Pubali Bank Disputes NBR Claim Over Excess VAT Interest Demand

In an ongoing financial dispute within the banking sector, Pubali Bank PLC has officially disputed an excess interest claim exceeding Tk 3.5 crore that was demanded by the National Board of Revenue, commonly known as the NBR. The contentious financial demand originates from value-added tax amounts that the commercial bank had already paid to the government authorities following a targeted audit conducted by the Central Intelligence Cell, also referred to as the CIC.

According to the verified details of the fiscal transaction, Pubali Bank previously deposited a total of Tk 2,69,83,799 through an e-challan directly into the government treasury. This substantial sum represented the value-added tax collected specifically from non-resident individuals or institutions over an extended operating period spanning between 2017 and 2022. Despite the successful remittance of the principal VAT amount, tax authorities subsequently issued the massive excess interest demand.

In response to the mounting financial pressure from the revenue board, the management of Pubali Bank has taken formal administrative action. The bank dispatched an official letter directly addressed to the NBR Member for VAT Policy, formally registering its strong objection to the cumulative interest demand. Within the correspondence, the banking institution has urged the senior tax policymaker to review the case thoroughly and reconsider the validity of the financial assessment.

The underlying tax controversy involves complex financial figures and extended timeframes documented during the Central Intelligence Cell inquiry. The specific audit findings and subsequent communications reference a duration of 96 months, which equates to exactly eight years of financial operations. Furthermore, the administrative records highlight various monetary calculations, including a distinct sum of Tk 3,22,86,480, alongside specific regulatory timeline references such as a maximum period of 24 months.

As this high-stakes financial disagreement unfolds in Dhaka, Bangladesh, the resolution now rests upon the administrative review requested by the commercial bank. The formal intervention directed to the NBR Member (VAT Policy) represents the primary channel through which Pubali Bank seeks to overturn the disputed interest assessment. Stakeholders across the banking and taxation sectors are closely monitoring the administrative response to the bank's formal appeal for reconsideration.