Executive Summery

Value Added Tax is one of the most important sources of tax revenues in Bangladesh. Since its introduction in 1991, VAT is one of the most effective and efficient tools in resource mobilization. According to section 20 of the Value Added Tax, 1991, the Board appoints certain officials for the purpose of effective application of the VAT law and rules. These officials as a whole are known as Value Added Tax Authorities. VAT authorities may be classified into two major groups depending on their functions and powers namely administrative authorities & Judicial Authorities. These two authorities with office bearers are depicted in the following chart in order of their respective power, authorities and responsibilities. National Board of Revenue (NBR) an organ of the Ministry of Finance. NBR was constituted in 1972 under the National Board of Revenue Order 1972, which repealed and replaced the Central Board of Revenue Act 1924. It lies at the apex of the whole revenue organization of the government and is responsible for the administration of almost all the direct and indirect taxes. The main direct taxes are the income tax, wealth tax (collected as a surcharge of income tax since assessment year 1999-2000) and gift tax, while the indirect taxes are the customs duty, excise duty, VALUE ADDED TAX (VAT), turnover tax, supplementary duty and infrastructure development surcharge. The Commissioner, Value Added Tax is appointed by the National Board of Revenue. The term Collector has been renamed by the term Commissioner through the Finance Act 1995. He is responsible to exercise the authority conferred on him by the VAT Act 1991 also can exercise full authority while controlling the sub-ordinates within his jurisdiction and territory. Director General, Central Intelligence Cell, he is appointed by the NBR and carries out functions like inspection, investigation of VAT related cases involving leakage of revenue or evasion of value added tax. Commissioner Value Added Tax. Commissioner, Large Taxpayer Unit, DG, Central Intelligence Cell, DG, Audit

Intelligence and Investigation-VAT, DG, Duty Exemption and Drawback Office Joint Commissioner or Director, VAT, Assistant Commissioner or Assistant Director, VAT, Superintendent, VAT, Inspector, VAT.VAT Officer Additional Commissioner or Additional DG, VAT Customs wing is primarily responsible for collection of all duties and taxes at the import stage. Apart from collection of government revenue it is also responsible for trade facilitation, enforcement of government regulations, protection of society and environmental protection, preparation of foreign trade statistics, trade compliance and protection of cultural heritage. Customs collects 42% of the NBRs total revenue. The revenue target for the year 200708 was Tk. 17,812 Cr. and actual revenue collection so far (July 07 to May08) is Tk. 16, 987.06 Cr. that is 19.04% higher than the previous year. The target has been revised to Tk. 19385 Cr. for 2007-08 and with an increase of 16.25%; it has been set to Tk. 22,536 Cr. for the year 2008-09.

Introduction
Value Added Tax is one of the most important sources of tax revenues in Bangladesh. Since its introduction in 1991, VAT is one of the most effective and efficient tools in resource mobilization. Value Added Tax has emerged as a principal instrument of taxing domestic consumption world wide during last four decades. It is now in operation in more than 130 Countries. Value added tax is a primary source of tax revenue in many European and other developed countries. Its importance is also increasing in the developing countries because of its effectiveness in mobilizing local resources. VAT proves to be an efficient tool for revenue collection; its performance, therefore, has direct impact on fiscal mobilization, macroeconomic stability, and development. The basic advantages of Value Added Tax can be stated as its neutrality, tranparency, certainty and self policing mechanism.

Objective of the Study

Intention to achieve extensive knowledge about Value Added Tax and Customs. To familiar with the VAT and Customs Authority. To understand the Organogram of VAT and Customs Administration. To study what performance are done by whom in the VAT and Customs Administration. To understand the foreign exchange operations of islami bank Bangladesh limited 3

To highlight the responsibilities of different

Methodology
A. Sources of Data: The report is prepared by using both primary and secondary data. i) Primary Sources: A lots of the required information came from primary sources. These sources are o Practical desk work o Relevant file study as provided by the concerned officer o In depth study of selected cases. o Maintaining diary. ii) Secondary sources: Conceptual parts of the report have been collected by studying different literatures regarding credit appraisal system. Some of these secondary sources are: Different Circulars issued by the VAT and Customs Authority. Different manuals published by National Board of Revenue. From the website of National Board of Revenue. Newspaper information on several days. Tax Reports. Relevant books, Newspapers and Journals.

B. Analysis of Data: Some arithmetic and graphical tools are used in this report for analyzing the collected data and to classifying those to interpret them clearly.

