UNB, Dhaka :
National Board of Revenue has decided to go tough against the business entities which will not install electronic fiscal device (EFD) from November 1 in city corporation areas and from December 1 in district towns.
The government earlier made the use of EFD mandatory in 13 types of business entities from November and December in city corporation areas and in district towns respectively to check Value Added Tax (VAT) evasion.
The NBR has already issued an order in this connection in August.
The new EFD will replace the electronic cash register (ECR) and the point of sale (POS).
The 13 types of businesses included hotels, restaurants, fast food shop, confectionaries, jewelers, beauty salons, furniture shop, RMG shop or boutique shop, electronics shop, community center, all business entities in posh shopping mall, departmental stores, general shop or super shop, wholesalers and large retail stores.
“This will enable the National Board of Revenue to have real-time access to business transactions which will eventually protect revenue leakage and increase revenue collection significantly,” Finance Minister AMA Muhith had said in his speech unveiling
fiscal measures for fiscal 2018-19. If any business entity does not use this EFD or any deviation of using this is proved that entity will have to pay Tk 20,000-50,000. If this kind of offence committed repeatedly then the NBR will lock the Business Identification Number (BIN).
The EFDs will be connected online with a server at the NBR. Any entry from a particular business entity will be registered at the server of the NBR.
“This will bring transparency and the scope to evade the tax will be restricted. As a result the revenue collection will be improved,” a senior NBR official told UNB.
He said that EFDs will help curb evasion because of connection with the server that will generate real time data of sales at shops.
He also mentioned that customers would be able to know if the VAT they paid went to the national exchequer as they will receive a code that would be generated by the NBR’s central server.
The NBR had made the e-cash mandatory in 2008 for 11 types of businesses: hotels, restaurants, confectionaries, jewelers, beauty salons, wholesalers and large retail stores. But the outcome of that decision did not reached at the desired level.
On the other hand, many businesses do not use the e-cash register even after installation to evade VAT allegedly in connivance with field officials of the revenue authority.
The move to install EFD comes following advice from Finance Minister AMA Muhith to introduce an EFD management system to combat non-payment of VAT at the retail and wholesale levels.
National Board of Revenue has decided to go tough against the business entities which will not install electronic fiscal device (EFD) from November 1 in city corporation areas and from December 1 in district towns.
The government earlier made the use of EFD mandatory in 13 types of business entities from November and December in city corporation areas and in district towns respectively to check Value Added Tax (VAT) evasion.
The NBR has already issued an order in this connection in August.
The new EFD will replace the electronic cash register (ECR) and the point of sale (POS).
The 13 types of businesses included hotels, restaurants, fast food shop, confectionaries, jewelers, beauty salons, furniture shop, RMG shop or boutique shop, electronics shop, community center, all business entities in posh shopping mall, departmental stores, general shop or super shop, wholesalers and large retail stores.
“This will enable the National Board of Revenue to have real-time access to business transactions which will eventually protect revenue leakage and increase revenue collection significantly,” Finance Minister AMA Muhith had said in his speech unveiling
fiscal measures for fiscal 2018-19. If any business entity does not use this EFD or any deviation of using this is proved that entity will have to pay Tk 20,000-50,000. If this kind of offence committed repeatedly then the NBR will lock the Business Identification Number (BIN).
The EFDs will be connected online with a server at the NBR. Any entry from a particular business entity will be registered at the server of the NBR.
“This will bring transparency and the scope to evade the tax will be restricted. As a result the revenue collection will be improved,” a senior NBR official told UNB.
He said that EFDs will help curb evasion because of connection with the server that will generate real time data of sales at shops.
He also mentioned that customers would be able to know if the VAT they paid went to the national exchequer as they will receive a code that would be generated by the NBR’s central server.
The NBR had made the e-cash mandatory in 2008 for 11 types of businesses: hotels, restaurants, confectionaries, jewelers, beauty salons, wholesalers and large retail stores. But the outcome of that decision did not reached at the desired level.
On the other hand, many businesses do not use the e-cash register even after installation to evade VAT allegedly in connivance with field officials of the revenue authority.
The move to install EFD comes following advice from Finance Minister AMA Muhith to introduce an EFD management system to combat non-payment of VAT at the retail and wholesale levels.
