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Slipping raw material imports choke revenue

Staff Correspondent
06 Dec 2023 21:52:27 | Update: 06 Dec 2023 21:52:27
Slipping raw material imports choke revenue
File photo of the Chattogram port — Shamsul Haque Ripon

Raw material imports in Bangladesh have witnessed a significant decline amid ongoing economic headwinds and a persisting crunch of foreign exchange, which in turn has negatively impacted the country’s revenue collection.

The reduction in raw material imports is as high as 30 per cent in some sectors, but the National Board of Revenue (NBR) has increased tax collection using strategic measures, said NBR Member (VAT implementation & IT) Moinul Khan.

Speaking at a press conference on VAT day and VAT Week 2023, held at the capital’s NBR office on Wednesday, he added, “Due to such measures, revenue collection from VAT has maintained an over 17 per cent growth in the July-November period of FY24, compared year-on-year.

“After installing Electronic Fiscal Devices (EFDs), VAT collection has surged to an average of Tk 50,000 per shop, up from the previous Tk 4,000 to Tk 5,000. This process has improved transparency in tax collection as well.”

At the event, Moinul mentioned plans to rapidly deploy more EFD machines, targeting 60,000 establishments this FY, both at the district and sub-district levels.

Discussing the trend of not taking receipts after purchases, NBR Chairman Abu Hena Md Rahmatul Muneem said, “If people take their purchase receipts, responsibility will increase among both the buyers and sellers, which will help increase VAT collection of the bureau.

Board officials and VAT wing officials were present at the conference.

Top VAT payers to be awarded on Dec 10

The NBR will observe National VAT Day next Sunday and VAT Week will be observed from December 10 to December 15.

The events aim to increase awareness among taxpayers about VAT, encourage VAT collection from consumers, enhance efficiency in VAT payments, and improve the quality of service provided by VAT officials, said the NBR chairman.

On VAT Day, the revenue board will award the top nine VAT depositor companies for their highest contribution in FY22. The revenue board issued a notification revealing the top VAT depositors back on Wednesday.

In the manufacturing category, Olympic Industries, one of the largest biscuit manufacturers in the country, Unimed Unihealth Pharmaceuticals Ltd and General Pharmaceuticals Ltd deposited the highest amount of VAT paid by the consumers to the national exchequer.

Olympic Industries was also renamed as the highest VAT payer in the previous FY.

In the trading category, the country’s electronics maker Walton and super shop chain Unimart are also renamed as the highest VAT payers to the national coffer for the second consecutive year.

Hamco Corporation, an automotive battery and solar inverter maker, is named as the third highest VAT payer for FY22 under this category. Hamco, also in FY21, was one of the largest taxpayers from Dhaka district.

In the services category, the country’s largest two mobile financial service providers, bKash and Nagad, secured their positions as two of the top three VAT paying companies, while Aarong is the third one in this category.

In another notification, the NBR also announced 138 companies as the top VAT depositors at district level. Of which, 22 companies – in three categories – were selected as the highest VAT payers for the same FY.

The NBR has been announcing the names of the highest VAT depositing companies publicly in accordance with a policy framed in 2005 to promote corporate compliance.