Rab seeks to operate mobile court against VAT dodgers

The Rapid Action Battalion (Rab) has requested the National Board of Revenue to include the current VAT Act 1991 in the Mobile Court Act 2009 so that its executive magistrates can conduct drive against VAT evaders.

Rab sent a letter to NBR chairman towards the end of October.

The letter said there are allegations that some businesses do not deposit the VAT collected from their customers to the state coffer properly. It is compulsory to use electronic cash registers or point of sales to issue sales receipts for 11 types of service providers, as well as large and medium businesses. The letter said the rule is not properly followed in many cases.

As a result, the government is deprived of huge amounts of revenue, it said.

Rab said the mobile courts, conducted by its executive magistrates, have received appreciation from all quarters for drives against various offences such as food adulteration, fake doctors and illegal blood banks.

As the VAT Act 1991 is not included in the schedule of the Mobile Court Law 2009, it is not possible to operate a drive against VAT evasion.

“As a result, the tendency to evade VAT is rising day by day on one hand, and on the other, the government is deprived of its expected amount of revenue.”

NBR Chairman Md Nojibur Rahman said they will examine the matter.