Now Google-Facebook-YouTube will also have to pay VAT

The High Court has ruled in favor of Google, Facebook and other Internet-based social media, including e-commerce, to collect all kinds of taxes, VAT and other revenue from such organizations in accordance with the prevailing laws of Bangladesh.

Sunday (November 8) Justice. The High Court dual bench of Justice Ashraful Kamal and Justice Rajik Al Jalil passed the verdict after a final hearing of the writ petition filed in the public interest. Barrister Mohammad Humayun Kabir Pallab appeared for the writ petitioners.

Barrister Mohammad Humayun Kabir Pallab told reporters that the verdict was against Google-Facebook and other internet-based companies for tax evasion and to bring about a revolutionary change in Bangladesh's revenue collection. The court has issued five directions to the defendants, declaring the rule appropriate for the final hearing of the writ petition filed in the public interest.

In the first phase, it was said that all internet service providers such as Google-Facebook, YouTube, Amazon companies will have to collect all kinds of taxes, VAT and other revenue from the money paid according to the prevailing law of Bangladesh. Relevant government departments including National Board of Revenue, Bangladesh Bank, BTRC have been asked to implement the order.

In the second phase of the directive, Internet-based companies will have to collect arrears of revenue from Bangladesh in proportion to the amount paid in the last five years.

In the third phase, the National Board of Revenue will submit a progress report in the form of an affidavit every six months on the collection of such revenue.

In the fourth clause, the court said, the judgment would remain in force as an ongoing order or a continuous mandate.

In the fifth point, the court said, in case of any deviation in the implementation of the verdict, any citizen of Bangladesh can file an application to the court at any time and seek redressal.

Incidentally, in 2016, a newspaper report was attached and a writ petition was filed highlighting various cases of tax evasion by Google-Facebook around the world. Supreme Court lawyer Barrister. Humayun Kabir Pallab, Barrister Mohammad Kawsar, Barrister Mohammad Majeedul Quader, Barrister Md. Six lawyers, including Sajjadul Islam, filed a writ petition in the High Court in the public interest.

The writ petition named Finance Secretary, Governor of Bangladesh Bank, Chairman of National Board of Revenue, Law Secretary, Secretary of Posts and Telecommunications, Chairman of BTRC, Information Secretary, President of Bangladesh Newspaper Owners Association, Google, Facebook and Yahoo.