The New Nation - Internet Edition

Staff Reporter

The National Board of Revenue (NBR) has launched an investigation to ascertain for whose negligence the government was going to lose Tk 30 crore from Grameenphone, the largest mobile operator in Bangladesh, in VAT.

NBR sources said, the GP signed a lease agreement of Tk 200 crore with Bangladesh Railway (BR) in 1997 for using its optical fiber network.

Grameenphone signed a lease agreement of Tk 200 crore with the Bangladesh Railway in 1997 for using its fibre-optic communication network and 15 per cent VAT to the government.

Later, the Central Intelligence Cell, and the VAT Inspection, Intelligence and Investigation directorate of the NBR had found that the company did not pay the 15 per cent VAT while paying Tk 123.67 crore to the Bangladesh Railway as lease money between 1997 and 2004.

The GP, as per the rule, was supposed to pay 15 per cent of the total amount in VAT, which was about Tk 30 crore.

But the GP authorities refused to pay the VAT saying it was included in the total amount as per the agreement.

The matter first came in the limelight when an NBR official went through the agreement in 2000, but there was no move to investigate it as a vested quarter tried to put a lid on it.

Later, in 2004, an official of Central Intelligence Cell (CIC) restarted the case and found that the GP evaded Tk 30 crore in VAT.

The NBR official then submitted a report in this regard.

"After years of hassle, the NBR at last succeeded to realise Tk 30 crore from GP in VAT," said an NBR official, who was involved in the case.

The GP paid the whole amount in six installments with the last installment being paid in June 2007.

"There is a provision in tax rules to fine for tax or VAT evasion (generally 2.5 times than the original amount), but the GP just paid the original amount and there was no fine," the official said expressing anonymity.

After assuming office, the new NBR chairman asked the officials concerned to detect the officials for whom the national revenue-collecting agency was going to lose the huge money in VAT.

Meanwhile, the GP gave its part of the fibre-optic network to some other companies, including mobile phone operators, in sub-lease, and they were taking VAT on the total amount.