VAT and customs officers have been allegedly harassing garment exporters and imposing extraordinary fines because they don’t have the necessary paperwork, as reported by an exporter.
According to Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), VAT and customs officers are charging fines of up to 400 per cent.
He continues to say that because of purportedly missing documentation, officials in Narayanganj are fining people between Taka 2 lakh and Taka 5 lakh in regions like Sanarpar and Rupganj upazila.
He further said that officials often detain goods-laden trucks and it takes a few days to release them. But by then it is too late to take the goods to the factories.
Consequently, exporters are forced to deal with the cancellation of work orders or incur high shipping costs when sending goods by air.
Hatem was presenting at a pre-budget discussion sponsored by the Economic Reporters’ Forum (ERF) and the Institute of Chartered Accountants of Bangladesh (ICAB) on “highlighting income tax, VAT, customs duty, sector-wise allocation of budget, external debt, etc.”
The conversation, which included journalists, businesspeople, accountants, and economists, was moderated by former ICAB President Md. Humayun Kabir.