The average annual VAT payment by 35 large taxpayers has remained below Tk 100 million during the last three years in a sign their financial health has deteriorated, officials said.
The large taxpayers unit (LTU) under the VAT wing has sorted out the companies to exclude those from the unit as they no longer fall into the category.
The unit has moved to find out the reasons for the declining trend in VAT collection from the companies during the last three consecutive years.
In a recent letter to the National Board of Revenue, the unit has placed a detailed scenario on the status of the 35 companies, including the VAT payment in FY 2017-18, FY 2018-19 and FY 2019-20.
The letter said the unit faces problems for achieving its target as the VAT payment of some companies remained below Tk 100 million.
The 35 companies consist of 21 per cent of the total LTUs of 170 large companies.
The unit has recently assigned six separate teams to scrutinise the last five years’ revenue growth, market share, balance sheet, income growth and production capacity of the companies.
Members of the teams have already started visiting the factory premises of the companies to find out the reasons.
The investigation process is expected to be completed by February 2021.
Officials said the LTU would take necessary measures for the companies based on the findings of the teams.
Of the 35 companies, the VAT payments by some companies have averaged Tk 0.5 million during the last three years.
The companies are: Orion Infusion Ltd, National Polymer Industries Ltd, International Television Ltd (NTV), Intercontinental Dhaka, Trais Pack Ltd, Bangladesh Television, Lalbagh Chemical and Perfumery Works Ltd, Akij Particle Board Mills Ltd, Jayson Pharmaceutical Ltd, Bangladesh Insulator and Sanitary ware Factory Ltd, Phoenix Insurance Co Ltd, Mutual Food Products Ltd and Bashundhara Paper Mills Ltd. Other companies include Mir Cement Ltd, Global Heavy Chemical Ltd, ACME Agrobate and Beverage Ltd, Partex Furniture Ltd, Akij Printing and Packages Ltd, Sinha Printers Ltd, Magura Paper Mills Ltd, GA Company Ltd, National Tubes Ltd, Libra Infusions Ltd, Otobi Ltd, Apollo Ispat Complex Ltd, Apollo Ispat Complex Ltd (unit-2), the Bengal Packages Ltd, Miracle Industries Ltd (unit-2), Tampaco Foils Ltd, United Edible Oils Ltd, Dipa Food Products Ltd, Interspeed Advertising Ltd and Farzana Oil Refineries Ltd.
Officials said VAT payment by the Hotel Intercontinental also declined as it was closed for renovation.
The average VAT payment in the last three years by the Intercontinental Dhaka declined to less than Tk 100 million, although it paid Tk 181.4 million in FY 2019-20.
Officials said the VAT payment by the hotel would increase in the coming years as it became fully operational now.
Of the 35 companies, VAT payment by International Television Channel (NTV), BTV, Miracle Industries Ltd (unit-2), Tampaco Foils Ltd, Dipa Food Products Ltd and Farzana Oil Refineries Ltd, significantly declined in the period.
Dipa Food Products Ltd and Farzana Oil Refineries Ltd have already applied to the unit for factory closure. The two companies paid no VAT in FY 2019-20, according to the LTU data.
Of 25 state-owned entities registered with the unit, revenue growth rate of National Tubes Ltd, BTV and Bangladesh Insulator and Sanitaryware Factory Ltd is low.
According to the LTU data, the average VAT payment by seven companies out of 35 were between Tk 0.5 million to Tk 7.6 million.
The average VAT payment by four companies was between Tk 12 million and Tk 18 million.
The average VAT payments by three companies were between Tk 22.5 million to Tk 25 million.
Nine companies’ average VAT payment ranged from Tk 39 million to Tk 48 million.
The average VAT payments by the rest of the companies were between Tk 54 million and Tk 98 million.