Limitations of the study

The study does not cover practical example because of confidentiality the VAT and Customs did not provide actual information.. It is very difficult to analyze this issue without proper knowledge about VAT and Customs Administration. As it is not conventional so it bears some complexity to understand. Some words are in legal terms that make it difficult. It is time consuming to differentiate & understand interest & profit. The study could not cover the sufficient data due to time constraint

About Tax
Classification of Tax System:

Classification of Tax systems

Multiple Taxes

Single Tax

1. Single Taxes: Only one tax for everybody. Single tax is the poll tax or the head tax or adolescent tax, which is imposed on a person simply because he is there in the society. 2. Multiple Taxes: A system under which different types of taxes are believed by the govt. according to suitability. Ex. Income Tax, VAT.

Types of Taxation:

Taxation

Direct Taxes Indirect Taxes

Progressive Taxes Regressive Taxes Proportional Taxes

1. Direct Tax Direct tax is a sort of tax the impact of effect incidents and which fallback on the person on whom it is imposed. i.e.: Income Tax, Marriage Tax etc. 2. Indirect Taxes Indirect Taxes are those burden of which can be passed on others through price vehicles. 3. Progressive Taxes The tax rate increases as the taxable income/amount increases. 4. Regressive Taxes The opposite of a progressive tax is a regressive tax where the tax rate decreases as the taxable income/amount increases.

5. Proportional Taxes In between is a proportional tax, where tax is fixed as the amount to which the rate is applied increases

Value Added Tax

Background The origin of Value Added Tax (VAT) can be traced as far back as the writings of F Von Siemens, who proposed it in 1918 as a substitute for the then newly established German turnover tax. The turnover tax was similar to the value added tax system but did not provide rebates for the taxes paid at each stage. Since then numerous economists have recommended it in different contexts. Also, various committees have examined the tax in great detail. However, it was not until 1953 that the value added tax system was put in place in the United States or Europe. That year, Michigan adopted a modified VAT, termed a business Activities Tax, and used the system for 14 years. France was the first country to begin using value added tax to partially replace its own turnover tax system in 1954. From 1987 to 1997, value added ax was introduced in many eastern European countries, the former Soviet republish, and Asia, Chine, Thailand, the Philippines, and Bangladesh all implemented the policy during the mid-1990s. By the early 2000s, VAT had become the a key component of the tax systems in more than 120 countries, with tax rates varying from 5 to 25 percent. Writing in Finance and Development, Liam Ebrill claimed that the rapid rise of the value added tax was the most dramatic and probably most important development in taxation in the latter part of the twentieth century, and it still coutinues. From having been largely the preserve of more developed countries in 8

Europe and Latin America, it has become a pivotal component of the tax systems of both developing and transition economies. Definition Value Added Tax (VAT) or goods and services tax (GST) is tax on exchanges. It is levied on the added value that results from each exchange. It differs from the sales tax because a sales tax is levied on the total value of the exchange. Features of VAT in Bangladesh: (i) VAT is imposed on goods and services at import stage, manufacturing, wholesale and retails levels; (ii) A uniform VAT rate of 15 percent is applicable for both goods and services; (iii) 15 percent VAT is applicable for all business or industrial units with an annual turnover of Taka 2 million and above; (iv) Turnover tax at the rate of 4 percent is livable where annual turnover is less than Taka 2 million; (v) VAT is applicable to all domestic products and services with some exemptions; (vi) VAT is payable at the time of supply of goods and services; (vii) Tax paid on inputs is creditable/adjustable against output tax; (viii) Export is exempt; (ix) Cottage industries (defined as a unit with an annual turnover of less than Taka 2 million and with a capital machinery valued up to Taka 3,00,000) are exempt from VAT;

(x) Tax returns are to be submitted on monthly or quarterly or half yearly basis as notified by the Government.

(xi) Supplementary Duty (SD) is imposed at local and import stage under the VAT Act, 1991. Existing statutory SD rates are as follows: (a) On goods: 20%, 35%, 65%, 100%, 250% & 350% (b) On services: 10%, 15% & 35%.

Value Added Tax Authorities

According to section 20 of the Value Added Tax, 1991, the Board appoints certain officials for the purpose of effective application of the VAT law and rules. These officials as a whole are known as Value Added Tax Authorities. Types of Vat Authorities: VAT authorities may be classified into two major groups depending on their functions and powers namely 1. Administrative authorities: To look after the total administration of VAT wing starting from identification of assesses to the collection of VAT, TT and SD from the assesses. They are also responsible to maintain an effective coordination in administration, management and control among various VAT offices throughout the country. 2. Judicial Authorities: To hear the claims of the assesses and settle the claims through providing verdict as early as possible.

