Star eateries, hotels prosecuted for allegedly dodging Tk 46 million VAT

The National Board of Revenue (NBR) has prosecuted Star eateries and hotels on charge of dodging Tk 46.3 million in Value Added Tax (VAT).

The VAT Audit, Intelligence and Investigation Directorate started the cases against 11 Star organisations at local offices of the VAT Commissionerate in Dhaka on Thursday.
 
The Directorate's Additional Director General Belal Hossain Chowdhury told bdnews24.com the Star eateries and hotels, which belong to the same owner, were raided on Apr 18 following allegations of their evading VAT payment.
 

"We've found the allegations true by checking the information and evidence collected during the drive," he added.

According to Chowdhury, charges of dodging VAT against companies are brought in VAT Commissionerate while individuals are sued in police stations.

The Star organisations that are facing the charge are Star Hotel and Kabab at Dhanmondi Road No. 2, Hotel Super Star restaurant and Hotel Super Star at Karwan Bazar, Star Kabab at Saat Masjid Road, Hotel Super Star at Joy Kali Temple Road, Hotel Star and Hotel Time Star at Thatari Bazar, Star Kabab and Restaurant at Banani, Star Hotel and Restaurant at Elephant Road, One Star Hotel and Restaurant at Kazi Alauddin Road and Star Bakery at Dr Kudrat-E-Khuda Road.
 
NBR in a media release said 'Star Hotel and Restaurant' pays VAT under both air-conditioned and non air-conditioned categories, breaching rules.
 
It also dodges VAT by issuing raw invoice, hand-written bills without mentioning VAT and not using electronic cash register for every transaction even after having ECR machine, the release said.  
 
The VAT from 'Star Kabab and Restaurant' doubled in past three months after the drive, it said.
 
"The VAT from the organisation will multiply if it pays revenue properly," it added.