VAT from top companies rises 22.6pc
Saturday, 15 March 2008
Doulot Akter Mala
Tax collection from the country's big enterprises grew a 22.6 per cent in the first eight months of the fiscal, showing a gradual return of business confidence and an up-turn in consumer spending, officials said Thursday.
Companies and top state-run enterprises, whose tax is collected by the Large Tax Payers Unit (LTU) of the revenue board, have paid 63.48 billion in value added taxes (VAT) until February, up from Tk 51.75 billion the same period last year, LTU statistics said.
"It is a clear sign that business confidence has returned. VAT collection shows commercial activities have picked up," chairman of the National Board of Revenue (NBR) Muhammad Abdul Mazid said.
Collection of VAT, a key consumer-spending indicator, was relatively low in September, October and November, but it has increased over the last three months due to effective steps taken by the board, he said.
The government set a target Tk 101.44 billion (10144 crore) of VAT for the LTU department in the current fiscal.
British American Tobacco (BAT) was as usual the largest VAT payer among the companies, as it paid Tk 17.3 billion (1730 cr), up over eight per cent from that of the same period last fiscal.
Tobacco is the most taxed item in the country, with VAT in cigarette ranging between 40- 75 per cent. BAT has paid Tk 1.3 billion (130 cr) more VAT than the previous year.
The country's largest company GrameenPhone paid Tk 8.67 billion in the first eight months, recording a growth of over 74 per cent.
Dhaka Tobacco, owned by one of the country's largest conglomerates, Akij Group, has paid 7.43 billion in VAT during the period, up about 11.14 per cent.
Titas, the largest state-owned gas distributor in the country, paid Tk 5.07 billion but its taxes fell over 10 per cent.
The country's second largest mobile phone company BanglaLink emerged as the fifth largest VAT payer, paying over Tk 3.59 billion in the first eight months, recording an 'astounding' growth of over 544 per cent in the period.
It's nearest rival Telekom Malaysia-owned AKTel fell further off the competition as the company paid only Tk1.71 billion in VAT in the first eight months, posting a rise of only 34.46 per cent.
LTU collects taxes from 160 organisations, both public and private. The department was set up in 2001 as part of the International Monetary Fund (IMF)-suggestions to streamline the country's revenue administration.
Tobacco, telecom and gas companies are usually top Vat payers in the country, but officials said the telecom companies have quickly established their place in the top ten due to rapid growth in mobile phone uses.
Leading economist and the research director of Bangladesh Institute of Development Studies (BIDS) Zaid Bakht said the growth in VAT shows consumer spending has increased in the country.
"It is a positive sign for the economy. People have increased their spending substantially, which has been reflected in the payment of Vat," he told the FE.
Price hike and government's anti-graft drive also contributed to the growth of tax collection, he said.
"In this year's budget, the government has expanded tax net and adopted some other measures to increase revenue. And these are now paying off," he added.
In the current fiscal, the government has extended the VAT network bringing more goods and services. The government set a target of VAT collection at Tk 158.90 billion for the fiscal 2007-08.
In 2006-07 fiscal, the government collected VAT worth over Tk 125 billion.
Tax collection from the country's big enterprises grew a 22.6 per cent in the first eight months of the fiscal, showing a gradual return of business confidence and an up-turn in consumer spending, officials said Thursday.
Companies and top state-run enterprises, whose tax is collected by the Large Tax Payers Unit (LTU) of the revenue board, have paid 63.48 billion in value added taxes (VAT) until February, up from Tk 51.75 billion the same period last year, LTU statistics said.
"It is a clear sign that business confidence has returned. VAT collection shows commercial activities have picked up," chairman of the National Board of Revenue (NBR) Muhammad Abdul Mazid said.
Collection of VAT, a key consumer-spending indicator, was relatively low in September, October and November, but it has increased over the last three months due to effective steps taken by the board, he said.
The government set a target Tk 101.44 billion (10144 crore) of VAT for the LTU department in the current fiscal.
British American Tobacco (BAT) was as usual the largest VAT payer among the companies, as it paid Tk 17.3 billion (1730 cr), up over eight per cent from that of the same period last fiscal.
Tobacco is the most taxed item in the country, with VAT in cigarette ranging between 40- 75 per cent. BAT has paid Tk 1.3 billion (130 cr) more VAT than the previous year.
The country's largest company GrameenPhone paid Tk 8.67 billion in the first eight months, recording a growth of over 74 per cent.
Dhaka Tobacco, owned by one of the country's largest conglomerates, Akij Group, has paid 7.43 billion in VAT during the period, up about 11.14 per cent.
Titas, the largest state-owned gas distributor in the country, paid Tk 5.07 billion but its taxes fell over 10 per cent.
The country's second largest mobile phone company BanglaLink emerged as the fifth largest VAT payer, paying over Tk 3.59 billion in the first eight months, recording an 'astounding' growth of over 544 per cent in the period.
It's nearest rival Telekom Malaysia-owned AKTel fell further off the competition as the company paid only Tk1.71 billion in VAT in the first eight months, posting a rise of only 34.46 per cent.
LTU collects taxes from 160 organisations, both public and private. The department was set up in 2001 as part of the International Monetary Fund (IMF)-suggestions to streamline the country's revenue administration.
Tobacco, telecom and gas companies are usually top Vat payers in the country, but officials said the telecom companies have quickly established their place in the top ten due to rapid growth in mobile phone uses.
Leading economist and the research director of Bangladesh Institute of Development Studies (BIDS) Zaid Bakht said the growth in VAT shows consumer spending has increased in the country.
"It is a positive sign for the economy. People have increased their spending substantially, which has been reflected in the payment of Vat," he told the FE.
Price hike and government's anti-graft drive also contributed to the growth of tax collection, he said.
"In this year's budget, the government has expanded tax net and adopted some other measures to increase revenue. And these are now paying off," he added.
In the current fiscal, the government has extended the VAT network bringing more goods and services. The government set a target of VAT collection at Tk 158.90 billion for the fiscal 2007-08.
In 2006-07 fiscal, the government collected VAT worth over Tk 125 billion.