Business Reporter :
Law Ministry has asked National Board of Revenue (NBR) to follow legal procedure prior collecting revenues from mobile-phone, petroleum products, tax-exemption plea of SAHIC, an NGO, and mother and child hospital through Internal Resources Division (IRD).
Some important Statutory Regulatory Orders (SROs) of the income tax, customs and VAT wings were sent by the National Board of Revenue (NBR) for vetting by the Law Ministry. But all were sent back recently.
Sources said the Law Ministry refused to give the vetting as the NBR had sent recently the SROs as per usual practice.
But the law ministry took objection as, under the existing law, only ‘government’ or ‘ministry’ can seek law ministry’s approval for an SRO.
Insiders say there are hundreds of SROs issued by the income tax, customs and VAT (value-added tax) wing of the board. Only, the income-tax wing had issued more than 300 SROs following that process since 1984. The NBR has maintained such process of issuance of SRO since its inception.
According to government’s ‘rules of business’ a ministry can seek legal clearance on an issue, not a department, said a finance ministry official, adding that the NBR is not a ministry and so it should come through administrative channels to seek legal clearance on SRO.
The board prepares a draft of SRO after getting approval from the Finance Ministry and sent it to the law ministry for verification whether the new law contradicts with other laws.
A senior tax official said, “The NBR authority are in a contradiction before issuing SROs and its validity. Otherwise, revenue collection will face a big push.”
Another senior NBR official (not to be named) hinted that law ministry has raised such a question in 1980 first but it was resolved on grounds that tax-related decisions need speedy disposal. Otherwise companies may involve with ill-practice by stocking goods for higher benefits. Even there is scope to cash in billions of taka by disclosing the issuance of new SRO.
The tax official raised question over justification of sending the SRO via IRD, claiming that there is no expertise on tax-related matters in the IRD to examine the orders.
The law ministry’s question of seeking legal clearance surprises many of the tax officials. As a result, the latest tangle between law ministry and NBR may stuck-up many decisions.
Law Ministry has asked National Board of Revenue (NBR) to follow legal procedure prior collecting revenues from mobile-phone, petroleum products, tax-exemption plea of SAHIC, an NGO, and mother and child hospital through Internal Resources Division (IRD).
Some important Statutory Regulatory Orders (SROs) of the income tax, customs and VAT wings were sent by the National Board of Revenue (NBR) for vetting by the Law Ministry. But all were sent back recently.
Sources said the Law Ministry refused to give the vetting as the NBR had sent recently the SROs as per usual practice.
But the law ministry took objection as, under the existing law, only ‘government’ or ‘ministry’ can seek law ministry’s approval for an SRO.
Insiders say there are hundreds of SROs issued by the income tax, customs and VAT (value-added tax) wing of the board. Only, the income-tax wing had issued more than 300 SROs following that process since 1984. The NBR has maintained such process of issuance of SRO since its inception.
According to government’s ‘rules of business’ a ministry can seek legal clearance on an issue, not a department, said a finance ministry official, adding that the NBR is not a ministry and so it should come through administrative channels to seek legal clearance on SRO.
The board prepares a draft of SRO after getting approval from the Finance Ministry and sent it to the law ministry for verification whether the new law contradicts with other laws.
A senior tax official said, “The NBR authority are in a contradiction before issuing SROs and its validity. Otherwise, revenue collection will face a big push.”
Another senior NBR official (not to be named) hinted that law ministry has raised such a question in 1980 first but it was resolved on grounds that tax-related decisions need speedy disposal. Otherwise companies may involve with ill-practice by stocking goods for higher benefits. Even there is scope to cash in billions of taka by disclosing the issuance of new SRO.
The tax official raised question over justification of sending the SRO via IRD, claiming that there is no expertise on tax-related matters in the IRD to examine the orders.
The law ministry’s question of seeking legal clearance surprises many of the tax officials. As a result, the latest tangle between law ministry and NBR may stuck-up many decisions.
