The plan to create a Vat intelligence directorate was prompted by a High Court ruling that stated that customs intelligence had no jurisdiction in investigating cases regarding Vat.

Following the ruling, the decision was taken to convert the existing office of the Inspection Directorate at Maghbazar to Vat Audit, Intelligence and Investigation Directorate. However, no progress has been made till date.

"The customs intelligence investigated complaints regarding Vat prior to the ruling, now it has become necessary to form a Vat intelligence department. We do not have the authority to investigate any Vat irregularities," said Hafizul Kabir, member ( Vat) of National Board of Revenue (NBR).

"In Dhaka city we have posted one superintendent and three inspectors for each thana. If each thana has one thousand shops and restaurants the three inspectors need one year to cover each area. To collect such a huge volume of Vat, the number of officials must be increased," said a high official of NBR.

The condition of Dhaka is relatively better than in other districts. There is only one superintendent and three inspectors for Vat collection in every two districts. Non availability of vehicles to move freely is a handicap though.

If the intelligence directorate does see light, there will be no new recruits. The superintendents and staff of customs intelligence will be working for the new directorate and gradually manpower would be increased.

It is hoped that the Vat intelligence team will be able to investigate corruption be it in the NBR, government or private sector.

It has been observed in the past that businessmen increased the prices of their products as soon as Vat had been imposed and collected the added amount from the customers. But often they do not want to pay money to the government. Allegations are that some corrupt tax officials are also aiding them in this malpractice.