Recovery of evaded VAT poor

FE Team | Published: September 22, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Doulot Akter Mala
The National Board of Revenue (NBR) has taken a move to realise stuck-up Value Added Tax (VAT) worth Tk 2.32 billion (Tk 231.95 crore) that was evaded during the last seven years.
The VAT monitoring, intelligence and investigation department has found the cases of tax evasion during 2001-2007 fiscal period. Of the amount, different commissionarates so far could only realise Tk 69.8 million (6.98 crore).
The VAT intelligence team disclosed this at a meeting with the NBR last week.
The NBR has decided to realise the outstanding amount of evaded VAT within next three/four months conducting tripartite meeting among the intelligence, commissioners and taxpayers.
The VAT department will resolve the cases, which have no legal complexities in the high court.
In the meeting, the VAT intelligence proposed to prepare a sector-wise (producers and service providers) monitoring list on the basis of circles, divisions and commissionarates.
The VAT intelligence also proposed to work in a partnership with the inspectors of different commissionarates because of manpower shortage.
Appreciating the intelligence proposals, the VAT member, who presided the meeting, included those measures in the work plan of achieving VAT target in the current fiscal.
The board also decided to ensure the realisation of the blocked VAT through conducting a tripartite meeting with the Director general of VAT intelligence, representatives of related commissionarates and taxpayers.
In the meeting, the NBR also decided to strengthen monitoring on realisation of VAT from sales of Iftar food items in the holy month of Ramadan.
The board has given directive to all the commissioners to implement the decision.
The board warned them to remain careful about the religious sentiments of the people while implementing the decision.
The VAT department will monitor the sale of Iftar food items forming small groups. The team will assess tax on the basis of stock before one hour of iftar.
The NBR has asked the department to assess VAT on the basis of 90 per cent stock of iftar items.
In July-August 2007-08, the board has received Tk 21.05 billion VAT posting a 12 per cent growth.
But, average growth is not up to the expected level because of reduction of mobile phone tariff and decrease in sale of SIM card.
The growth of revenue from the cigarette sector, which is considered one of the largest tax-paying sectors, was only 2.51 per cent in the first two months.
The board has directed the VAT department simultaneously to monitor the service sector and the activities at the import stage.
The NBR Chairman attended the meeting and gave specific directive to achieve the target of Tk 158.90 billion for fiscal 2007-08.
The NBR chief requested the VAT department to strengthen monitoring of the operations of the small restaurants, community centers, Chinese restaurants, and fast food shops.
The meeting also decided to instruct the taxmen to behave politely with the taxpayers to create a positive impression among them.