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NBR to probe VAT evasion allegations in DITF

  • Published at 06:24 pm February 11th, 2016
NBR to probe VAT evasion allegations in DITF

The National Board of Revenue has decided to form a probe committee to dig deeper into the allegations that the participants in Dhaka International Trade Fair (DITF) evaded Value Added Tax.

The three-member committee will analyse participants’ sales documents and the VAT payment receipts.

Officials said the NBR had taken the decision as VAT collection figure was found less compared to the rise of sales this year.

The Customs, Excise and VAT commissionerate, Dhaka (west), has sent a letter to Export Promotion Bureau (EPB), the fair organising body, seeking its support to the investigation.

In the letter, NBR requested the EPB to send a list of all the participating traders along with contact addresses.

Once the list comes to the NBR’s hand, the committee will send a letter to all the participants to submit their sales documents and the VAT payment receipts, officials said.

A total of 553 stalls and pavilions were allocated to the traders and foreign exhibitors under 13 categories in the month-long event that ended on January 31, said organisers adding that the revenue board mobilised Tk2.46 crore Vat from the fair.

According to NBR officials, small traders paid an average of Tk1,500 VAT daily while pavilions paid an average of Tk6,000 Vat daily.

However, the amount should be much higher if the increased of sales is taken into account.

The month-long fair witnessed a sale of Tk121.47 crore this year with an increase of Tk71 crore from the previous year’s sales.

The DITF also received export orders of Tk235 crore from international retailers compared to Tk85 crore from last year’s event, said officials.

They said the export order increased by 176% this year from one year ago.

The NBR targets to collect Tk1,76,370 crore revenue, including Tk64,262 crore VAT this fiscal year.

The board has become very desperate to reach the revenue target set for the fiscal year and is, therefore, looking for new sources like the DITF to boost VAT collection.