Free style VAT evading in Bangladesh

by News Desk
October 29, 2011

http://www.weeklyblitz.net/1912/free-style-vat-evading-in-bangladesh

A large number of commercial enterprises in Bangladesh are continuing to evade billions of Taka each year in Valued Added Tax [VAT]. According to existing rules, all of the retailer stores in Bangladesh are required to pay VAT on their sales proceeds. Accordingly the retailers are collecting the VAT amount from the customers, while they are refraining from paying even a fraction of the collected amount to the National Board of Revenue.

Weekly Blitz conducted a physical investigation on a number of chain stores in Bangladesh such as Meena Bazar, Agora, Shopno, Al Amin, Family World, Nandan, Family Needs, PQS, PriceHouse, 3S Shopping Mall, Prince Departmental Store, Mona Departmental Store, Maga etc. It was seen that on an average, daily sales of each of the outlets of these super stores exceed TK. 300-400 thousand, while these stores pay VAT showing sales proceeds at TK. 20-25 thousand a day. Similarly, almost ninety percent of the restaurants in the country, especially in the city do not pay even a fraction of the collected amounts of VAT. We have gathered the information on the daily sales proceeds of some of the posh and popular restaurants and fast food stores in the city:

01. Arirang Restaurant, Gulshan – TK. 200-250 thousand each day,

02. Domiok Restaurant, Banani – TK. 150-200 thousand each day,

03. Khajana, Gulshan – TK. 350-4000 thousand each day,

04. Topkapi, Gulshan – TK. 250-300 thousand each day,

05. Pizza Hut, Gulshan & Dhanmondi – TK. 400-450 thousand each day,

06. Golden Rice, Gulshan – TK. 250-300 thousand each day,

07. Steak House, Gulshan – TK. 200-250 thousand each day,

08. Samarkhand, Gulshan – TK. 250-275 thousand each day,

09. Fakhruddin Catering – TK. 300-350 thousand each day,

10. Al Rajjak Restaurant, Naya Bazar – TK. 450-500 thousand each day,

11. New Star, Kawranbazar – TK. 350-400 thousand each day,

12. Anand, BAF Shahin Shopping Complex – TK. 150-200 thousand each day,

13. Chang Pei, Moghbazar – TK. 150-200 thousand each day,

14. Thai House, Gulshan – TK. 200-250 thousand each day,

15. American Fried Chicken – TK. 150-200 thousand each day,

16. New Yorker, Banani – TK. 100-150 thousand each day,

17. Bukhara, Banani – TK. 250-300 thousand each day,

18. Steamboat, Gulshan – TK. 200-250 thousand each day,

19. Platinum Suites, Banani – TK. 150-200 thousand each day,

20. Asparagus, Gulshan – TK. 200-250 thousand each day,

21. Atrium, Baridhara – TK. 150-200 thousand each day,

22. Baton Rogue, Gulshan – TK. 100-150 thousand each day,

23. Bella Italia, Gulshan – TK. 150-200 thousand each day,

24. Candle Light, Dhanmondi – TK. 100-150 thousand each day,

25. Cheong-Shing, Banani – TK. 150-200 thousand each day,

26. Chilis, Dhanmondi – TK. 100-150 thousand each day,

27. Dish & Desert, Banani – TK. 100-150 thousand each day,

28. Efes, Gulshan – TK. 200-250 thousand each day,

29. El Toro, Gulshan – TK. 180-200 thousand each day,

30. Emmanuelle's, Gulshan – TK. 250-275 thousand each day,

31. Heritage, Gulshan – TK. 150-175 thousand each day,

32. Kasturi, Purana Paltan – TK. 250-300 thousand each day,

33. Jimbo's, Banani – TK. 150-200 thousand each day,

34. Koreana, Gulshan – TK. 150-200 thousand each day,

35. La Saigon, Gulshan – TK. 150-200 thousand each day,

36. Mainland China, Uttara – TK. 200-250 thousand each day,

37. Santoor, Dhanmondi – TK. 150-200 thousand each day,

38. Sky Room, Banani – TK. 150-200 thousand each day,

39. Sarai, Mohakhali – TK. 150-175 thousand each day,

40. White Castle, Banani – TK. 200-250 thousand each day,

41. Voot, Dhanmondi – TK. 150-175 thousand each day,

42. Western Grill, Gulshan – TK. 175-200 thousand each day,

43. Casablanca, Gulshan – TK. 100-150 thousand each day,

44. Flambe, Gulshan – TK. 150-175 thousand each day,

45. View 211, Gulshan – TK. 150-200 thousand each day,

46. Tarbush, Gulshan – TK. 100-150 thousand each day,

47. Rasna Bilash, Banani & Uttara – TK. 250-300 thousand each day,

48. Kebab Factory, Uttara – TK. 300-350 thousand each day,

49. Sajna, Uttara – TK. 200-250 thousand each day,

50. La Bamba, Uttara – TK. 250-300 thousand each day,

51. Fire On Ice, Uttara – TK. 100-150 thousand each day.

It is learnt that owners of these posh restaurants and super stores, in connivance of a section of the officials of the National Board of Revenue are continuing to evade such huge amount of revenue each year.

Meanwhile, a source within the Ministry of Finance told Weekly Blitz that an efficient intelligence team of the revenue department are investigating the alleged evasion of VAT by the private television channels. It may be mentioned here that, under the existing rules, the private television channels are collecting 15% VAT on the published value of the advertisement from the clients. It was alleged that a leading private television channel, which receives advertisement worth TK. 10-15 million per day has been continuing to evade VAT worth TK. 2-2.1 million each day. Similar allegations are also raised against other private TV channels in the country. There has also been allegation of sending the satellite transponder rentals by the private television channels through illegal "Hundi" channels. It may be mentioned here that, annual rental of a digital transponder is between US$ 250-300 thousand. None of the private TV channels have any permission or license from the Bangladesh Bank for remittance of such significant amount of foreign currency.

Related Topics:  Bangladesh News receive the latest by email: subscribe to weekly blitz's free mailing list