NBR launches drive to collect VAT from sweetmeat producers
Monday, 31 December 2007
FE Report
The National Board of Revenue (NBR) has launched a drive to collect value added tax (VAT) from leading producers of sweetmeat instead of retailers.
The VAT officials of the board recently visited 10 sweetmeat factories in the city including BonoPhul, Rosh, Premium, Muslims etc, a NBR source said.
Earlier, the taxmen used to collect VAT from the retail sweetmeat shops on the basis of their sale, but now they will collect tax on the volume produced in the factories.
There is widespread allegation over improper realisation of VAT from sweetmeat shops.
It has been found that a number of sweetmeat retailers are reluctant to issue receipts after sale, sources said.
The sweetmeat producers will have to pay 15 per cent VAT on the quantity produced.
The NBR sources said VAT collection will increase once this step is taken, an NBR official said.
Source concerned said the board has long been deprived of a sizeable amount of VAT from five service sectors that include hotels, restaurants, sweetmeat shops, furniture shops and beauty parlours.
Sources said incidence of VAT evasion in the five service sectors is higher than other sectors.
In a bid to realise VAT from those sectors and thwart VAT evasion, the board has issued an order for mandatory installation of electronic cash registers at all retail outlets from July 2008.
The NBR had also waived customs duty against import of electronic cash registers in the current fiscal to facilitate the business houses.
In the last fiscal, the board collected VAT worth about Tk 125.06 billion and for the current fiscal the target has been set at Tk 128 billion (12800 cr).
The National Board of Revenue (NBR) has launched a drive to collect value added tax (VAT) from leading producers of sweetmeat instead of retailers.
The VAT officials of the board recently visited 10 sweetmeat factories in the city including BonoPhul, Rosh, Premium, Muslims etc, a NBR source said.
Earlier, the taxmen used to collect VAT from the retail sweetmeat shops on the basis of their sale, but now they will collect tax on the volume produced in the factories.
There is widespread allegation over improper realisation of VAT from sweetmeat shops.
It has been found that a number of sweetmeat retailers are reluctant to issue receipts after sale, sources said.
The sweetmeat producers will have to pay 15 per cent VAT on the quantity produced.
The NBR sources said VAT collection will increase once this step is taken, an NBR official said.
Source concerned said the board has long been deprived of a sizeable amount of VAT from five service sectors that include hotels, restaurants, sweetmeat shops, furniture shops and beauty parlours.
Sources said incidence of VAT evasion in the five service sectors is higher than other sectors.
In a bid to realise VAT from those sectors and thwart VAT evasion, the board has issued an order for mandatory installation of electronic cash registers at all retail outlets from July 2008.
The NBR had also waived customs duty against import of electronic cash registers in the current fiscal to facilitate the business houses.
In the last fiscal, the board collected VAT worth about Tk 125.06 billion and for the current fiscal the target has been set at Tk 128 billion (12800 cr).