NBR strengthens scrutiny to check VAT evasion

The National Board of Revenue (NBR) has taken some measures to prevent VAT (Value Added Tax) evasion through strengthening its scrutiny, aiming to achieve the revenue collection target, reports UNB.
It has made it mandatory for its field level offices to inform updated information of Value Added Tax (VAT) evading errant organizations and individuals to the respective member on weekly basis.
Apart of this, the revenue collecting authority has asked the field level offices to give report against its officials who are involved in this ill practice.
“The NBR has taken this harsh decision in a meeting on Budget Implementation with its chairman M Nojibur Rahman in the chair,” a senior official of the NBR told UNB.
He said that the NBR has taken the decision aiming to seal the loopholes of the VAT evasion as the target for the VAT collection is the highest in the current fiscal.
“We have taken the target as a challenge and we are working hard to achieve it,” he said adding that by this way the NBR will be able to increase its supervision on the sector.
The NBR has got a gigantic target of Tk 2,03,212 crore which is 35.4 percent higher than the revised target of the 2015-16 fiscal. Vat will be the biggest contributor with Tk 72,764 crore. Tk 71,940 crore will come from income tax and tax on profit, supplementary duty will contribute Tk 30,075 crore, excise duty Tk 4,449 crore, export duty Tk 44 crore and other taxes and duties will contribute Tk 1,428 crore.
In 2015-16 fiscal the target for VAT was Tk 64,263 crore. The NBR official said the NBR chairman has asked the field offices to regularly check VAT-19 submit papers, VAT waivers for the entities that got VAT waivers, identify the evasion at source of VAT points and collect the VAT, and communicate with the Customs House for realising the advance trading VAT.
He also said the VAT and Supplementary Duty Act-2012 will be applicable from July next. After implementing this Act, the collection of VAT will go online which will reduce hassles of the VAT payers apart from making submission of VAT papers easy.
“Then it’ll be easy to take actions against the VAT evading entities,” he said.
In many countries, the NBR official said, the indirect tax is very negligible in the total revenue collection. “But this amount is very much high in our country,” he said.
On the other hand, the NBR has introduced online VAT registration for the business entity that have an annual turnover of less than Tk 30 lakh as there will be no such registration from the field offices aiming is to implement the new VAT law 2012 in an automated environment and provide better services to taxpayers, increase revenue collection and ensure transparency and accountability in revenue administration.
Companies that already have Business Identification Number (BIN) will have to re-register online within June 30 to be able to file returns online from fiscal 2017-18.
Some 310 firms, including the companies under the Large Taxpayers Unit of VAT, have already re-registered online to get a nine-digit BIN, which will replace the existing 11-digit BINs after the VAT and Supplementary Duty Act 2012 comes into effect in July this year.
The latest law, which will replace VAT Act 1991, envisages a flat 15 percent VAT rate instead of various types of rates that are in effect at present.

NBR strengthens scrutiny to check VAT evasion

The National Board of Revenue (NBR) has taken some measures to prevent VAT (Value Added Tax) evasion through strengthening its scrutiny, aiming to achieve the revenue collection target, reports UNB. It has made it mandatory for its field level offices to inform updated information of Value Added Tax (VAT) evading errant organizations and individuals to the respective member on weekly basis. Apart of this, the revenue collecting authority has asked the field level offices to give report against its officials who are involved in this ill practice. The NBR has taken this harsh decision in a meeting on Budget Implementation with its chairman M Nojibur Rahman in the chair, a senior official of the NBR told UNB. He said that the NBR has taken the decision aiming to seal the loopholes of the VAT evasion as the target for the VAT collection is the highest in the current fiscal. We have taken the target as a challenge and we are working hard to achieve it, he said adding that by this way the NBR will be able to increase its supervision on the sector. The NBR has got a gigantic target of Tk 2,03,212 crore which is 35.4 percent higher than the revised target of the 2015-16 fiscal. Vat will be the biggest contributor with Tk 72,764 crore. Tk 71,940 crore will come from income tax and tax on profit, supplementary duty will contribute Tk 30,075 crore, excise duty Tk 4,449 crore, export duty Tk 44 crore and other taxes and duties will contribute Tk 1,428 crore. In 2015-16 fiscal the target for VAT was Tk 64,263 crore. The NBR official said the NBR chairman has asked the field offices to regularly check VAT-19 submit papers, VAT waivers for the entities that got VAT waivers, identify the evasion at source of VAT points and collect the VAT, and communicate with the Customs House for realising the advance trading VAT. He also said the VAT and Supplementary Duty Act-2012 will be applicable from July next. After implementing this Act, the collection of VAT will go online which will reduce hassles of the VAT payers apart from making submission of VAT papers easy. Then itll be easy to take actions against the VAT evading entities, he said. In many countries, the NBR official said, the indirect tax is very negligible in the total revenue collection. But this amount is very much high in our country, he said. On the other hand, the NBR has introduced online VAT registration for the business entity that have an annual turnover of less than Tk 30 lakh as there will be no such registration from the field offices aiming is to implement the new VAT law 2012 in an automated environment and provide better services to taxpayers, increase revenue collection and ensure transparency and accountability in revenue administration. Companies that already have Business Identification Number (BIN) will have to re-register online within June 30 to be able to file returns online from fiscal 2017-18. Some 310 firms, including the companies under the Large Taxpayers Unit of VAT, have already re-registered online to get a nine-digit BIN, which will replace the existing 11-digit BINs after the VAT and Supplementary Duty Act 2012 comes into effect in July this year. The latest law, which will replace VAT Act 1991, envisages a flat 15 percent VAT rate instead of various types of rates that are in effect at present.