Passport-seekers in quandary

Doulot Akter Mala | Published: December 29, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Passport became costlier for people seeking to go abroad as the government began collecting 15 per cent Value Added Tax (VAT) on passport-issuance fees from Sunday.
Those who came on the day for the important service were found in a quandary over the sudden levying of the tax, especially as the designated banks were even not prepared to receive the VAT.Â Â Â Â Â Â Â Â Â
The value tax applies to all types of services from the passport offices, including issuance of new or renewal of old passport.
Officials said the government had imposed the VAT on passport fees in Fiscal Year (FY) 2010-11 but the enforcement of the measure was held back for negotiation following a plea coming from the passport-issuance authority.
On the first day, many of the passport-seekers were caught off-guard and faced problem in paying the passport fees along with VAT as none of the six commercial banks listed for the service did receive the fees.
This correspondent visited several branches of private banks, including Premiere Bank, One Bank and Trust Bank and found none receiving the passport fees Sunday.
Officials of the banks claimed that they were unable to receive the passport fees on the day as they were yet to know the 'code' on which VAT would be deposited.
Only the Sonali Bank branch at Agargoan was receiving the fees with VAT. And it experienced a huge rush of passport applicants.Â Â Â
Munshi Muyeed Ekram, Deputy Director of the Department of Immigration and Passports (DIP), Dhaka, said the passport office had asked all banks to collect 15 per cent VAT with the passport fees from Sunday.
"We have started collecting the fees after receiving a letter from the ministry of home affairs," he said.
On claim of private banks, Mr Ekram said the passport office had sent letters to all the banks with a code to deposit the VAT with passport fees.
"We have sent letters and made it confirmed that all banks have received the direction," he added.
On Sunday, the passport office at Agargoan provided services to the passport-seekers even keeping the VAT as arrears, he added.
Talking to the FE, a senior VAT official said the revenue board recently ruled out the plea of the passport authorities to exclude passport fees from the purview of VAT.
He said some VAT offices have raised demand for VAT on passport fees since FY 2011 to the passport zonal offices in their respective zones.
The decision on imposition of VAT on all types of service charges was made effective through the Finance Act.
The VAT official said the collection procedure was delayed due to several requests of the authorities concerned for waiver of the VAT on passport fees.
Some service-seekers at passport offices claimed that they had paid passport fees a week ago but now had to pay VAT as per instructions of passport office.
Passport-seekers experienced the worst-ever sufferings due to sudden imposition of VAT without prior notice as well as private commercial banks' refusal to receive the passport fees.
doulot_akter@yahoo.com