Manama, March 23 (BNA): The National Bureau of Revenue conducted 495 inspection visits to the local markets of the governorates during the months of January and February.
The campaigns resulted in the reporting of violations that necessitated the imposition of administrative fines in accordance with the value-added tax and excise tax law, in addition to monitoring many suspicions of value-added tax and tax evasion that may require the precautionary closure of many companies.
NBR will take legal action against the offending companies, and refer those who are found to have committed one of the offenses of evasion to the appropriate authorities to initiate a criminal case against them.
The accused may face imprisonment for five years and a fine equal to three times the amount of VAT due according to the Value Added Tax Law, or one year imprisonment and a fine equal to twice the amount of the evaded tax according to the Excise Law.
These campaigns are organized as part of NBR’s ongoing oversight efforts to protect consumer rights, enhance the level of trade compliance and ensure effective implementation of VAT and taxes.
The implementation of VAT and excise taxes included the scheme of digital stamps on cigarette products to ensure that companies are aware of the system and the mandatory presence of digital stamps on all cigarette products available in the local markets, in addition to spreading the necessary awareness of the procedures to be followed.
These efforts come as part of regular inspection and monitoring procedures using the advanced tools that NBR has adopted during inspections.
Inspection tools contribute to addressing tax evasion, and preventing the possession, trade, sale or supply of products that have not met VAT or tax obligations, which includes the scheme of digital stamps on cigarette products in local markets that came into effect on October 16. 2022.
The National Statistical Organization confirmed the continuation of inspection campaigns with the aim of urging all companies registered with the agency to adhere to the application of legislation to prevent violations and ensure the success of the various stages of implementation.
ZHB