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VAT evasion by hotels and restaurants

HC summons VAT commissioner in Cox's Bazar

FE REPORT | Tuesday, 30 May 2023



The High Court (HC) on Monday summoned the VAT commissioner in Cox's Bazar to explain an allegation of VAT evasion by the hotels, motels and restaurants in collusion with local VAT officials.
He has been asked to appear before the court on June 18.
The HC bench of Justice Md Nazrul Islam Talukder and Justice Khizir Hayat passed the order after hearing a writ petition.
Lawyer Israt Jahan appeared in the hearing on behalf of the writ petitioner, while lawyer Khurshid Alam Khan represented the Anti-Corruption Commission (ACC).
Following a writ petition, the HC bench on November 21, 2022 wanted to know the progress of the investigation into the allegation of evasion of Value Added Tax (VAT) collected from customers against seven hotels in Cox's Bazar.
It also wanted to know what steps have been taken by the authorities after publication of a report in a national daily about the misappropriation of VAT by the owners of hotels, motels and restaurants in collusion with the officials of the 'Customs, Excise and VAT Divisional Office' in Cox's Bazar.
Later, the deputy commissioner in Cox' Bazar submitted a report stating that they had found the authenticity of the allegation. However, the National Board of Revenue (NBR) in a statement vindicated its officials. After hearing the parties, the HC summoned the VAT commissioner in Cox's Bazar.
On November 16, 2022, a Bangla daily published the report that said an inquiry of the Anti-Corruption Commission's Chattogram Integrated District Office-2 has revealed that many hotels, motels, and restaurants in Cox's Bazar are not paying VAT. The report also said that most of the hotels do not store the guest entry registers.