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These two authorities with office bearers are depicted in the following chart in order of their respective power, authorities and responsibilities. Administrative Authorities: National Board of Revenue National Board of Revenue (NBR) an organ of the Ministry of Finance. NBR was constituted in 1972 under the National Board of Revenue Order 1972, which repealed and replaced the Central Board of Revenue Act 1924. It lies at the apex of the whole revenue organization of the government and is responsible for the administration of almost all the direct and indirect taxes. The main direct taxes are the income tax, wealth tax (collected as a surcharge of income tax since assessment year 1999-2000) and gift tax, while the indirect taxes are the customs duty, excise duty, VALUE ADDED TAX (VAT), turnover tax, supplementary duty and infrastructure development surcharge. Estimates for the period between 1990-2000 showed that on average, the NBR is responsible for collection of about 93% of total tax revenue and about 81% of the total revenue of the government in a year. The taxes collected by organs other than the NBR are narcotics duty, land revenue, sale of non-judicial stamp, registration and motor vehicles tax. In addition to collection of taxes, NBR plays a key role in formulation and implementation of the the government. Power and Functions of NBR are: a. Collecting direct and indirect taxes; b. Formulating and dealing with policy matters including continuous re-appraisal of tax policies and tax laws;
FISCAL POLICY

of

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c. Controlling and supervising direct and indirect tax administration;

d. Helping in formulating tax policy and processing legislation, preparing tax revenue budget, negotiating agreements relating to tax, donations, debts and general cooperation with foreign governments and international agencies, and also vetting tax clauses of agreements with foreign governments, agencies or institutions; e. Performing all the functions and exercising the powers vested in the government by various tax laws, such as disposing of revision application under the customs, excise and VAT laws, and dealing with exemptions from various taxes; and f. Helping in preventing smuggling, implementing import and export policies, and formulating policies for domestic 12ndustrialization or encouraging
DIRECT INVESTMENT. FOREIGN

Commissioner, Value Added Tax: The Commissioner, Value Added Tax is appointed by the National Board of Revenue. The term Collector has been renamed by the term Commissioner through the Finance Act 1995. He is responsible to exercise the authority conferred on him by the VAT Act 1991 also can exercise full authority while controlling the sub-ordinateswithin his jurisdiction and territory. Power and Functions of the Commissioner of Value Added Tax:

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a. To exercise the power conferred upon him by or under VAT Act and to perform the duty assigned to him [Section 21 (1)]. b. To exercise the activities relating to the determination and collection of VAT, SD and TT, as the case may be. c. He will administer and control the affair of additional and joint commissioners. d. He may assign any of his subordinates to exercise the power of a commissioner in the whole or any specified area of his jurisdiction [Section 22(2)]. e. He has the power to issue summons to any person in writing mentioning the reason thereof for witnessing and submitting of any document and other material [Section 25]. f. He has the right to enter the place and premises of production, rendering of service and trading to inspect stock of goods, services and inputs and to examine accounts and records, if necessary [Section 26]. g. He may himself or order his subordinates to audit the tax and tax related activities of a registered or register-able institution on the basis of relevant rules and to submit the report within specified period [Section 26A] h. For fulfilling guidelines regarding the use of stamp or banderol as per Section 6(4A) of this Act, Commissioner may be appoint one or more VAT officer and give them necessary directives for observation and surveillance in the place of production, supply, rendering of service or trading of a registered person and for ensuring supervised supply [Section 26B].

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i. He has jurisdiction power to seize forfeitable goods and impose penalty where value of goods or taxable service exceeds tk15 lacs. But in both case he has to serve show cause notice to the owner of the seized goods within prescribed periods [Section 27 & 40].

j. He has the power to supply attested Photostat copy of documents regarding VAT subject to certain conditions. Commissioner, Large Taxpayer Unit, VAT: They are appointed by NBR and works Under the Jurisdiction of NBR. They are also appointed on a territorial basis in most of the time. Director General, Central Intelligence Cell: He is appointed by the NBR and carries out functions like inspection, investigation of VAT related cases involving leakage of revenue or evasion of value added tax. This post has been introduce through the Finance Act, 2004 changing the scope of Section 20 of the VAT Act, 1991. He may also exercise other functions as may be assigned to him by the Board. Director General (Audit, Intelligence & Investigation, and VAT): He is also appointed by NBR and responsible to administer the duties relating to audit, intelligence and investigation of various VAT related matters.

