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State-Owned Firm Faces Tax Enforcement Tk 860M Recovered

Industry: Fertilizer
Economic Tag: Vat & Tax

State-owned Jamuna Fertilizer Company Ltd, despite years of profitability and substantial fixed deposit receipts (FDRs), faced unprecedented tax enforcement. Taxmen froze all its nationwide bank accounts and encashed FDRs, recovering Tk 860 million in overdue taxes from fiscal years 2013-14 to 2021-22. Similar actions in May targeted private firms Ulka Games and Tiger IT, yielding Tk 507 million and Tk 143 million in unpaid taxes, respectively. Tax Zone-15 in Dhaka handled these cases, amassing Tk 2.69 billion in undisputed tax claims. This marked the first time NBR took such stern action against a state-owned entity. Despite prior notices, Jamuna failed to settle its dues, prompting account freezes and FDR encashment. The recovery process involved encashing ten FDRs held in six bank branches. Intensive monitoring and training enabled efficient use of financial accounting software, leading to a 50% revenue increase for Tax Zone-15. Efforts also focused on expediting tax dispute settlements pending in courts, with Tk 1.55 billion already recovered.

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