LTU-VAT collection marks 19pc growth in 6 months

Collection of revenue under Large Taxpayer Unit (LTU) of Value Added Tax (VAT) has witnessed a staggering 19 per cent growth in first six months of fiscal 2017-18.

LTU collection reached Tk 198.74 billion, up Tk 31.36 billion from the same period of the previous fiscal year (2016-17), during the July-December period of FY18.

The hefty collection in the government exchequer said to have removed fear for a fall in revenue mobilisation due to non-implementation of the new VAT law, said BSS.

According to VAT LTU commissioner Md Matiur Rahman, "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.”

The large taxpayer unit usually collects 56 per cent of the total revenue target, he noted.

He thinks achieving higher growth in revenue collection has been possible as authorities concerned have taken time-befitting strategy and intensified supervision, VAT auditing and recovery of arrears.

LTU, he said, realised a significant amount of outstanding VAT from Petrobangla, mobile phone operators and other big ones.

The official said different establishments enjoy tax exemption from the National Board of Revenue (NBR) while some others keep dodging tax on various pretexts.

"We've already been able to identify some relevant cases and a significant amount of VAT has been collected from such establishments," he divulged.

LTU currently looks after VAT, supplementary duty and excise duty of 170 larger taxpaying establishments. FY17 witnessed mobilisation of revenue worth Tk 369.83 billion under LTU.

In FY18, the government has a target to mobilise Tk 912.54 billion as VAT.

The government announced enforcement of VAT and Supplementary Duty (SD) Act-2012 from July 1 last year, but suspended the plan for two years in the face of request from the businesses.