Some 2,330 jewellers are operating in Dhaka city without paying taxes, while a number of businesses selling essential commodities, including medicine, are subject to taxes.
The Bangladesh Jewellers Association (BAJUS) recently sent the list of these jewellers to National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan, responding to a request from the VAT- Implementation wing.
BAJUS Vice-President Masudur Rahman told The Financial Express the names and contacts of 2,330 jewellers had been sent to the NBR according to a meeting decision to bring all such businesses under the tax net to create a level playing field.
In a letter to the NBR on January 19, BAJUS General Secretary Badal Chandra Roy wrote revenue collection from jewellery businesses could be increased many times if all jewellers pay taxes and VAT.
Numerous jewellers are operating defying all government rules, while the compliant ones are struggling to survive after paying VAT and taxes, he said.
Rahman said there are 1,277 registered BAJUS members who are using electronic fiscal devices (EFDs) and paying VAT as per the government rules.
"Since 2021, we have tried to bring the other jewellery businesses under the purview of VAT and tax and requested them several times to be compliant. But they declined to be so," he told The Financial Express.
The VAT-compliant businesses are facing survival challenges due to the non-compliant ones who can offer merchandise at lower prices without VAT, Rahman noted.
EFDs would be installed in all jewellery shops in the Dhaka and Chattogram divisions, the BAJUS official added.
Officials said the NBR would send letters to the businesses named on the BAJUS list, asking them to show proof of their VAT and tax registrations.
"Since 2021, our association has been urging the government to ensure the use of EFDs by all 40,000 jewellery businesses in Bangladesh," said Rahman.
As per the VAT and Supplementary Duty Act 2019, all businesses must have the Taxpayer's Identification Number (TIN) and the Business Identification Number (BIN).
Member of the NBR's VAT Implementation wing Dr Md Abdur Rouf said the revenue board had started a full-fledged drive to ensure VAT payment through EFDs.
Speaking about the BAJUS letter, he said it is commendable that the association is cooperating with the government to find out the non-compliant businesses to mobilise revenue.
He, however, alleged the association has a role in helping its members evade taxes and get involved in rent-seeking.
All 23-24 sectors would gradually be brought under EFD coverage, with restaurant and tile next in line, added Rouf.
"We have ramped up efforts to ensure compliance through the use of EFD by small and medium businesses and e-invoicing by large ones," the NBR official further said.
The government received Tk 550 million in VAT from jewellers last year. Genex Infosys was assigned to install EFDs at businesses and provide after-sales services.
Currently, the number of registered VAT payers in Bangladesh is just over 550,000. A significant number of eligible businesses do not pay VAT.
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