Harassment by VAT officials in Ramadan alleged

FE Report | Published: July 11, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Businesses have alleged unnecessary harassment by the Value Added Tax (VAT) officials in the month of Ramadan following an increase in their volume of sales.
They urged the National Board of Revenue (NBR) to monitor the issue immediately for the sake of operating smooth business.
They said businesses wait whole year for the month of Ramadan when people's shopping spree gains momentum ahead of the Eid-ul-Fitr, the largest festival of the Muslim community. But hassle of VAT officials in this month is unacceptable.
They made these allegations at a programme, arranged on the occasion of the National VAT Day 2014, in the city Thursday.
They said businesses incurred significant loss due to political turbulence last year, which was not considered at the time of VAT collection. But increase in their sales in the Eid season is being considered for the same.
Commerce Minister Tofail Ahmed, chief guest of the programme, asked the taxmen not to harass the businesses and facilitate trade activities with friendly behaviour.
NBR member Farid Uddin instantly instructed all the VAT commissioners across the country to take care of the issue.
Tofail Ahmed appreciated the significant rise in internal revenue collection over the last few years.
He said all the major economic indicators are now moving positively that proves the government is successful.
Prime Minister's Economic Affairs Adviser Dr Mashiur Rahman said VAT should be paid to cooperate with the government and to expedite development work in the country.
State minister for finance and planning M A Mannan said a new VAT law will be introduced from July 1, 2015 by replacing the existing one.
It will be an advanced version of VAT law that will address the existing faults, he added.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) first vice president Monwara Hakim Ali said NBR should talk with the businesses to refurbish the VAT system.
She said a business-friendly policy will help the government increase VAT collection.
FBCCI director Abdur Razzak said the VAT law ignored the suggestions of the trade bodies, affecting the small businesses.
Businesses also alleged multiple-taxation on them. They are collecting VAT from the consumers and depositing it to the public exchequer.
"There is no law for the businessmen, under which we can bound the consumers to pay VAT," said M Rezaul Karim Robin, a leader of Bangladesh Shop Owners Association.
He said businesses have to maintain accounts for the VAT wing, bearing additional costs.