Case backlog traps billions as revenue disputes drag on

Despite missing collection targets annually, resolving disputed revenue claims in Bangladesh's top court crawls -- leading to massive court backlogs awaiting settlement.
This logjam is evident in the case of a well-known telecom company.
For nearly a decade, the company's dispute with the revenue authority remains unresolved despite the case appearing on the High Court (HC) cause list for hearing for 275 days.
It all began when the mobile phone operator imported 360,000 SIM cards at a declared value of $145,800. However, the customs authority assessed the value much higher at $496,800.
The company appealed to the Commissioner of Customs House in Dhaka to release the goods based on their declared value, securing the disputed amount with a bank guarantee. The goods were released in 2010, with a guarantee of Tk 21.42 million.
Following the release, the company pursued a resolution through the customs review committee, the Customs, Excise and VAT Appellate Tribunal and finally the HC.
In 2014, the HC directed the company to prepare for a hearing within three months. But even after a decade, the dispute remains unsettled with hearings adjourned repeatedly.
Only 13 customs appeals settled last year
The mobile operator case is not an isolated incident as most tax-related cases filed with the higher courts face similar delays -- languishing in the system for years, shows Supreme Court data.
In 2023, HC benches disposed of only 13 customs appeals, while 1,147 new cases were filed. As of December 2023, a backlog of 7,072 customs appeals awaited resolution.
The situation is no better for income tax cases.
Only 132 references were disposed of in 2023, while 490 new ones were filed. By December, a hefty 8,115 income tax references remained pending before the HC benches.
VAT cases too show no signs of improvement.

The number of value-added tax (VAT) revision cases remained stagnant at 180 from January to December 2023 -- with zero disposals. Only 15 VAT appeal cases were settled in 2023, while 409 new ones were filed. The backlog stood at 1,487 by year-end.
According to the National Board of Revenue (NBR), VAT-related cases alone held up Tk 239.4 billion as of December 2023. Including income tax and customs disputes, this figure would undoubtedly be much higher.
Revenue cases need special focus, more judges
Supreme Court Senior Advocate Ahsanul  Karim -- a tax law expert -- said the government side may feel less pressure to settle these cases quickly as they collect hefty sums upfront before a party appeals to the HC.
The lawyer also pointed to the massive court backlog as a key factor contributing to the slow disposal rate.
Mr Karim suggested appointing more judges with deep knowledge of tax matters, as he commented that the justice system becomes gridlocked without judges possessing adequate expertise in revenue cases.
Previously, NBR maintained its own legal panel. However, the Attorney General's Office has been managing the NBR cases in the higher courts since 2021.
Attorney General AM Amin Uddin told The Financial Express that they are placing special emphasis on the hearing of revenue-related cases due to their potential to boost government coffers.
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