Cox's Bazar VAT commissioner summoned to explain why he takes bribes instead of VAT

The High Court on Monday summoned Cox's Bazar VAT commissioner to explain why he takes bribes from hotels, motels and restaurants on a monthly basis, instead of collecting proper amounts of value-added tax (VAT). He has been asked to appear before the court on 18 June.

The HC bench of Justice Md Nazrul Islam Talukder and Justice Khizir Hayat passed the order after a hearing on the probe reports by the National Board of Revenue, Anti-Corruption Commission and Cox's Bazar district administration.

Two lawyers – Advocate Ishrat Jahan Shanta and Advocate Md Shamsuddoha – filed the writ late last year on the basis of a news report titled, "VAT worth hundreds of crores taka lost".

According to the news report, Cox's Bazar hotels and restaurants, in collusion with some officials of Cox's Bazar Customs, Excise, and the VAT office, are allegedly misappropriating hundreds of crores of taka in VAT.

In investigation, the ACC Chattogram Integrated District Office-2 found that many hotels and restaurants in Cox's Bazar are not paying VAT. Most hotels do not even keep guest entry registers or list room rents. Many hotels maintain multiple registers, one for the owners and one for the revenue officials.

Besides, hotels and restaurants do not use the VAT form. They are bribing VAT officials and only paying a minimum VAT on a monthly basis. As such, the government is losing a huge amount of money, the ACC report said.

The two other reports also find the authenticity of the allegations and said Cox's Bazar hotel and restaurants have been evading VAT for a long time in exchange for monthly bribes. About half a hundred hotel owners said their provided bribes are double the VAT amounts which means they pay nominal amounts of VAT, according to the reports.