Director General (Duty exemption and drawback office, VAT ) :

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He is also appointed by NBR and responsible to administer the duties relating to import duty exemption and drawback related matters associated to value added tax. Additional Commissioner of Additional Director General, VAT : They are appointed by the NBR and works under the direct supervision of NBR. They may control and assign duties to their subordinates like Joint Commissioners or Deputy Commissioners or other VAT officials to exercise certain powers imposed on them. He may also exercise other functions as may be assigned to him by the Board. Joint Commissioner of Director, VAT: The term Joint Collector has been replaced by the term Joint Commissioner or Director through the Finance Act, 1995. They are appointed by the NBR and works under the direct supervision of the Commissioner or Additional Commissioner. Value Added Tax Authority

Administrative 1. Commissioner Value Added Tax National Board of Revenue 2. Commissioner, Large Taxpayer Unit 3. DG, Central Intelligence Cell 4. DG, Audit Intelligence and Investigation-VAT 5. DG, Duty Exemption and Drawback Office 6. Additional Commissioner or Additional DG, VAT

Judicial

Appellate Tribunal

Commissioner (Appeal), VAT

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1. Joint Commissioner or Director, VAT 2. Deputy Commissioner or Deputy Director, VAT 3. Assistant Commissioner or Assistant Director, VAT 4. Superintendent, VAT 5. Inspector, VAT 6. VAT Officer

control and assign duties of the Deputy Commissioner and other VAT officers below his rank.

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 Deputy Commissioner or Deputy Director, VAT : The term Deputy Collector has been replaced by he term Deputy Commissioner or Deputy Director through the Finance Act, 1995. They are appointed by the NBR and works under the direct supervision of the Commissioner, Additional Commissioner or Joint Commissioner. He may control and assign duties of the Assistant Commissioner and other VAT officers below his rank. Power & Functions of the Deputy Commissioner, VAT: i. To exercise the powers conferred upon him by or under VAT Act and to perform the duty assigned to him. He may also exercise all powers conferred upon and perform all duties assigned to any of his subordinates [Section 21 (1)]. ii. iii. iv. To exercise the activities relating to the determination and collecttion of VAT, SD and TT, as the case may be. He will administer and control the affairs of the assistant commissioners. He has the power to issue summons to any person in writing mentioning the reason there of for witnessing or submitting of any cocument or other material [Section 25].

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v.

He has the right to enter place and premises of production, rendering of service, and trading to inspect stock of goods, service and inputs and to examine accounts and records, if necessary [Section 26].

vi.

He has the adjudication power to seize forfeitable goods and impose penalty where value of goods or taxable service is not more than Tk. 5 lacs. But in both cases he has to serve show cause notice to the owner of the seized goods within prescribed periods [Section 27 & 40].

Assistant Commissioner, Value Added Tax: The term Assistant Collector has been replaced by the term Assistant Commissioner through the Finance Act, 1995. They are appointed by the NBR and generally work under the supervision of the Joint commissioner or Deputy Commissioner. They help the Deputy Commissioner in exercising powers related to VAT activities. Superintendent , VAT : They are also appointed by the NBR and generally work under the suppervision of assistant commissioner, VAT. They are mainly engaged in activities like VAT assessment, recovery and other relevant activities in a local VAT office or circle. Power & Functions of the Superintendent, VAT: i. To exercise the powers conferred upon him by or under VAT Act and to perform the duty assigned to him. He may also exercise all powers conferred upon and perform all duties assigned to any of his subordinates [Section 21 (1)]. ii. iii. To exercise the activities relating to the determination and collection of VAT, SD and TT, as the case may be. He will administer and control the affairs of the VAT Inspectors and other officers below that rank.

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iv.

He has the power to issue summons to any person in writing mentioning the reason thereof for witnessing or submitting of any document or other material [Section 25].

v.

He has the right to enter place and premises of production, rendering of service, and trading to inspect stock of goods, service and inputs and to examine accounts and records, if necessary [Section 26].

vi.

He has the adjudication power to seize forfeitable goods and impose penalty where value of goods or taxable service is not more than Tk. 1 lac. But in both cases he has to serve show cause notice to the owner of the seized goods within prescribed periods [Section 27 & 470].

