46 big firms likely under LTU VAT net

The Large Taxpayer Unit (LTU) under the National Board of Revenue (NBR) is working to bring 46 big companies under the large Value Added Tax (VAT) payer category as it thinks they qualify to be there.

A company paying Tk 10 crore in annual VAT on average is supposed to be in this category.

Analysing the VAT payment data, the LTU found there are about 46 heavyweight companies in the country paying over Tk 10 crore each in VAT under different commissionerates across the country.

The LTU recently wrote to NBR Chairman Abu Hena Md Rahmatul Muneem, saying it wants to bring these 46 companies under its net.

Of them, two are of Square Group, three of ACI Group, seven of Akij Group, one of Bashundhara Group, seven of Transcom Group, four of BRB, two of Singer Bangladesh, three of LG, and two of Marico.

The other companies are British American Tobacco Bangladesh, China-Bangla Ceramic Industries (Unit-2), bKash, Saudia airline, Asian Paints, Bangladesh Submarine Cable Company, Summit Communications, Bangladesh Honda Private Limited, James Finlay Bangladesh, Al-Arafah Islami Bank, IFIC Bank, One Bank, Rupali Bank, UCB, and Mutual Trust Bank.

NBR Member (VAT policy) Masud Sadiq told The Business Post the revenue board was yet to make a decision on whether these companies would be brought under the LTU.

“The LTU now deals with 110 companies. We will decide whether adding the 46 companies will create additional pressure on it. A meeting will be held in December in this regard,” he said.

He said the LTU would need additional manpower if more companies were brought under its net, and there might be other problems as well.

The NBR says the LTU collects about 60 per cent of the total VAT target. 34 heavyweight organisations recently moved out of the LTU net as their revenues had declined, but no new company was included.

LTU officials said revenue collection would increase by Tk 200 crore a year if 20 of the 46 companies were brought under the unit.

The LTU wants Square Group’s Square Food and Beverage and Square Toiletries under its net.

The LTU wants seven Akij Group companies under its net – Akij Particle Board Mills, Akij Printing and Packages, Akij Ceramics, Akij Biax Films, Akij Bakers, Akij Steel Mills, and Akij Poly Fibre Industries.

Each firm paid above Tk 10 crore in vat in the last fiscal year.

LTU wants Bashundhara Paper of Bashundhara Group under its net. It paid Tk 14 crore in VAT in FY20 and Tk 12 crore in FY21.

The LTU wants seven Transcom Group companies under its net. They include - Transcom Beverage ,Transcom Beverage Depot and Transcom Consumer Products.

The LTU wants four companies of BRB under its net. They are BRB Cable Industries, Kiam Metal Industries, MRS Industries and BRB Polymer.

British American Tobacco Bangladesh is also likely to be brought under the Vat LTU.

Marico Bangladesh of Marico is currently under the LTU. Two more Marico companies are under Dhaka North VAT Commissionerate, and the LTU wants them under its net.

China-Bangla Ceramic Industries of China Bangla Group of Companies is already under the LTU net. The LTU now wants China Bangla Ceramic Industries (Unit-2), which is currently under Dhaka East VAT Commissionerate.

The LTU wants mobile financial services provider bKash under its net. bKash paid Tk 241 crore in VAT in FY20 and Tk 323 crore in FY21.

The LTU wants Saudia airline, which paid Tk 122 crore in VAT in FY20 and Tk 36 crore in FY21.

The LTU wants Asian Paints and Bangladesh Submarine Cable Company under its purview.

Besides, Summit Communications, Bangladesh Honda Private Limited, and James Finlay Bangladesh are also being planned to bring under the LTU Vat.

The LTU wants six banks under its net. They are Arafah Islami Bank, IFIC Bank, One Bank, Rupali Bank, UCB and Mutual Trust Bank.