NBR Software at banks to prevent VAT dodging

Golam Mowla
Published : 06:00, Jul 10, 2018 | Updated : 06:00, Jul 10, 2018

NBR officeTo prevent VAT dodging, NBR is establishing software at commercial banks of the country. Initially, the software will be featured in 17 banks, including four state-owned ones, according informed sources at the Large Tax Units, LTU, of the National Board of Revenue, NBR.
Previously, experimental software was established to prevent tax dodges and to bring operational transparency.
A recently made LTU report mentioned irregularities in VAT submission into government treasury.
The report added that almost all banks avoid VAT at source for years and this is increasing due to absence of monitoring.
Talking on the issue, LTU Commissioner Md Motiur Rahman, says: “Initially this has been established at Janata Bank; we are getting positive response and, gradually, the software will be incorporated in all institutions.”
Hopefully this will prevent VAT dodging, he stated.
The report mentioned that against 39 banking services, there are provisions for 450 per cent VAT charges at source.
But since banks are not charging the VAT at source, with the help of technology, the government is losing revenue.
LTU gave letters to banks, asking for all VAT related documents.
Later, 11 banks gave the papers which showed that one bank submitted only Tk. 50 lakh. The LTU then launched investigation and found VAT submission incongruities at state owned Agrani Bank.
State owned banks: Sonali, Agrani, Janata and Rupali are under LTU while the privately owned ones are: Uttara, Prime, SCB, National, BRAC, Islami, AB, Dutch Bangla, Premier, Asia, HSBC and Southeast.