Revenue authority plans to curb VAT evasion through automation
Businesses told to install device that will connect NBR server
The National Board of Revenue in a bid to curb Value Added Tax (VAT) evasion has made it mandatory for business institutions to install electronic devices in their establishments to keep record of their sales.
The new VAT collection process has come into effect on July 1 this year.
The modern devices will directly be linked to the revenue board's central VAT online project. The revenue board authority will receive notification of each sale from the devices.
Two types of devices will be installed. These are sells data controller and electronic fiscal devices.
Sells data controller is a small cash register device which would record data of sales and tax.
On the other hand, an electronic fiscal device also functions the same way as sells data controller but it is cheaper and does not require any maintenance cost.
Sources at the revenue board said business entities with more than five crore taka annual turnover will install sells data controller while the entities with less than five crore taka will install electronic fiscal devices.
"There will be no scope of tampering data in these devices. After entering any input, the revenue board authority will be notified. The business institutions cannot dodge VAT and have to send the collected amount from the consumers to government exchequer," said Syed Mushfiqur Rahman, director of the VAT online project.
Five hundred business institutions with high turnovers are installing sells data controllers at their own cost in line with the directive from the revenue authority.
Electronic fiscal devices will be installed in institutions under the supervision of the revenue board. The establishments will repay the amount to the national revenue board in instalments. Each electronic fiscal device would cost Tk20,000.
Two lakh business entities with more than Tk50 lakh turnovers will have to install these devices.
"Work order has already been given to a Chinese company through tender to install 1lakh devices. They will connect 10,000 devices in first consignment within two months. The rest 90,000 will be supplied soon.
Another tender for more 1lakh devices will be circulated after the first supply," said the National Board of Revenue Chairman Md Mosharraf Hossen Bhuiyan.
The revenue authority will provide the business institutions with business identification number (BIN) against the devices. Same BIN will be used against more than one device.
The revenue collection board will also provide special code against each device. By this, the revenue authority officials will be able to access data from the devices sitting in their own office.
There are over 30 lakh shop owners under Shop Owners' Association. Ten lakh shops are not enlisted under the association.
According to sources, 20 percent of 40 lakh shops have turnovers over Tk50 lakhs. They will provide 5-6lakh devices to the shops in stages.
If any establishment violates the rule, revenue authority will take action as per section 37 of VAT law. They can fine the non-compliant establishments minimum amount of Tk20,000 and maximum Tk50,000 besides collecting the VAT amount.
Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) appreciates the move of the revenue board.
"We also want transparency in business. The installation of devices will stop corruption of both sides besides curbing VAT dodging," said Vice-President of FBCCI Siddiqur Rahman.
The Cabinet Committee on Purchase has approved a project of Tk320 crore for purchasing and installing the devices at a cheaper price.
