Rapid Action Battalion has made a proposal to the National Board of Revenue for conducting drives against tax dodgers through the mobile courts in a bid to prevent tax evasion and accelerate revenue collection.
In a recent written proposal to the revenue board chairman, RAB director general Benazir Ahmed requested for inclusion of the Value-Added Tax Act-1991 in the schedule of the Mobile Court Act-2009 so that executive magistrates of the law enforcing agency can conduct drives against VAT dodgers.
He also forwarded a copy of the proposal to the home ministry under which the mobile court act works.
In the letter, Benazir said the drives under the mobile court act conducted by the RAB executive magistrates were being praised by cross section of people for its success in preventing various offences including food adulteration, fake doctor, selling date expired and counterfeit medicine and cosmetics, clinic and diagnostic centre without licence and illegal blood banks.
RAB mobile courts cannot conduct drives to prevent VAT related offices as the VAT act is not included in the schedule of mobile court act, he said.
‘As a result, VAT evasion tendency has been increasing over the years and the government is losing huge amount of revenue,’ the letter stated.
There are allegations that traders at shopping malls at divisional cities and district headquarters do not deposit VAT collected from the consumers, it said.
Business entities identified by the revenue board are not installing and using electronic cash register and point of sales terminals in line with the order of the NBR, causing significant revenue loss of the government, it added.
In this context, RAB executive magistrates will be able to conduct mobile courts for preventing such offences with the coordination of the VAT and customs officials if the VAT act is included in the schedule of the mobile court act, RAB said in its proposal.
Such initiative will prevent VAT evasion, increase awareness among the traders about the revenue payment, protect interest of consumers and help in achieving revenue collection target of the NBR, it said.
Officials of the revenue board said that VAT policy wing of the NBR would scrutinise the proposal and take next step on the matter.
They said that under the existing VAT act, NBR officials can seek cooperation of law enforcing agencies including police and Border Guard Bangladesh to discharge their duties under the act and law enforcing agencies are bound to extend cooperation.
Now, it is up to the high-ups of the government whether they will entertain the proposal of RAB or not, the officials added.
The revenue board should consider the consequences including the possible reaction of taxpayers about conducting drives by mobile courts wherein taxpayers frequently alleges about harassment against the VAT intelligence while conducting drives, thy said.
Earlier in May, some field-level officials of the income tax wing of the NBR also made such proposal for facilitating drives by the mobile courts against the business people and professionals who do not display the income tax certificates at business offices and chambers.
Income tax policy wing then did not consider the proposal.
In a recent written proposal to the revenue board chairman, RAB director general Benazir Ahmed requested for inclusion of the Value-Added Tax Act-1991 in the schedule of the Mobile Court Act-2009 so that executive magistrates of the law enforcing agency can conduct drives against VAT dodgers.
He also forwarded a copy of the proposal to the home ministry under which the mobile court act works.
In the letter, Benazir said the drives under the mobile court act conducted by the RAB executive magistrates were being praised by cross section of people for its success in preventing various offences including food adulteration, fake doctor, selling date expired and counterfeit medicine and cosmetics, clinic and diagnostic centre without licence and illegal blood banks.
RAB mobile courts cannot conduct drives to prevent VAT related offices as the VAT act is not included in the schedule of mobile court act, he said.
‘As a result, VAT evasion tendency has been increasing over the years and the government is losing huge amount of revenue,’ the letter stated.
There are allegations that traders at shopping malls at divisional cities and district headquarters do not deposit VAT collected from the consumers, it said.
Business entities identified by the revenue board are not installing and using electronic cash register and point of sales terminals in line with the order of the NBR, causing significant revenue loss of the government, it added.
In this context, RAB executive magistrates will be able to conduct mobile courts for preventing such offences with the coordination of the VAT and customs officials if the VAT act is included in the schedule of the mobile court act, RAB said in its proposal.
Such initiative will prevent VAT evasion, increase awareness among the traders about the revenue payment, protect interest of consumers and help in achieving revenue collection target of the NBR, it said.
Officials of the revenue board said that VAT policy wing of the NBR would scrutinise the proposal and take next step on the matter.
They said that under the existing VAT act, NBR officials can seek cooperation of law enforcing agencies including police and Border Guard Bangladesh to discharge their duties under the act and law enforcing agencies are bound to extend cooperation.
Now, it is up to the high-ups of the government whether they will entertain the proposal of RAB or not, the officials added.
The revenue board should consider the consequences including the possible reaction of taxpayers about conducting drives by mobile courts wherein taxpayers frequently alleges about harassment against the VAT intelligence while conducting drives, thy said.
Earlier in May, some field-level officials of the income tax wing of the NBR also made such proposal for facilitating drives by the mobile courts against the business people and professionals who do not display the income tax certificates at business offices and chambers.
Income tax policy wing then did not consider the proposal.
Source: New Age
A very bold out-of-box proposal by RAB to help enhance revenue collection from VAT dodgers. Hats off to RAB. How about putting RAB in charge of monitoring collection of taxes from scores of tax-dodgers against Customs taxes, Income taxes, Property taxes ?
One NBR Chairman was accused of corruption by ACC in recent past & trust me, he is not the only one. How about starting with all NBR officials, top to bottom, over the last 43 yrs & see how the keepers of Country’s revenue have fared in terms of honesty to their given responsibility.
Every institute has its mandate to perform duty. RAB is entrusted with ensuring law and order in the country. They should focus on that rather than trying to do other people’s job. In Bangladesh no agency can be found having zero corruption allegations, not even ACC or RAB! If tomorrow NBR officials claim that RAB is not doing its jobs properly, will we allow NBR to perform the tasks of RAB? The proposal of RAB could not be more childish and ridiculous!! I’m now worried – can we trust this organization, RAB, whose sense of proportion is so low!
I like this gentleman, DG RAB. Looks like a Prince, speaks with the confidence of a King & makes no bones of what he wants done. Putting spikes on the road in front of DMP office to stop anyone using the wrong lane, putting check posts to stop Formalin laced mangoes from entering city markets, issuing warning to building owners in DSCC to paint their outer surface to make the city look cleaner are some of his bold initiatives.
Any one in Govt service who is slow or dumb & does not work hard enough, makes it safe & smooth into his/her retirement. But criticism follows anyone doing an extra bit out of the ordinary. DG RAB is one such guy & is always looking for areas to improve. I kind of like him alright.
He is cut out for something bigger & I wish him luck.