The National Board of Revenue (NBR) has initiated ways to avoid VAT dodging in business sectors. They have identified 100 business houses that avoid the complexity of VAT transparency by setting up Electronic Fiscal Device (EFD) machines.
This ultra-modern device will be set to bring transparency in VAT collection process. As a piloting project, a total of 80 companies have been identified under the Dhaka West and Dhaka South VAT Commissionerate and 20 companies in Chittagong.
A senior NBR source confirmed that the Electronic Fiscal Device (EFD) machines would be installed at all kinds of super shops, restaurants, fastfoods, outlets of local manufacturers, automotive garage-workshops, advertising agencies, community centers, confectionery and goldsmiths.
Meanwhile, an emergency meeting was chaired by the Chairman of the National Board of Revenue (NBR) Abu Hena Md Rahmatul Muneem on February 19 in this issue. Officials of the EFD project including board administration, VAT policy, VAT audit and intelligence, VAT implementation and IT, VAT online project director were present in the meeting. The issue was discussed in detail at the meeting. As soon as possible, it is decided to move forward with the EFD installation in order to speed up VAT collection. A senior NBR official said as a piloting project 100 business houses were selected in the meeting to set EFD.
NBR Member Jamal Hossain said, “The EFD machine was to start from the beginning of this fiscal year but the data center of NBR's VAT online project could not be completed on time. Because EFD machine placement is high-tech, it is risky to go into operation without completing proper trial runs. For this we will start the proper trial run of the EFD and set it up.”
The Commissioner of Dhaka West VAT Commissionerate Dr Moinul Khan said, “The EFD would be user-friendly for traders and buyers. The transparency of the business as well as the satisfaction of the buyers would be ensured. Because EFD is more business friendly, I think there will be chain effect in revenue collection.”
SZZT, a Chinese-based technology company, is providing the EFD machine. Last year, NBR ordered a total of 10,000 EFD machines. Of these, 100 machines have already arrived in the country. The rest of the machines will arrive within the next few months. NBR will launch EFD in 25 types of business establishments, from department stores to large trading establishments to prevent VAT dodging. The government is spending Tk317crore to buy 10,000 EFD machines. EFD is mandatory for those who have been using Electronic Cash Register (ECR).