Revenue collection by Ctg Customs overshoots target
Pankaj Dastider | Sunday, 27 February 2011
Pankaj Dastider
CHITTAGONG, Feb 26: In spite of huge outstanding revenue with the state owned enterprises the Chittagong Customs Excise and Vat Commissionerate has earned Tk 21,950 million in the first seven months of the current fiscal (2010-11). Revenue target set for the current fiscal is Tk 36,510 million and it was Tk 19,110 million till last month (January 1011). But the Vat Customs office has collected Tk 2840 million, up by 15 per cent from the target, in the period. VAT officials in Chittagong, however, said that Tk 2750 million out of the additional amount collected in seven months till January has been realized from the Patenga Circle alone, where most of the oil sector installations like fuel refiners Eastern Refinery Ltd and three oil marketing companies - Padma Oil Co Ltd, Meghna Petroleum Ltd and Jamuna Oil Co Ltd are located. The Commissionerate in Chittagong also earned Tk 29,320 million (Tk 2932 crore) on account of VAT and other charges in the last fiscal year (2009-2010), a growth by 34 per cent compared to that of the previous year. The revenue earning was also 7 per cent up from last year's target set by national board of revenue. The wing targeted Tk 27,500 million for the fiscal 2009-10, officials said, adding that in the year 2008-09 it earned revenue of Tk 21,910 million, which was Tk 2290 million higher than the same year's target. Officials said the trend of revenue collection has been very positive for the last two years. It was possible for them due to motivational activities and enhanced trust of the clients on the department, they observed. "Improved people's confidence to the VAT (value added tax) rules is a major factor in realizing the government revenue. And that is what we are trying to do in the department for the last two years," said Firoz Shah Alam, Commissioner of Customs Excise and Vat, Chittagong. He said that he always favours talking to the parties, big or small, individual or business house, directly to make them understand the significance of paying revenue on earning to the government exchequer. His Commissionerate also collected evaded tax of Tk 800 million in the last fiscal year by checking and restraining evasion of payable VAT, a measure highly appreciated by the NBR authority. Sources in the state owned fuel refinery and marketing companies said that the ERL paid Tk 3900 million as VAT and ATV on production and import of crude oil while the three petroleum marketing companies paid Tk 3500 million till last fiscal year. Revenue outstanding with Eastern Refinery Ltd, according to the ERL till January 2011, is Tk 6230 million. The outstanding Vat amounts are Tk 165.7 million with Padma Oil, Tk 603 million with Meghna Petroleum and Tk 616 million with Jamuna Oil. The Customs and Vat office at CDA residential area in Chittagong conducted a number of meetings with senior officials of the concerned companies in 2010 and sent letters urging them to clear the previous outstanding by installments. All marketed goods of the three state owned petroleum marketing companies came under VAT rules in the budget of the fiscal year 2000-2001 but the revenue was left unpaid for years till then, field level sources alleged. It is also alleged that the petroleum marketing companies often decline to furnish proper information regarding their sales return and related challans as per VAT Form 11, which has to be supplied every month for which concerned officials find it difficult to calculate the payable VAT.
CHITTAGONG, Feb 26: In spite of huge outstanding revenue with the state owned enterprises the Chittagong Customs Excise and Vat Commissionerate has earned Tk 21,950 million in the first seven months of the current fiscal (2010-11). Revenue target set for the current fiscal is Tk 36,510 million and it was Tk 19,110 million till last month (January 1011). But the Vat Customs office has collected Tk 2840 million, up by 15 per cent from the target, in the period. VAT officials in Chittagong, however, said that Tk 2750 million out of the additional amount collected in seven months till January has been realized from the Patenga Circle alone, where most of the oil sector installations like fuel refiners Eastern Refinery Ltd and three oil marketing companies - Padma Oil Co Ltd, Meghna Petroleum Ltd and Jamuna Oil Co Ltd are located. The Commissionerate in Chittagong also earned Tk 29,320 million (Tk 2932 crore) on account of VAT and other charges in the last fiscal year (2009-2010), a growth by 34 per cent compared to that of the previous year. The revenue earning was also 7 per cent up from last year's target set by national board of revenue. The wing targeted Tk 27,500 million for the fiscal 2009-10, officials said, adding that in the year 2008-09 it earned revenue of Tk 21,910 million, which was Tk 2290 million higher than the same year's target. Officials said the trend of revenue collection has been very positive for the last two years. It was possible for them due to motivational activities and enhanced trust of the clients on the department, they observed. "Improved people's confidence to the VAT (value added tax) rules is a major factor in realizing the government revenue. And that is what we are trying to do in the department for the last two years," said Firoz Shah Alam, Commissioner of Customs Excise and Vat, Chittagong. He said that he always favours talking to the parties, big or small, individual or business house, directly to make them understand the significance of paying revenue on earning to the government exchequer. His Commissionerate also collected evaded tax of Tk 800 million in the last fiscal year by checking and restraining evasion of payable VAT, a measure highly appreciated by the NBR authority. Sources in the state owned fuel refinery and marketing companies said that the ERL paid Tk 3900 million as VAT and ATV on production and import of crude oil while the three petroleum marketing companies paid Tk 3500 million till last fiscal year. Revenue outstanding with Eastern Refinery Ltd, according to the ERL till January 2011, is Tk 6230 million. The outstanding Vat amounts are Tk 165.7 million with Padma Oil, Tk 603 million with Meghna Petroleum and Tk 616 million with Jamuna Oil. The Customs and Vat office at CDA residential area in Chittagong conducted a number of meetings with senior officials of the concerned companies in 2010 and sent letters urging them to clear the previous outstanding by installments. All marketed goods of the three state owned petroleum marketing companies came under VAT rules in the budget of the fiscal year 2000-2001 but the revenue was left unpaid for years till then, field level sources alleged. It is also alleged that the petroleum marketing companies often decline to furnish proper information regarding their sales return and related challans as per VAT Form 11, which has to be supplied every month for which concerned officials find it difficult to calculate the payable VAT.