The NBR would fine and even shut up shops on their failure to submit VAT returns in time. It has also asked medium and small wholesalers to make disclosure about estimates of their projected monthly sales and VAT returns by November 30.

Shop owners went on a series of strikes in July-August to press the government to rescind the new budgetary provision that brings the shops under the VAT net.

At the end of last month, a meeting between the president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), leaders of shop owners' associations and the NBR high officials decided that those shops with a daily sales of over Tk 10,000 would have to pay VAT at the rate of 1.5 percent on their actual sales. They would also have to keep sales register and file VAT returns along with tax invoice on a monthly basis.

Those with daily sales between Tk 1,000 to Tk 10,000 are to disclose to the authorities their projected VAT returns for the fiscal year through their associations. The shop owners have been told to clear the VAT for five months by December and then submit their returns monthly.

Those with sales below Tk 1,000 a day would have to pay the minimum VAT stipulated in the budget.

The new measures would be put into force in all shops across the country.

According to NBR's primary estimates, Tk 800 crore can be realised as VAT from the wholesale and retail traders. Whereas, in the last fiscal, the VAT collected from this sector amounted to only one-tenth of the estimates or Tk 80 crore.

NBR sources said that the decisions would be communicated to the regional offices by this week and that the VAT collection drive's thrust would be on Dhaka and Chittagong regions.

They said only a handful of some 250,000 retail and wholesale shops in Dhaka City pay VAT. However, jewellery and sweets shops, colour labs and medical laboratories pay the taxes separately.

An NBR survey recently identified some 3,000 shops in the capital with daily sales of Tk 10,000, who would be sent notice from tomorrow. The VAT officials would sit with the owners of these shops next week to get their feedback on the measures.

It has also been decided that wholesalers and retailers of MS rods would pay Tk 100 a ton as VAT against Tk 300-500 paid presently. Traders of MS rods would be notified of the decision shortly.