Sources said initially 154 large VAT paying companies have been brought under the purview of the large tax unit (LTU) to assess and ensure proper collection.

The government formed the LTU to better collection and monitoring of income tax from large taxpayers in line with International Monetary Fund's (IMF) conditions to qualify for loans under poverty reduction growth facility (PRGF).

The LTU formally launched operation in the income tax sector covering 1200 large income taxpaying institutions and individuals.

The identified 154 VAT payers will now have to pay VAT to the new LTU commissionerate located at Segunbagicha instead of the earlier VAT circles. The NBR has issued letters asking the organisations to start depositing VAT from October onwards to the LTU.

The identified organisations include 31 banks, 24 insurance, leasing and other financial institutions. The rest belong to different manufacturing and service companies. Of these, 30 organisations are based outside Dhaka.

The NBR recently asked to submit VAT records of past three year of these companies on any arrears, irregularities or tax evasion.

The NBR will hold a meeting next week for management of these 154 companies and to inform them about the new system.