Inspector , VAT : The position Inspector, VAT has been introduced through the Finance Act, 2003. They are appointed by the NBR and helps the Deputy Commissioner, Assistant Commissioner and the Superintendent in exercising powers and functions as a subordinate officer. As a subordinate officer under the Superintendent, they also work to search for new taxpayers through investigation and to widen the VAT net. VAT Officer with any other Designation :

They are also appointed by the NBR and generally work under the supervision of the Assistant commissioner, VAT.

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Customs

Background Customs wing is primarily responsible for collection of all duties and taxes at the import stage. Apart from collection of government revenue it is also responsible for trade facilitation, enforcement of government regulations, protection of society and environmental protection, preparation of foreign trade statistics, trade compliance and protection of cultural heritage. Customs collects 42% of the NBRs total revenue. The revenue target for the year 200708 was Tk. 17,812 Cr. and actual revenue collection so far (July 07 to May08) is Tk. 16, 987.06 Cr. that is 19.04% higher than the previous year. The target has been revised to Tk. 19385 Cr. for 2007-08 and with an increase of 16.25%; it has been set to Tk. 22,536 Cr. for the year 2008-09.

Customs Administration

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Name and Designation of Custom and VAT Authorities:

List of Commissioner & DG Name (Customs and VAT Wing) S/N 01 Hussain Ahmed

Designation

President Customs, Excise & VAT Appellate Tribunal, Dhaka. Director General Customs, Excise & VAT Training Academy, Chittagong Commissioner (Import) Customs House, Chittagong Commissioner (Export) Customs House, Chittagong Customs, Excise & VAT Commissionerate, Chittagong Commissioner Customs House, Dhaka Commissioner Customs, Excise & VAT Commissionerate Dhaka (South), Dhaka. Commissioner Customs, Excise & VAT Commissionerate Dhaka (North), Dhaka. Commissioner Customs Bond Commissionerate, Dhaka. Commissioner Customs, Excise & VAT

02

Mr. Prokash Dewan

03 04 05 06 07

Syed Golam Kibria Md. Jamal Hossain Md. Firoz Shah Alam Md. Masud Sadik Md. Abdul Kafi

08

Md. Enayet Hossain

09

Md. Maruful Islam

10

Md. Lutfor Rahman

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Commissionerate, Rajshahi. 11 Md. Hafizur Rahman Commissioner Customs, Excise & VAT 12 13 Md. Abdul Mannan Sikder Md. Hafizur Rahman Commissionerate, Jessore. Commissioner Customs House, Benapole. Commissioner Customs, Excise & VAT 14 Md. Saiful Islam Commissionerate, Khulna. Commissioner Customs, Excise & VAT 15 Sultan Md. Iqbal Commissionerate, Sylhet. Director General Customs Intelligence & 16 Md. Shahriar Mollah Investigation Directorate, Dhaka. Director General VAT Audit, Intelligence and 17 Md. Nasir Uddin Investigation Directorate, Dhaka. Director General Duty Exemption and Drawback 18 Md. Shahabuddin Nagori 19 Md. Jahangir Hossain Howlader 20 Mr. Margub Ahmed Office, Dhaka. Commissioner Customs Valuation and Internal Audit Commissionerate, Dhaka. Commissioner Large TaxPayer Unit (LTU), VAT, Dhaka. Member Customs Excise and VAT Apellate Tribunal, Dhaka.

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SWOT Analysis

SWOT Analysis of Value Added Tax and Customs:

SWOT Analysis is used to evaluate the Strengths, Weaknesses, Opportunities, and Threats in a business. It is a methodology used to aid strategic planning that gained popularity during the 80s. It involves specifying the objective of the business or project and identifying the internal and external factors. SWOT Analysis of VAT Strength:

One of the best reasons for instituting a value added tax, according to VAT proponents, is that the system encourages personal savings and investmentprincipal elements of a healthy economy- by taxing only consimption.

Compared with alternatives in indirect taxation, the VAT has more revenue potential. VAT system acts as a supplementary tax that can help make up for revenue lost due to income tax evasion. It is generally more broad based and entails a trail of invoices that helps improve tax compliance and enforcement.

Since VAT is carried through the retail level, it offers all the economic advantages of a tax that includes the entire retail price within its scope, at the same time the direct payment of the tax is spread out and over a large number of firmas instead of being concentrated on particular groups, such as wholesalers or retailers.

One particular advantage is that of the widening of the tax base by bringing all transactions into the tax net. Specifically, VAT gives the government the

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opportunity to bring back into the tax system all those persons and entities who were given tax exemptions in one form or another by the previous regime.

