Collection of value added tax (VAT) from retail and wholesale businesses grew by 35.5% in the commercial areas of the capital in the recently-concluded FY23, mainly owing to widespread installation of electronic fiscal devices (EFDs) and intensified enforcement.
The Dhaka South Zone, which includes the old Dhaka, Motijheel, Shegun Bagicha, Tejgaon, Dhanmondi, Lalbagh, Kotwali, Narayanganj and Munshiganj, collected an additional Tk169 crore in VAT from retail and wholesale businesses in the last fiscal year, according to official data from the National Board of Revenue (NRB).
The aggregate VAT collection from these areas registered nearly a 20% growth, the highest among the other 12 VAT zones across the country.
Even amid the inflationary impact on product prices, both effort-based and source-based VAT collections grew by 20% each -- the highest in the last three fiscal years.
The Dhaka South Zone achieved growth rates of 18.28%, 17.20% and 15.72% in the last three corresponding fiscal years, FY21, FY20 and FY19 respectively.
Through intensified efforts, VAT officials have collected an additional Tk321 crore, while source-based VAT collection grew by Tk1,828 crore.
VAT collection from hotels and restaurants in the areas also grew by 14%, while sweetmeat shops saw an increase of 25.13%.
A statement of the Dhaka (South) Zone has mentioned that a total of 2,890 EFDs and sales data controllers (SDCs) have been installed in retail shops under the jurisdiction.
In July, the zone collected around Tk12 crore in VAT from the EFD-installed shops.
Excise duty collection in the area has increased by 9.4%, while VAT from airline tickets grew by 52.9%.
From suppliers, the VAT zone has collected 35.4 per cent more VAT, totalling Tk4,683 crore, an increase of Tk1,224 crore from last year.
From building development firms, it has collected Tk398 crore, a rise of 74.4%.
VAT collection from leases and tenants of spaces increased by 10.8% in the last fiscal year.
From advertising firms, the zone has collected Tk23.7 crore higher VAT, marking an 11.8% increase.
Electricity consumers in this area have paid 24.8% more VAT, totalling Tk94.3 crore in FY23.
Under the Dhaka (South) Zone, there were a total of 110,692 business identification numbers (BINs) in FY23, up from 88,775 in the previous year.
Online submission of VAT returns also grew by 29% last year under the zone.