Twenty four different types of service-oriented institutions are primarily getting 10,000 electronic fiscal devices (EFD) in a bid to curb VAT dodging in the country.
National Board of Revenue (NBR) has already prepared a list of the institutions that will first get the device, a major tool for implementing new VAT law, NBR sources said.The number of EFDs will gradually rise to 10 lakh as mentioned by Finance Minister AHM Mustafa Kamal while he announced national budget for FY20.
Work order has already been given to Chinese company SZZT Electronics Company Ltd to supply 10,000 EFDs as the first consignment. Local company Synesis IT will jointly work with the Chinese company, source said.
The institutions getting EFDs include residential hotel, restaurant and fast food shop, shopping centres and shopping malls, departmental stores, community centres, sweet vendors, jewelleries, furniture shop, courier and express mail service, coaching centres, beauty parlour, health club and fitness centres,
Also, decorators and caterers, motor cars workshop and garages and dockyards, advertisement firms, printing press and binding, social and playing clubs, RMG marketing, electrical and electronic household items vendors, general store and super shop, large and medium business entities, mechanized laundry, cinema halls and security service companies are on the list.
Basically, use of EFDs will be made mandatory for those who would use electronic cash registers (ECR), according to NBR.
EFD is a modern device that will directly be linked to NBR’s VAT online project, which will help curb dodging of value added tax (VAT, a major concern for the NBR struggling with revenue collection. It will make NBR officials able to control the machines sitting in their own office. There will be Electronic Business Identification Numbers (BIN) against EFDs. The BIN number will remain the same even though any institution has more than one EFD.Besides, EFD machines will get authorization numbers and it won’t be possible for them to print VAT receipts anyhow, NBR officials informed.
NBR officials claimed that there is no scope of avoiding VAT because tempering the EFD machines is not possible. If the machines go out of order, the concerned institutions have to replace them with their own cost.
There will be a central server where VAT inputs will be given. Printing of VAT chalans from this server won’t be possible without its NOC. So, businessmen won’t be able to erase any data from EFD, they added.
“It will be possible to rein in VAT evasion with the EFDs and revenue collection will increase at the same time. We hope to get success from EFD machines although we were not successful with ECRs,” commented an NBR Member.
For success of the EFD machines, he also suggested consumers to be aware in collecting VAT chalans, if they pay VAT. He hoped that the new machines may come in the next month.
The ministry of finance has already allocated Tk 100 crore to install EFDs in different institutions.
According to new VAT Law, any business entities having Tk 50 lakh annual transaction have to install EFDs at their institutions.