The National Board of Revenue (NBR) will install electronic transaction registers or ‘Electronic Fiscal Device (EFD)’ in business outlets both at the retail and wholesale levels this month to check evasion of value-added tax (VAT).
A shipment of the EFD devices has already arrived in Chattogram port. NBR will start providing the devices to the business outlets after the releasing the devices from the port and completion of other formalities, NBR Chairman Md Mosharraf Hossain Bhuiyan said at a press conference on Sunday.“Some10,000 EFDs would be installed initially,” he said, adding that 90,000 more devices would be placed at the sales counters of stores based on the success of the first 10,000 units.
NBR organized the press briefing to share its plans to observe the VAT Day on December 10 and VAT week from December 10-15.
Marking the VAT Day, the tax authorities will honour the top VAT payers in the fiscal year 2017-18 apart from organizing rallies and other awareness-raising campaigns to encourage VAT payment.
The NBR chairman said VAT collection at the trading stage is 3 per cent of the total annual collection of VAT and installation of EFDs will increase receipts from this area as it will provide actual reporting on sales by large and medium shops.
Replying a query, he said tax officials will make phone calls to every TIN holders from January 2020 to remind them about submitting tax returns.
The NBR chairman also informed that Tk 787 billion was collected from VAT in FY 2018-19. The amount was 39 per cent of the total revenue receipt of Tk 2.203 trillion.The revenue collection target from VAT has been set at Tk 1.176 trillion this fiscal.