• Thursday, Jan 23, 2020
  • Last Update : 04:04 pm

NBR likely to refuse Rab on Vat collection drive

  • Published at 07:35 pm January 17th, 2016

The National Board of Revenue is going to refuse Rapid Action Battalion’s proposal of mobile court drive against value added tax evasion as the law doesn’t allow that.

The elite force of police came up with the proposal recently to prevent tax dodging as it said such drive had proved successful in other areas. Rab proposed inclusion of Vat Act 1991 in the schedule of the Mobile Court Act 2009.

The proposal also sparked widespread criticisms among different quarters, including the business community. The Metropolitan Chamber of Commerce and Industry described it as “dangerous” with a demand of halting any such move.

In such a situation, the NBR has decided not to entertain the proposal from Rab as it may create complexities in the revenue collection system.

Besides, the NBR officials said the Vat department itself has the capacity to prevent revenue leakage and other’s intervention is not necessary.

As per the Vat Act 1991, the law enforcing agencies can only provide cooperation, if sought for, to Vat officials in collection of tax.

The law says a Vat official, not below the rank of an assistant commissioner, can conduct drive and seek cooperation from government bodies including police to discharge their duties under the act. The law enforcing agencies are bound to extend cooperation.

When asked, NBR Chairman Nojibur Rahman said the revenue authorities were taking every step in partnership with the businesses and the Rab in no way could be engaged with the process.

“Rab will be a new organisation in the process. We are not considering their proposal. The law enforcement agencies will help NBR as much as the laws allow,” he said.