In another glaring example of duty benefit abuse, as many as 36 Narsingdi-based textile mills, which imported 30,350 power looms in the last 5 years to make clothes under a 1-per cent concessionary duty benefit for capital machinery import, did not install over 83 per cent of power looms imported under duty benefit and rather sold them in the open market.
According to reports, the National Board of Revenue (NBR) found only 5,021 power looms installed as per condition of the benefits while remaining owners of the mills, neither set up factories nor used the looms for production thereby depriving the state from getting the due revenues.
The Narsingdi Division of the Customs Excise and VAT Commissionerate, Dhaka (East) reportedly detected the irregularity during a recent drive, which found loss of around Taka 200 crore in customs duty and taxes and Taka 39 crore in VAT due to the same.
Following the detection of the irregularities, Commissioner of VAT Commissionerate of Dhaka East, Tasmina Hossain, reportedly requested the Chittagong Customs House to step up vigilance while releasing consignments that are imported by these entities.
As per reports, Madina Textile, Zarif Textile, Baroza Textile, Hazi Sizing Mills, Haque Textile, Momin Textile, RK Textile, Fahad Textile, Agomoni Textile, SB Textile, Bunon Textile, Zohra Textile Mills, Aida Textile, Al Amin Textile, Amin Mir Textile, Ovi Tie Dye and Swing House, Nijhum Textile, Umaiza Textile, Modern Textile, Shilpi Textile, Sultana Textile, Moon Tex, Yeamin Spinning, Sneha Moni Textile, Sarker Textile Mills, MR Textile, HR Textile, Harun Textile, Mother Textile and Rangdhanu Textile are amongst the mills that were allegedly found to have been involved in such irregularities by the VAT office.