Almost half the shops are yet to install electronic cash register (ECR) machines even after more than four years the system was made mandatory.
A survey conducted by National Board of Revenue has found that a huge number of shops and food centres still do not e-register transactions with their customers.
The use of ECR machines had been made mandatory for stores and food outlets since July 2009 to boost collection of value added tax (Vat).
“Nearly 50% of retailers still do not use ECR in transaction with their customers,” said an NBR official citing the survey findings. He added the slow progress in introducing e-cash register in the shops helped continue the Vat evasion.
The government asked 11 types of business to compulsorily use ECR and point of sales software in an order four years back.
The businesses include hotels, restaurants, sweetmeat shops, furniture outlets, beauty parlours, community centres, all shops located at a mega shopping malls in the metropolis, departmental stores, general stores, big and medium-size wholesalers and retailers at the metropolis and jewellers.
The revenue body asked the shops to immediately launch ECR system, said the official, adding that Vat commissionerates were also directed to monitor the implementation and report any noncompliance.
Under the system, the businesses concerned will have to give the printed transaction slips to the respective customers.The customers have also been asked to take ECR-printed slips from the shops and to complain at the NBR if denied the slips by the shops. Due to lack of inspectors, the monitoring of ECR system had been disrupted, according to the NBR officials.
Not using of ECR system is an offence under the Vat Act 1991.
“We are instructed to conduct field level inspections and fine the non-compliers, but the number of inspectors is very few, and the shops are taking the chance,” said an official.
The section 26 of Vat Act 1991 states the NBR will go to field inspections to check whether businesses are evading taxes by not implementing the ECR system. The section 37 says the non-compliance will be considered an offence and the NBR will take legal actions against the shops which are not using ECR or POS software.
But the businesses said the tax authority had not clarified the definition of medium-size businesses.
This is why they could not install the system in the medium-sized shops.
ECR has already been implemented at the big shops, claimed SA Kader Kiron, chairman of Bangladesh Dokan Malik Samity.
“But we have decided not to install the ECR system and POS software at the medium-sized shops until we do not get clarification from NBR on what would be considered as medium-sized shops,” he told the Dhaka Tribune.
“For the effective implementation of ECR, clarification is necessary,” he stressed. According to SA Kader Kiron, most of the people purchase goods from medium-sized shops and these consumers are not interested to pay Vat.
“We pay package Vat from our own incomes. So, we will install the system in the medium-sized shops after having a clear definition of medium-sized shops,” he added.