A significant advantage of the value added form in any country is the cross audit feature. Tax charged by one firm is reported as a deduction by the firms buying from it. Only on the final sale to the consumer is there no possibility of cross audit.

Vat may be selectively applied to specific goods or business entities as a control mechanism. It may also effectively be used to protect local industries. It is more equitable and transparent.

Weakness

The value added tax has been criticized as the burden of it relies on personal end-consumers of products and is therefore a regressive tax (the poor pay more, in comparison, than the rich).

Revenues from a value added tax are frequently lower than expected because they are difficult and costly to administer and collect. VAT increases inflation. In developing countries, some businessmen seize almost any opportunity to raise prices, and the introduction of VAT certainly offers such an opportunity.

It is also argued that VAT places a heavy direct impact of tax on the laborintensive firm compared to the capital- intensive competitor, since the ratio of value added to selling price is greater for the former. This is a real problem for labor-intensive economies and industries.

Certain industries (small-scale services, for example) tend to have more VAT avoidance, particularly where cash transactions predominate, and VAT may be criticized for encouraging this.

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Opportunities Values Added Tax Act, 1991: The Value Added Tax Act, 1991 (22 No. Act of 1991) came into force on 1st July, 1991. It has 73 sections, numerous sub-sections and three schedules containing necessary provisions for the purpose of imposing value assed tax. Value Added Tax Rules, 1991 : The National Board of Revenue prepared relevant rules under the name Value Added Tax Rules, 1991 in accordance with the power authorized under Section 72 of Value Added Tax Act, 1991. The rules are followed in the administration of the VAT Act. Finance Act : To give effect to the various proposals in the annual budget covering the areas of direct and indirect taxes, Finance Act is issued. It contains various applicable tax rates and amendments to the Value Added Tax Act and Rules, 1991. SRO (Statutory Regulatory Orders): According to the Section 21 of the Value Added Tax Act, 1991; NBR can issue certain circulars as and when necessary. The provisions of these SROs are also to be considered at the time of imposing VAT. VAT Case Law: In the course of assessment proceedings, the judgments given by the courts regarding the interpretations of any provisions of the VAT Act may also act as guidance to the assessing officers and the assessee in similar relevant circumstances. Threats

VAT has been criticized as the burden of it relies on personal end-consumers of products and is therefore a regressive tax. People may hide there original income in case of paying income taxes. 25

An argument may arise that VAT is a reason of double taxation.

Recommendation
Administrative authorities look after the total administration of VAT wing starting from identification of assesses to the collection of VAT, TT and SD from the assessesJudicial Authorities hear the claims of the assesses and settle the claims through providing verdict as early as possible. Values Added Tax Act, 1991: The Value Added Tax Act, 1991 (22 No. Act of 1991) came into force on 1st July, 1991. It has 73 sections, numerous sub-sections and three schedules containing necessary provisions for the purpose of imposing value assed tax. VAT system acts as a supplementary tax that can help make up for revenue lost due to income tax evasion. It is generally more broad based and entails a trail of invoices that helps improve tax compliance and enforcement. To give effect to the various proposals in the annual budget covering the areas of direct and indirect taxes, Finance Act is issued. VAT has been criticized as the burden of it relies on personal end-consumers of products and is therefore a regressive tax. Customs wing is primarily responsible for collection of all duties and taxes at the import stage. Customs duty has been criticized as the burden of it relies on importer.

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Conclusion
According to section 20 of the Value Added Tax, 1991, the Board appoints certain officials for the purpose of effective application of the VAT law and rules. These officials as a whole are known as Value Added Tax Authorities. VAT authorities may be classified into two major groups depending on their functions and powers namely Administrative authorities & Judicial Authorities

Administrative authorities look after the total administration of VAT wing starting from identification of assesses to the collection of VAT, TT and SD from the assesses Judicial Authorities hear the claims of the assesses and settle the claims through providing verdict as early as possible.

VAT Customs wing is primarily responsible for collection of all duties and taxes at the import stage. Apart from collection of government revenue it is also responsible for trade facilitation, enforcement of government regulations, protection of society and environmental protection, preparation of foreign trade statistics, trade compliance and protection of cultural heritage. Customs collects 42% of the NBRs total revenue.

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Bibliography
Value Added Tax Rule 1991. Review Book Bangladesh Income Tax by Nikhil Chandra Shil, Mohammad Zakaria Masud and Mohammad Faridul Alam. Gernal by National Board of Revenue. www.nbr-bd.org Customs Act,1969.

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