Islampur-based Classical Hometex hid Tk 1.41 billion sales to dodge VAT

Classical Hometex, a home textile company based in Dhaka’s Islampur, concealed data on nearly Tk 1.41 billion in sales to evade Value Added Tax, or VAT, according to the authorities.

Acting on a tip-off, the VAT Audit, Intelligence and Investigation Directorate conducted an investigation at Classical Hometex’s sales centre in Islampur on Nov 24, its Director General Moinul Khan said on Thursday.

The investigators, led by Deputy Director Tanvir Ahmed, found that the company dodged Tk 44.3 million in VAT from 2017 to October 2021. With 2 percent interest, the total dues ballooned to about Tk 60 million.

Shamim Hossain, managing director of Classical Hometex, could not show VAT documents during the investigation. The company does not have a price list and it does not issue VAT receipt. Moreover, it does not keep records of the services sold.

The investigators checked the computers at the sales centre and found hidden data on sales that were inconsistent with the record the company had shown to the authorities.

Classical Hometex had sold products worth over Tk 2 billion in the period, according to the hidden data, but it showed Tk 7668.53 million in sales, hiding the information on the sales of about Tk 1.41 billion.

The company with six outlets in Bangladesh sells bed sheets, comforters, blankets and other home textile products. In line with the new law, 7.5 percent VAT is applicable on its products.

Moinul said a case was started against Classical Hometex and the findings were sent to Dhaka South VAT Commissionerate for steps to collect the dodged taxes.