Dhaka Boat Club Limited, once led by former Inspector General of Police Benazir Ahmed, evaded more than Tk 26 crore in VAT between 2019 and 2022, according to the National Board of Revenue (NBR).
An NBR audit found that between July 2019 and June 2022, the club spent Tk 203 crore, of which Tk 178 crore was subject to VAT. However, the club did not pay any VAT over that period. Officials said the unpaid VAT was only discovered after the fall of the Sheikh Hasina–led Awami League government, when Benazir lost influence.
“Since influential Benazir Ahmed was its president, no one dared to raise the VAT claim,” said NBR officials, noting similar silence over the club’s illegal occupation of 11 acres of government land on the Turag riverbank in Savar.
The NBR report said the club deliberately avoided VAT and used time extension requests to delay the process. The unpaid VAT amount was detected through an audit conducted in November 2022, which was submitted in May 2024. The total unpaid VAT and duties stood at about Tk 26.07 crore including Tk 1.04 crore in VAT on services and Tk 25.01 crore in VAT deductible at source.
A show-cause notice was issued on September 10, 2024, but the club skipped multiple hearings, asking for repeated extensions without submitting any supporting documents. A re-evaluation committee was later formed, which upheld the NBR’s findings.
The club argued that membership fees should be treated as donations and therefore be VAT-exempt. The NBR rejected the claim, stating that donations are non-refundable and do not provide a service in return. In this case, membership and privileges were granted directly in exchange for payment, making VAT applicable.
The audit report said the club violated multiple sections of the VAT and Supplementary Duty Act, 2012, the VAT Rules 2016, and several directives issued under SRO 149 and SRO 240.
Following the assessment, the NBR ruled that more than Tk 25.70 crore remains recoverable and initiated legal proceedings. On 21 September last year, the club held its first executive election since its formation a decade ago, electing businessman Nasir Mahmood unopposed as president. Mahmood was previously linked to the Porimoni case.
Club president blames Benazir, NBR
Speaking to The Times, Nasir Mahmood said the VAT issue originated during Benazir Ahmed’s presidency, claiming he ignored VAT officials and took no initiative to resolve the matter. Mahmood alleged that the NBR had issued the demand notice in a targeted manner. He said the club sent multiple letters to NBR but received no response, forcing it to file a writ petition in the High Court.
Kazi Farid Uddin, commissioner of the Customs, Excise and VAT Commissionerate (Dhaka West), confirmed that the matter is now under court review, with all documents forwarded to the government lawyer.
