have been pending in the courts," said a senior official working in the LTU.

"The NBR has given directives to strengthen their field level monitoring for this purpose," said an NBR official.

The LTU officials will scrutiny and examine the prices announced by the big business houses for their products and services.

So far, the VAT officials have accepted the prices of the products and services declared by the giant business houses.

"But the LTU officials while doing their scrutiny in the public and private entities' for the prices of the products and services, will also check annual report and other documents. There will be no breach of law in this process," said the official.

For fiscal year 2018-19, the government has set a total revenue target - tax and non-tax revenue - at Tk3.39 2.80 billion. Of this amount, the NBR has been tasked to source Tk 2, 96 2.01 billion.

Income tax and other direct taxes will contribute Tk 1,022.01 billion, import and export tax will contribute Tk 325.89 billion, VAT Tk 1,105.43 billion, supplementary duty Tk 487.66 billion, excise duty Tk 20.91 billion and turnover tax Tk 110 billion.

Of the Tk 1,105.43 billion VAT target, the share for the LTU is Tk 606.17 billion.

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