Four telcos claim Tk 426cr VAT rebate unlawfully: NBR
Four mobile phone operators have unlawfully claimed Tk 426 crore as VAT rebate since 2012, said the National Board of Revenue.
Of the sum, Robi claimed Tk 237 crore, Grameenphone Tk 99.94 crore, Banglalink Tk 78.99 crore and state-run Teletalk Tk 15.16 crore on various VAT exempt and tariff value-based goods and services, which is not permitted by law.
Businesses can claim VAT rebate on raw materials on grounds that the money has already been paid in advance.
The Large Taxpayers Unit, the NBR's field office that collects taxes from the operators, sought refund of the amount to the state coffer, which the carriers refused to.
Instead, they went to the Customs Excise & VAT Appellate Tribunal to challenge the LTU's decision, said officials.
"We have already disallowed the rebate claimed by the operators. So, the operators will have to deposit the money to the exchequer," said a senior LTU official.
LTU VAT Commissioner Md Matiur Rahman said his office initially sought explanations from the operators, after which they arrived at the conclusion that the VAT rebate claims were unlawful.
Robi, Banglalink and Teletalk did not respond to request for comment on the matter, while Grammeenphone declined to do so without knowing full details.
The disclosure of the four operators' unlawful VAT rebate claim came at a view exchange meeting and press conference organised yesterday by the LTU with the view to sharing its fiscal 2016-17 collection figure and its target for this fiscal year.
The NBR field office, which typically accounts for 55 percent of the total VAT collected from domestic businesses in a year, logged in Tk 36,972 crore for fiscal 2016-17, up 21 percent year-on-year.
At the programme, the LTU also unveiled its plan to realise Tk 10,000 crore in arrears, particularly from state-run gas companies. It is also looking to realise Tk 4,017 crore through settlement of cases at the court.
"We have realised quite a good amount of arrear taxes last fiscal year. That is why we could collect revenues higher than our target," Rahman said.
This year, the LTU wants to collect at least Tk 8,000 crore by realising arrears and through legal battles, he said.
For fiscal 2017-18, the LTU has been tasked with collecting Tk 50,000 crore, which is 35 percent higher than its collection last fiscal year.
Rahman urged the NBR high-ups to increase the capacity of his field office and get more big firms listed with the view to collecting higher revenue.
Some 170 big firms dealing with cigarettes, energy and gas, mobile phones, banks, pharmaceuticals and fast moving consumer goods are listed under the LTU. Of them, 157 are active.
After the programme, Bangladesh Insurance Association Chairman Sheikh Kabir Hossain and Deputy Editor of Samakal Abu Sayeed Khan also spoke.
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