The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Bangladesh, in association with National Board of Revenue (NBR) jointly hosted an introductory event and awareness session on the recently launched NBR's VAT e-Payment System.
HSBC Bangladesh, one of the pilot banks of this project was the first Bank in the market to make live transaction on this platform.
NBR which collects taxes in the country, along with Bangladesh Bank, has taken this remarkable initiative to digitalise the VAT payment process ensuring that overall VAT payment collection becomes more efficient and convenient for end users.
In the virtual event, NBR also made a short presentation to educate the participants about how the VAT e-Payment System works.
Currently, VAT payments are primarily collected through physical instruments (e.g. pay order or bank cheque) which are more manual, time consuming and error-prone in nature.
Through HSBC's eVAT proposition, businesses and organisations will be able to quickly complete VAT payment through HSBCnet, HSBC's online platform for corporates.
The payment will be received by the NBR's account for VAT held in Bangladesh Bank electronically. Upon completion of a successful transaction, the client will immediately receive an SMS with a VAT challan number and subsequently will receive an email with challan copy particulars.
Each transaction will be completed near real-time through Real Time Gross Settlement (RTGS) transactions, instead of two to three days which is typical for payments using physical instruments.
The virtual session was attended by Mr Abu Hena Md Rahmatul Muneem, Senior Secretary, Internal Resources Division & Chairman, National Board of Revenue (NBR) as the Chief Guest and Mr Md Mezbaul Haque, General Manager, Payment Systems Department, Bangladesh Bank as the Special Guest.
Mr Yasir Azman, Chief Executive Officer, Grameenphone, Mr Kedar Lele, Chief Executive Officer & Managing Director, Unilever Bangladesh, Mr Rajesh Surana, Chief Executive Officer, LafargeHolcim Bangladesh, Mr Fazlur Rahman, Chairman, City Group, Mr Mostofa Kamal, Chairman, Meghna Group, Md Mahbub ur Rahman, Chief Executive Officer, HSBC Bangladesh, were present along with other senior officials.
"Taxpayers will no longer need to physically visit Bangladesh Bank or Sonali Bank to deposit cash or Pay Orders. VAT authority will be able to gather accurate information on the payments made by the taxpayers through the IVAS," said Mr Abu Hena Md Rahmatul Muneem, Senior Secretary, Internal Resources Division & Chairman, NBR.
"The VAT e-Payment System will play a critical role in ensuring accountability, transparency and establishing trust between taxpayers and VAT officials, as a result, it will create a business friendly environment," he added.
"Bangladesh Bank is proud to join NBR in this remarkable initiative to digitalise the VAT payment process ensuring that overall VAT payment collection becomes more efficient and convenient for end-users," said Mr Md Mezbaul Haque, General Manager of Payment Systems Department.
"We look forward to continue to collaborate with other regulators, business bodies and banks in this digital journey and also work in areas of policy improvement. I would like to thank HSBC to be part of this digital journey," he added.
"At HSBC we want to make banking simpler, faster and better for our customers, and we are committed to continuing to play our part in accelerating the digitisation of banking in Bangladesh," said Md Mahbub ur Rahman, Chief Executive Officer, HSBC Bangladesh.
HSBC has committed to bringing newer innovative digital solutions to both global and local clients.