Economy
After tax evasion, Foodpanda now charged for depriving delivery staff
Foodpanda, an online food and grocery delivery platform owned by Berlin-based Delivery Hero, has been charged with a number of problems – from VAT evasion to supplying substandard foods and depriving delivery staff of their due benefits.
Foodpanda collects food and grocery items from around 5,000 restaurants and stores and delivers products to the doorsteps of consumers through riders or delivery workers across the country under an agreement of sharing commission.
Riders, consumers and insiders of Foodpanda have recently shared their bitter experiences.
“Pulling a rickshaw is better than a Foodpanda job,” a rider said to describe how hard work he has to do throughout the week against very poor pay.
Another delivery man said Foodpanda gives him less when a customer gives some tips. Allah blesses the people in the head office,” he says.
“Foodpanda should be sued as it doesn’t fix basic salary for riders,” said a worker.
Just recently, its riders went on a strike in Dhaka, Rajshahi and Sylhet states on an 8-point demand including increasing delivery rates and other benefits. They said they ensured food deliveries defying all adverse situations but the authorities have been denying them rightful demands over the years.
This is not the end of the complaints against Foodpanda. The food and grocery delivery platform is facing numerous complaints from customers because of providing deficient foods and dilly-dallying in refunding the money in case of order cancellation.
Additionally, Foodpanda was charged with overcharging and on September 11, last month the Directorate of National Consumers’ Rights Protection fined the platform in this connection.
Dodges VAT concealing actual sales
The VAT Intelligence Directorate, in October 2020 conducted a drive at Foodpanda’s head office in Gulshan, where they found evidence of evasion of Tk3.4 crore in Value Added Tax (VAT).
A VAT evasion case was filed against Foodpanda Bangladesh Limited by the directorate and the case is still pending.
During the drive, VAT Intelligence authorities smell that Foodpanda has been doing business since 2013 by registering under Code S-099.10, which does not apply to their type of business.
The company was doing it in order to gain the facility of 0pc VAT on rent, the directorate added.
Foodpanda delivers food by using an electronic network (online platform). The code for these sorts of services is S-099.60. According to the law, they were supposed to pay 5pc VAT on the business and 15pc VAT on rent.
During the raid, sales data of Tk27.58 crore was discovered in a computer for the period of July 2019 to January 2020 and April 2020. But Foodpanda only disclosed sales data of Tk15.65 crore during this period.
The VAT directorate also discovered that in 8 months only the company concealed sales data of Tk11.93 crore from the government.
Foodpanda helps restaurants evade VAT
It receives orders through online-based apps like Pathao Food, Sohoj Food and others and delivers them to the doorsteps of the customers. They are supposed to ensure that the government gets due VAT against the sales. But that was not the case.
Foodpanda did not maintain the actual sales data and it does not provide the details in its VAT return statement, according to the VAT intelligence agency.
Hence, the food supply stores also do not show the sales information that comes from the apps in their VAT returns. By doing so Foodpanda is helping hotels and restaurants evade VAT.
“We have recently visited some restaurants from where Foodpanda gets food. We have found that the government is deprived of due VAT,” said an NBR authority.
The NBR has already started verifying electronic fiscal device information of at least 318 hotels and restaurants that supply food to Foodpanda for its customers.
It has already found VAT dodging evidence against Burger Express, Kaderia Cafe, Street Oven, Cheese Restaurant, Ghost House and Pizza King, according to the authority.
Apart from this, the Dhaka North VAT Commissionerate is investigating whether these hotels and restaurants are evading VAT in collaboration with Foodpanda, Pathao Food, Sohoj Food and other online food service providers.
The overall situation could be worrying for Foodpanda, which claims to be Asia’s largest food delivery company, as it is having a tough time in several other Asian countries, including Myanmar, Thailand, and Hong Kong.
After several phone calls and text messages, Ambareen Reza, co-founder and CEO of Foodpanda Bangladesh, replied in a message that one of her relatives survived a heart attack and she could not comment anything now.
Bangladesh and Qatar signed 10 cooperation documents on Tuesday, including five agreements and five MoUs, aimed at strengthening ties and elevating relations to new heights.
Prime Minister Sheikh Hasina and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani witnessed the signing of the documents.
The five agreements cover cooperation in the legal field, promotion and protection of mutual investments, avoidance of double taxation, maritime transport, and the establishment of a Joint Business Council (JBC) between FBCCI & QCCI.
