Dhaka, Friday, February 23, 2018

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19pc growth in LTU-VAT collection in 6 months

DHAKA, Feb 10, 2018 (BSS)-Revenue collection under the Large Taxpayer Unit (LTU) of Value Added Tax (VAT) witnessed a 19 percent growth in the first six months of fiscal 2017-18, removing fear for a fall in revenue mobilization due to non-implementation of the new VAT law.

During the July-December period of FY18, LTU collected Tk 19,874 crore, up Tk 3,136 crore from the same period of the previous fiscal year (2016-17).

"There was fear of a shortfall in revenue collection due to non-implementation of the new VAT law but we've been able to remove this concern. LTU usually collects 56 percent of the total revenue collected target," said VAT LTU commissioner Md Matiur Rahman.

Talking to BSS, he said it has been possible to achieve higher growth in revenue collection because it has taken a time-befitting strategy and intensified supervision, VAT auditing and recovery of arrears.

He said the LTU realized a significant amount of outstanding VAT from Petrobangla, mobile-phone operators and other establishments.

Rahman said different establishments get tax waiver from the National Board of Revenue (NBR) but some others are dodging tax on various excuses. "We've already been able to identify such some cases and a significant amount of VAT has been collected from such establishments," he added.

At present, LTU looks after VAT, supplementary duty and excise duty of a total 170 larger taxpaying establishments. Revenue worth Tk 36,983.50 crore was mobilized under LTU in FY17.

The government has targeted to mobilize Tk 91,254 crore as VAT in FY18.

The government announced enforcement of Value Added Tax (VAT) and Supplementary Duty (SD) Act, 2012 from July 1 last year but suspended the plan for two years responding to the request of the business community.