The National Board of Revenue (NBR) has decided to install 10, 000 electronic fiscal devices (EFD) at shops in Dhaka and Chattogram by March this year for automated value added tax (VAT) collection.

“We have a plan to install 10,000 EFDs by March and we hope to set up more EFDs in phases in the current fiscal year,” said a NBR official.

The NBR sources said currently only three percent of the  total VAT comes from domestic trade at retail and wholesale levels. The use of EFD is likely to increase the VAT amount by 10-15 percent.

The automation would increase the overall VAT collection, which is the largest source of revenue income. In 2019-20 fiscal year, the NBR collected a total Tk 218,408.94 crore revenue in which VAT contributed Tk 1,09,846 crore.

In the current fiscal year 2020-21 the NBR has targeted to collect a total of Tk 3, 30,000 crore revenue of which the VAT wing has been tasked to collect Tk 1, 25, 162 crore.

NBR member (VAT Policy) Abdul Mannan Shikder said steps have already been taken to speed up the installation of EFD in Dhaka and Chattogram to streamline value added tax (VAT) collection online as it will stop dodging of VAT by dishonest businesses.

"We're hopeful that VAT collection would go up significantly if we're able to bring all business establishments under EFD network in phases," said the spokesperson.          

Electronic fiscal devices are widely used in many countries to check evading of VAT. An EFD is able to maintain account of business establishments and calculate VAT automatically. As part of VAT and Supplementary Duties ACT 2012, the NBR made the use of the device mandatory for 24 types of businesses, including hotels, restaurants, clothing stores and supers shops.

Meanwhile, the NBR is going to hold the first draw of the lottery of EFDMS on February 5.

The first draw will be held based on the printed invoices coupon issued from January 1 to 31.

The revenue authorities have introduced this EFDMS ((Electronic Fiscal Device Management System) to popularise VAT system and ensure transparency in VAT collection.

It has been decided to hold the lottery draw every month on printed invoices issued from EFDMS to motivate people in paying VAT through using these EFD machines.

Based on the invoices issued in print from the first day to last day of every month, the lottery will be held subsequently on the 5th day of the following month.

The NBR also requested the consumers to preserve the invoices or lucky coupons carefully issued from the EFD/SDC machine (Sales Data Controller)

On December 6, 2020, the NBR announced 100 prizes to encourage buyers to ask sellers for receipts against purchases.

The first highest prize is Tk 100,000, second highest prize is Tk 50,000 and the NBR will give one prize for this category. The money for the third prize will be Tk 25,000 and the NBR will issue five prizes for this category.

The prize money for the remaining 94 prizes will be Tk 10,000 each.