NBR slaps 4pc VAT on Parjatan's liquor sales

The National Board of Revenue has asked its field offices to collect 4 percent trade value-added tax on sales of liquor and alcoholic beverages by the Bangladesh Parjatan Corporation to local bars, restaurants and hotels.

The revenue authority in a letter on March 5 said the BPC imports cigarettes and alcoholic beverages duty-free and sells liquor to local bars and restaurants by factoring in the import duty.

However, a big gap prevails between the assessed value and the selling price of the items imported and sold by the BPC, the NBR said. Value addition takes places in this case and a 4 percent trade VAT is applicable on the sales prices of liquor, said the NBR.

A senior official of the NBR said VAT is collected on liquor sales at local bars, hotels and restaurants.

“However, we did not get the actual amount of VAT from this area as VAT was collected on the assessed value of liquor and not the sales prices,” he said, while expecting higher amounts of revenue following the move.