The Directorate General of VAT Audit, Intelligence and Investigation, Dhaka Division, has uncovered roughly 3.18 billion taka in VAT evasion by battery manufacturer Jiuzhou Industry Limited. The evasion was uncovered based on data on the company’s battery production and sales.
The National Board of Revenue (NBR) disclosed the information in a press release Sunday.
It said a preventive team from the Directorate General of Audit, Intelligence and Investigation raided Jiuzhou Industry on August 3, based on intelligence information. Various commercial documents, records and accounting papers belonging to the company were seized during the raid.
A detailed review and accounting of the seized documents later revealed VAT evasion of 3,179,251,378 taka against the company.
The NBR notice said the company had been operating while concealing actual information with the intent of evading government revenue. It said legal and judicial proceedings against the company are under way, in accordance with VAT law, to recover the evaded revenue.
Jiuzhou Industry Limited’s factory is located in Rupganj, Narayanganj. The company is primarily involved in manufacturing and marketing various types of batteries and battery-related components, chiefly IPS, UPS, solar system and vehicle or motor-vehicle batteries of various capacities. Such battery factories typically use lead plates, electrolyte, chemicals and plastic casing for assembling and processing lead-acid batteries, VRLA batteries or modern energy storage batteries. The company primarily imports raw materials and equipment (such as battery-making components or oven parts) from China to operate its factory in Bangladesh.