The National Board of Revenue (NBR) received fewer VAT returns this month from the businesses amid lockdown, now in place due to the COVID-19 outbreak.
As VAT offices remained open only four days, from April 12 to 15, the Board received only 30,781 VAT (value added tax) returns that fetched revenues worth only Tk 62.83 billion. The returns were submitted on the basis of business transaction for the month of March.
The NBR had received 69,500 VAT returns last month on the basis of business transaction in the month of February, officials said.
However, the amount paid as VAT varies, depending on business transaction in a particular month.
The deadline for submission of VAT returns for the month of March expired on April 15, 2020.
The businesses who will submit VAT returns after the deadline have to pay Tk 10,000 as penalty and also 2.0 per cent as interest on the amount of payable VAT for the month of March, according to VAT law.
Many businesses said they managed to submit the returns despite risk of the COVID-19 infection.
As there is no scope to extend the deadline for VAT return submission as per the existing law, some 252 VAT circle offices under 12 commissionarates across the country remained open from April 12 to 15 to receive VAT returns.
NBR chairman Abu Hena Md Rahmatul Muneem also visited the VAT circle offices to ensure smooth submission of VAT returns.
"VAT officials have served the businesses despite risk of coronavirus infection following the request of the businesses," said Md Jamal Hossain, a high official of the NBR.
Many businesses showed interest in submitting returns on time to avoid payment of the penalty, he said.
Of the 30,781 VAT returns submitted this month, 10,995 were submitted manually while 19,786 online.
Of the VAT zones, Large Taxpayers Unit (LTU) received 126 VAT returns worth Tk41.99 billion in the last four days.
However, businesses who submitted VAT returns online, had to visit banks for depositing treasury chalans as online payment of VAT money is not possible, people who submitted VAT returns told the FE.
Officials said the NBR received partial and incomplete VAT returns considering the COVID-19 situation.
Some submitted nil returns online as the VAT law allows submission of revised returns later as per section-66.
However, 2.0 per cent interest would be charged on the additional amount if the payable VAT goes up in the revised returns. However, Tk 10,000 as five for delayed payment would not be charged as per rule 49 (6).
Those who had no transaction in the month of March submitted nil returns too, sources said. Some businesses, who submit manual returns, said they could not send their returns by post or courier amid lockdown due to suspension of their services.
Officials said those who could not submit VAT returns can request respective VAT commissioners to allow application to waive penalty, considering the existing situation.
All the circle offices have maintained social distancing while receiving VAT returns. All the VAT officials wore Personal Protective Equipment (PPE). Besides, arrangements for hand wash and sanitization facilitates were made for the VAT payers at VAT offices.
Earlier, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) had requested the NBR to extend the time for VAT return submission and waive penalty, considering the COVID-19 situation.
