Abdul Monem Limited, the company behind the popular Igloo ice cream brand, has been accused of evading approximately BDT 457.2 million in revenue over four fiscal years (2019-20 to 2022-23). This includes unpaid supplementary duties, VAT, and withholding VAT. Additionally, the company allegedly failed to pay BDT 8.9 million in withholding VAT for two fiscal years. The National Board of Revenue (NBR) has issued a show-cause notice to the company.

According to the NBR’s Customs, Excise, and VAT Commissionerate (Dhaka East), Igloo ice cream used undeclared quantities of milk to produce ice cream but did not pay taxes on the excess. An audit of the company’s annual reports, VAT returns, and related documents revealed discrepancies. For example, from 2019-20 to 2022-23, the company owes BDT 110.1 million in supplementary duties and BDT 347.1 million in VAT for ice cream produced with undeclared milk.

The report also identified irregularities in the company’s VAT documentation. For instance, it showed higher purchase costs in its VAT returns than in its annual reports, amounting to BDT 1.18 billion. Delayed VAT filings further incurred an additional BDT 759,066 in interest. The NBR has given the company until January 10 to respond.

Igloo’s COO, Shamim Ahmed, denied the allegations, explaining that changes in raw materials, such as substituting whole milk powder for butter oil during supply chain disruptions, were properly declared. He stated that the company paid more VAT than required and attributed the discrepancies to misunderstandings by VAT officials.

The NBR Commissionerate, however, emphasized its commitment to addressing non-compliance among companies, regardless of their size. Igloo, originally established in 1964 by a Pakistani entrepreneur, was acquired by Abdul Monem Limited in 1982 and has been a leading ice cream producer in Bangladesh ever

since.