Home Corporate Tk 22,000cr VAT trapped in net of lawsuits
Corporate - February 6, 2023

Tk 22,000cr VAT trapped in net of lawsuits

Ibrahim Khalil Jewel: The VAT department of the National Board of Revenue (NBR) is struggling with the complexity of the lawsuits. While 37 percent of NBR’s revenue had been targeted in the current fiscal year from the VAT department, but Tk 22,000 crore VAT revenue is trapped in the net of litigation.
Against 8,745 cases under the 12 field offices of the National Board of Revenue (NBR), that money has been unpaid for a long time. Among these cases, 2,521 cases are pending in the High Court. With which the VAT department owes Tk 17 thousand 329 crore 81 lakh as VAT to various companies.
Short-term dispute resolution process or Customs and VAT Appellate Tribunal under ADR or NBR were not able to reduce the complexity of cases. Various initiatives of NBR are also collapsing. Companies are more interested in seeking the help of the highest court– the High Court. NBR statistics indicate that.
Against 8 thousand 745 cases under the 12 field offices of the NBR, about 22 thousand crore taka have been unpaid for a long time. Among these cases, 2 thousand 521 are awaiting resolution in the High Court. With which the VAT department owes Tk 17 thousand 329 crore 81 lakh as VAT to various companies.
According to the latest data of NBR’s VAT department, a total ofTk 21 thousand 934 crore 38 lakh of revenue is withheld against 8,745 VAT or VAT related cases. Tk13 thousand 663 crore 82 lakh is stuck under the big tax payer unit (musak) of the company. Where the number of pending cases is 601. But under this office cigarettes, mobile phones, medicines, banks, gas, electricity distribution, soft drinks, soap, cement and water supply companies pay VAT.
The next position is Dhaka South Customs, Excise and VAT Commissionerate. The total number of cases under this office is 1,553. Against these cases, VAT of Tk 2,738 crore 47 lakh is unpaid. On the other hand, under Dhaka North Customs, Excise and VAT Commissioner, Tk1,861 crore 47 lakh worth of VAT is stuck under 1,186 cases.
Against 926 cases under the Dhaka East Customs, Excise and VAT Commissionerate, Tk905 crore 20 lakh, on the other hand, against 923 cases under the Dhaka West Customs, Excise and VAT Commissionerate, the VAT due is Tk623 crore 4 lakh.
Similarly, 288, 535, 565, 683, 806, 337 and 342 cases under Chittagong, Rajshahi, Khulna, Sylhet, Jessore, Rangpur, Cumilla Customs, Excise and VAT Commissionerate respectivelyTk 516.49, 454.18, 206.92, 193.15, 608 and 39.08 crore have been stuck.
Regarding the tangle of cases, NBR member (VAT audit) Md. Sahidul Islam said that NBR has taken various initiatives to reduce the tangle of cases. Field offices have been directed to speed up disposal of cases through more effective ADR (Alternative Dispute Resolution) system. It has been possible to reduce cases a little more than before.

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