All-out efforts being taken to achieve revenue collection target from VAT

---

FE Report
The National Board Revenue (NBR) is taking allout efforts to achieve revenue collection target from value added tax (VAT) at Tk158.90 billion in fiscal 2007-08, sources said.
They said the NBR has been considering some fresh moves to bring dynamism in VAT collection following a report of its intelligence unit that said an unscrupulous section is evading huge amount of VAT.
In 2006-07 fiscal, the government collected VAT worth nearly Tk 124.11 billion.
The VAT collection target was revised to Tk 136.83 billion from Tk 147.29 billion in fiscal 2006-07, followed by Tk 123.98 billion from Tk 126.75 billion in 2005-06 and Tk 106.05 billion from Tk 106.06 billion in 2004-05.
Achievement of original VAT collection target would have been possible if the steps for checking the unethical practices were taken, the sources said.
Against this backdrop, they said, a six-member NBR committee has been formed to prepare recommendations after identifying the loopholes used by vested quarters to evade VAT. It will soon submit its report, sources said.
They said the authority concerned is considering awarding a foreign company for supplying stamps and band rolls, which is attached as label on the packet of cigarette, soap and bottles of soft drinks and mineral water for deducting VAT at source.
"Our intelligence report says some unscrupulous businesses are using fake stamps and band rolls to evade VAT," a source said.
Currently, the Security Printing Corporation (Bangladesh) Ltd (SPCL), a subsidiary organisation of the central bank, procures band rolls and stamps through tenders.
However, sources said the NBR is likely to make pre-shipment inspection (PSI) compulsory on some imported items despite offering zero tariff on them.
"We are observing that some importers are showing lower than the market prices of the products of the country of origin to dodge VAT," a source said.
The NBR is also contemplating installing electronic billing system in relatively small shopping malls, roadside shops, hotels, restaurants, hospitals under VAT network.