70pc shops in malls, markets out of tax net
Tuesday, 19 February 2008
Syed Ishtiaque Reza
About 70 per cent of the shops in the city's posh shopping malls and markets are not within the tax net, thus depriving the government of a huge revenue every year.
This was revealed by the National Board of Revenue (NBR) in a recent survey.
"The shop owners invested a huge amount of money to take possession of the shops in these luxury shopping malls. The shops were decorated with costly items. Their annual turnover is high. But do not feel the necessity of having their tax identification numbers (TINs)," said a senior official of the National Board of Revenue (NBR).
As they do not have TINs, it is difficult to know about the sources of their investments, about their sales and profits, the official added.
The NBR survey of the markets and shopping malls that started in Dhaka nearly a year ago was aimed at making assessment and fixation of their taxes in collaboration with the shop owners associations of the respective shopping centres and malls.
"But the associations for unknown reason did not cooperate with us," the official said. He said now the NBR itself took the responsibility of opening the tax files of these shops.
"We are not to make the shop owners scared. We are giving them time to understand the whole process and trying to make a convenient system to realise revenues from them", the NBR official said.
Besides, the shops in the big markets and shopping malls, sweetmeat shops, beauty-parlours and restaurants have been identified as major VAT evading establishments. Most of the sweetmeat shops, beauty parlours and restaurants do not maintain VAT registers.
The NBR official said the drive in shopping malls, markets and shops for both spot assessment and identification would continue. The drive is also being extended to other cities and towns.
The NBR official who has been involved in the drive since the beginning said the result so far is encouraging. But it could be better if the NBR was equipped with adequate manpower and logistics.
About 70 per cent of the shops in the city's posh shopping malls and markets are not within the tax net, thus depriving the government of a huge revenue every year.
This was revealed by the National Board of Revenue (NBR) in a recent survey.
"The shop owners invested a huge amount of money to take possession of the shops in these luxury shopping malls. The shops were decorated with costly items. Their annual turnover is high. But do not feel the necessity of having their tax identification numbers (TINs)," said a senior official of the National Board of Revenue (NBR).
As they do not have TINs, it is difficult to know about the sources of their investments, about their sales and profits, the official added.
The NBR survey of the markets and shopping malls that started in Dhaka nearly a year ago was aimed at making assessment and fixation of their taxes in collaboration with the shop owners associations of the respective shopping centres and malls.
"But the associations for unknown reason did not cooperate with us," the official said. He said now the NBR itself took the responsibility of opening the tax files of these shops.
"We are not to make the shop owners scared. We are giving them time to understand the whole process and trying to make a convenient system to realise revenues from them", the NBR official said.
Besides, the shops in the big markets and shopping malls, sweetmeat shops, beauty-parlours and restaurants have been identified as major VAT evading establishments. Most of the sweetmeat shops, beauty parlours and restaurants do not maintain VAT registers.
The NBR official said the drive in shopping malls, markets and shops for both spot assessment and identification would continue. The drive is also being extended to other cities and towns.
The NBR official who has been involved in the drive since the beginning said the result so far is encouraging. But it could be better if the NBR was equipped with adequate manpower and logistics.