Tobacco manufacturers, telecom operators among the top VAT payers, dishing out Tk38,111 crore in total
A total of 10 companies from the large taxpayers unit (LTU) were responsible for depositing the most value added tax (VAT) to the state coffers in fiscal year 2020-21, in the line of Tk38,111 crore.
Total VAT and supplementary duty (SD) paid in FY21 was Tk97,509 crore, of which the 10 companies paid about 40% of that.
The LTUs paid Tk49,252 crore in VAT of the total. Calculated, the 10 companies contributed to more than 77% of that amount.
According to the latest figures from the National Board of Revenue (NBR), the highest VAT payers were tobacco manufacturers, telecom operators and pharmaceutical companies.
Overall, the tobacco companies paid Tk27,000 crore, the telecom operators Tk8,466 crore and the pharmaceuticals companies Tk3,133 crore.
Currently, the LTU comprises 110 companies, who usually pay more than half of the total VAT total every fiscal.
According to NBR data, British American Tobacco Bangladesh (BATB) was the highest VAT payer, depositing a whopping Tk24,911 crore into the state coffer.
Mobile operator Grameenphone (GP) came in second, paying Tk4,485 crore, or 23% more than FY20.
NBR chairman Abu Hena Md Rahmatul Muneem expressed his satisfaction with Dhaka Tribune, saying: "The rising demand in the economy and improved relationship with the taxpayers made the success possible. Moreover, it’s our priority to stop that cat and mouse game between tax evaders and revenue collectors.
As you know, mainly consumers pay VAT. Various companies collect that VAT from consumers and submit it to the NBR," he added.
Another operator, Robi, came third, paying Tk2,344 crore, 48% higher than FY20.
United Dhaka Tobacco, which is in fourth place, paid Tk2,000 crore, but 27% less VAT than the previous fiscal.
Banglalink was fifth, paying Tk1,500 crore, a 31% jump from FY20.
Unilever Bangladesh was sixth, paying Tk655 crore, followed by Standard Chartered Bangladesh with Tk579 crore, Petrobangla Tk578 crore, Bangladesh Power Development Board (BPDB) Tk540 crore and Square Pharmaceuticals with Tk510 crore.
Analyzing the trend of paying VAT by LTUs, it can be seen that among the institutions, banking, soap and soft drink business performed above expectations amid the Covid-19 pandemic.
Around Tk3,000 crore has been paid as VAT from the banking sector, as banks levy VAT, SD and excise duty on various types of services.
As such, the last time VAT was paid in the banking sector, the growth was the highest, 43%.
Growth in VAT payment was notable among carbonated beverages, with 39%, and soap manufacturers with 35%.