The National Board of Revenue will set up 300,000 Vat collecting machines in three zones - Dhaka Metropolitan, North and West outside Dhaka and Chittagong Customs Area within five-year tenure to increase value-added tax (VAT) revenue collection.
An Electronic Fiscal Device (EFD), a sophisticated machine for collecting value added tax (VAT) from businesses, was introduced on a pilot basis two years ago.
After its introduction, the National Board of Revenue has assessed that the system has yielded benefits for VAT collection.
After installing the EFD machine, the collection has increased at least five times as compared to the amount of VAT collected earlier.
As a result, the government has decided to install EFD in all businesses that have the capacity to pay VAT across the country. As a part of this, NBR has taken initiative to collect VAT on partnership basis.An information technology company called 'Genex Infosys
Limited' has been appointed as an agent. In this regard, an agreement was signed between the two parties held at NBR's revenue building in Shegunbagicha on Thursday.
Genex will supply and install Electronic Fiscal Devices (EFDs) and Sales Data Controllers (SDCs) or Vat collecting machines at different types of retail shops.
NBR’s Chairman Abu Hena Md Rahmatul Muneem said, “A new chapter in VAT collection has been initiated through this agreement. We will collect VAT through the partnership. In return, the company will receive a share of the VAT collected (sharing). As NBR works for the development of the country, they (Genex) will also work together with us.”
Stating that one VAT machine should be installed in every shop, he said, adding that retail business transactions are not required to invoice it.
“If the use of this machine is confirmed, everyone will be able to show the invoice. This will greatly increase the revenue collection. But it has some challenges. It can be tackled by working together. All kinds of cooperation will be provided from NBR for this,” he mentioned.
Genex will supply and install the machines at its own cost and it will get 0.52 percent to 0.538 percent of the collected money as a service charge in return while depositing it to the government.
It will also carry out the operation and maintenance work as well, said the NBR chairman, adding that the company will also provide training on using EFD to the respective stakeholders.
