The officials of Chattogram Customs, Excise and VAT Commissionerate on Thursday thwarted an attempt by a Zarda (chewing tobacco) factory to evade around Tk30 lakh in VAT.
The official raided Naim Chemical and Company in Kadamtali area of the port city and seized raw material for manufacturing 970 kilograms of Zarda worth Tk60 lakh.
The revenue money of the seized material amounts to nearly Tk30 lakh, Shahinoor Kabir Pavel, deputy commissioner at the Customs, Excise and Vat Commissionerate said in a statement on Thursday.
The statement further read that the factory was established at a residential building in the Kadamtali area.
Most of the Zarda, a betel leaf ingredient was supplied in Cox's Bazar and Teknaf.
It was also found that the factory was being run without any VAT registration. Legal action is being taken against the factory under the Value Added Tax and Supplementary Duty Act, 2012.