The five MoUs include cooperation in sports and youth, manpower employment (Labour), diplomatic training, education, higher education, scientific research, and between Qatar Ports management Company “MAWANI QATAR” and Chittagong Ports Authority.
Earlier in the morning, PM Hasina warmly welcomed and received Emir Sheikh Tamim at her office.
They had a tête-à-tête meeting at the Prime Minister’s Office, followed by a bilateral meeting.
After signing the visitors’ book, the emir headed for Bangabhaban where the president received him.
A high-level Qatari delegation led by Qatar’s emir is on a state visit to Bangladesh at the invitation of the president and the prime minister.
During the ceremony, a road and a park in Dhaka were named after Emir of Qatar Sheikh Tamim Bin Hamad Al Thani.
The park, constructed in Kalshi area of Mirpur under Dhaka North City Corporation, and the road from Mirpur ECB point to Kalsi Fly Over were named after Emir of Qatar.
Now, the road and park are known as Sheikh Tamim Bin Hamad Al Thani Avenue and Sheikh Tamim Bin Hamad Al Thani Park.
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) is urging for greater involvement of marginal, small, and medium enterprises in international trade fairs. This initiative aims to spotlight Bangladesh’s promising products on the global market.
FBCCI President Mahbubul Alam made the call during the first meeting of the organisation’s Standing Committee on National and International Trade Fairs and Foreign Delegations. He emphasised the need to provide marginal, small, and medium enterprises with the space and resources to effectively display their products at these events.
“The participation of marginal, small, and medium enterprises is crucial at both national and international levels,” Mahbubul Alam said. “This will allow us to export Bangladesh’s promising products and open new markets.”
The FBCCI president informed that his organisation is actively discussing and collaborating with the government to make this a reality. He also proposed organising roadshows in neighbouring countries and Europe to revive the country’s handicraft industry and increase export opportunities for these products.
Standing Committee Chairman Nuruzzaman echoed Mahbubul Alam’s sentiments, highlighting Bangladesh’s vast potential and young population. “We need to move beyond the garment sector and focus on product diversification and market creation,” Nuruzzaman said.
Achieving this, he acknowledged, will require close collaboration with the Export Promotion Bureau, Ministry of Foreign Affairs, and Bangladesh Investment Development Authority.
FBCCI Senior Vice President Md Amin Helaly pledged the organisation’s support in facilitating increased exports through participation in foreign trade fairs. He stressed, however, the importance of raising awareness among Bangladeshis about the country’s diverse and promising products.
The meeting concluded with an open discussion where participants expressed keen interest in organising and participating in various sectoral fairs, both domestically and internationally, under the FBCCI’s umbrella.
Bangladesh’s Ambassador to the United States (US), Muhammad Imran, has urged Bangladeshi expatriates to send remittances through legal channels to further strengthen the country’s economy. He also encouraged them to showcase the country’s success stories to enhance its image abroad.
Speaking as the chief guest at the Customers’ Gathering and SECI App Campaign of Sonali Exchange at the Bangabandhu Auditorium of the Bangladesh Embassy in Washington DC on Friday evening, Ambassador Imran emphasized the importance of sending remittances legally.
The event, jointly organized by the Bangladesh Embassy in Washington DC and Sonali Exchange, a subsidiary company of Sonali Bank, aimed to raise awareness about sending remittances to Bangladesh through legal channels.
Sonali Bank’s Chief Executive Officer (CEO) and Managing Director, Md. Afzal Karim, attended the event as a special guest, while Devasree Mitra, CEO of Sonali Exchange Company Incorporation, USA, delivered the welcome address.
Ambassador Imran highlighted Bangladesh’s significant progress across all sectors over the past decade and a half under the visionary leadership of Prime Minister Sheikh Hasina. He emphasized the positive achievements and changes that have occurred in the country during this period.
Imran stressed the importance of sharing Bangladesh’s success stories globally, believing that doing so would elevate the country’s stature on the international stage. He noted Bangladesh’s victorious history, achieved through the Liberation War under the leadership of Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
Bangabandhu’s vision of establishing “Sonar Bangla” (Golden Bengal) free from hunger and poverty remains a driving force for the nation, Imran stated, expressing confidence that Bangladesh is steadily progressing towards this goal.
The event saw participation from a large number of expatriate Bangladeshis residing in Washington DC and its neighboring states. Counsellor and Head of Chancery Shamima Yeasmin Smrite conducted the proceedings.
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