Probing businesses’ complaints may reveal ‘something else’: NBR boss

National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem on Sunday dismissed businessmen's complaints against field tax officials of harassment, saying investigating such allegations may reveal "something else".

The comment came in response to complaints from steel manufacturers at a pre-budget discussion regarding excessive VAT demands and pressure tactics.

Md Shahjahan, managing director of Chakda Steel Re-rolling Mills, highlighted the steel industry's struggles with VAT officers at the ground level.

He accused them of pressuring businesses to pay more VAT each year, regardless of actual profits. He further criticised the practice of requiring a 20% payment upfront when appealing VAT assessments, even if the appeal is successful.

"Industries cannot survive like this," Shahjahan said, expressing concerns about the demoralising effect of such practice on businesses. "The productivity of my firm is decreasing, on the other hand, VAT on my industry is increasing. It's becoming contradictory."

The NBR Chairman, however, appeared dismissive. He interrupted Shahjahan, stating, "A thorough investigation into VAT calculations and past payments could uncover more than just harassment."

The chairman's response, seemingly implying potential wrongdoing on the part of the businesses, left the businessman speechless.

In reply, Md Shahjahan said, "We are facing problems. NBR pressure was hindering business growth."

He reiterated the issue of hefty upfront payments for contested assessments and the lack of refunds, highlighting the financial strain on businesses.

Mahbubur Rashid Jewel, general secretary of the Bangladesh Re-Rolling Mills Association, added to the discussion by questioning the logic of turnover tax being applied even in the absence of an income.

He argued that this practice blurs the lines between income tax and sales tax, creating confusion and hardship for businesses. Turnover tax is the minimum tax on sales for an entire year.

On behalf of the Bangladesh Cement Manufacturers Association, Imran Karim, vice chairman of Confidence Cement, presented four specific demands. 

These demands include a reduction in the import duty of clinker from the current Tk700 to Tk200.