NBR to watch over Eid sales to check VAT dodging

The National Board of Revenue yesterday asked field offices dealing value-added taxes to monitor sales at restaurants and shops at malls and markets to ensure collection of the actual indirect tax.

The directive came after the government loosened rules for the shops in the markets and shopping centres so that they can be opened for limited hours on the occasion of Eid-ul-Fitr, the biggest shopping season in Bangladesh.

In the directive, signed by NBR Member VAT Implementation and IT Md Jamal Hossain, the revenue watchdog said already some large shopping malls and shops have reopened.

The administration asked revenue officials to remain active in monitoring the restaurants and shops that brought Tk 375 crore to the state coffer in fiscal 2017-18.

The amount was less than 0.5 per cent of the total VAT and supplementary duty of Tk 78,694 crore collected in the year.

"The monitoring should be done through telephone, message, e-mail and social media," said the NBR, adding that required measures and social distancing should be maintained in case anyone is required to visit any restaurant or shop.

Also known as consumption tax paid by end consumers, VAT is the biggest source of revenue for the government.

The NBR has been assigned to collect Tk 11,7671 crore this fiscal year. Until March, it collected Tk 64,111 crore.

Shops and shopping centres can be kept open from 10 am to 4 pm by ensuring physical distance inside shops, complying with other heath rules and ensuring hand sanitisers at the entrance as suggested by the health ministry, said the commerce ministry in a statement yesterday.

The commerce ministry also asked all shop owners and the Federation of Bangladesh Chambers of Commerce and Industry and other chambers to take measures in this regard.