Bring all unregistered business entities under tax net

NBR asks field offices

The National Board of Revenue (NBR) has decided to bring all the unregistered business entities under the tax net through their registration, reports UNB.
“The Board has given a directive in this regard to all of its field offices to register the business entities under their jurisdiction,” a senior NBR official told the news agency.
The NBR also asked the field offices to intensify their activities for unearthing the cases of VAT evasion through scrutiny. NBR chairman M Nojibur Rahman recently gave the directives to field-level VAT offices in this regard apart from asking its scrutiny department to be proactive.
“We’re under pressure to achieve our target for the current fiscal as we have given a target to collect this time,” the official said.
The NBR has got a gigantic target of Tk 176,370 crore revenue collection for the 2015-16 fiscal against Tk 135,028 last year.
This year, the target was set to collect Tk 64,971 crore from income tax, while Tk 64,262 crore from VAT and Tk 18,752 from import duty. The target for export duty has been fixed at Tk 37 crore, excise duty at Tk 1,239 crore and supplementary duty at Tk 25,875.
A couple of months back, Finance Minister AMA Muhith addressing a programme on VAT Day voiced frustration seeing only 60,000 organisations pay VAT. He asked the NBR officials to take effective measurers and create mass awareness in this regard as VAT is still an unpopular affair in the country. “I think, 3-6 lakh organisations which are eligible to pay VAT,” he told the programme.
The NBR has asked its field offices to conduct surveys in their respective areas quickly to net the eligible taxpayers, both income tax and VAT.
According to NBR statistics, a number of 750,797 entities are enlisted under the VAT and of them only 84,800 submit their VAT papers regularly, which is only five percent of the total number.
The number of trading houses under the VAT coverage is around 100,000 and only 12,000 houses submit their VAT papers regularly.
The rest of the trading houses collect VAT from consumers, but do not pay the VAT to the NBR. “We assume that the amount of VAT evasion by such business houses is thousands of crores of taka,” the NBR official said.
He also said the VAT and Supplementary Duty Act-2012 will be applicable from July next year.
After the enforcement of this Act, the VAT collection will go online which will reduce the hassles of the VAT payers apart from making submission of VAT papers easier.
The NBR has also taken a programme to collect the information about the trade license holders of the city corporation and metropolitan areas.
“The NBR will screen which business entity is giving how much revenue with this information,” the official said.
The NBR will then open file against the eligible business entities evading tax.

Bring all unregistered business entities under tax net

NBR asks field offices

The National Board of Revenue (NBR) has decided to bring all the unregistered business entities under the tax net through their registration, reports UNB. The Board has given a directive in this regard to all of its field offices to register the business entities under their jurisdiction, a senior NBR official told the news agency. The NBR also asked the field offices to intensify their activities for unearthing the cases of VAT evasion through scrutiny. NBR chairman M Nojibur Rahman recently gave the directives to field-level VAT offices in this regard apart from asking its scrutiny department to be proactive. Were under pressure to achieve our target for the current fiscal as we have given a target to collect this time, the official said. The NBR has got a gigantic target of Tk 176,370 crore revenue collection for the 2015-16 fiscal against Tk 135,028 last year. This year, the target was set to collect Tk 64,971 crore from income tax, while Tk 64,262 crore from VAT and Tk 18,752 from import duty. The target for export duty has been fixed at Tk 37 crore, excise duty at Tk 1,239 crore and supplementary duty at Tk 25,875. A couple of months back, Finance Minister AMA Muhith addressing a programme on VAT Day voiced frustration seeing only 60,000 organisations pay VAT. He asked the NBR officials to take effective measurers and create mass awareness in this regard as VAT is still an unpopular affair in the country. I think, 3-6 lakh organisations which are eligible to pay VAT, he told the programme. The NBR has asked its field offices to conduct surveys in their respective areas quickly to net the eligible taxpayers, both income tax and VAT. According to NBR statistics, a number of 750,797 entities are enlisted under the VAT and of them only 84,800 submit their VAT papers regularly, which is only five percent of the total number. The number of trading houses under the VAT coverage is around 100,000 and only 12,000 houses submit their VAT papers regularly. The rest of the trading houses collect VAT from consumers, but do not pay the VAT to the NBR. We assume that the amount of VAT evasion by such business houses is thousands of crores of taka, the NBR official said. He also said the VAT and Supplementary Duty Act-2012 will be applicable from July next year. After the enforcement of this Act, the VAT collection will go online which will reduce the hassles of the VAT payers apart from making submission of VAT papers easier. The NBR has also taken a programme to collect the information about the trade license holders of the city corporation and metropolitan areas. The NBR will screen which business entity is giving how much revenue with this information, the official said. The NBR will then open file against the eligible business entities evading tax.