The NBR chief said that currently only 3% of total VAT came from domestic trade at retail and wholesale levels. “The use of EFD will increase the percentage to 10-15%,” he added
The National Board of Revenue (NBR) is going to start installation of electronic fiscal devices (EFD) at shops for automated value added tax (VAT) collection this month.
NBR Chairman Md Mosharraf Hossain Bhuiyan disclosed this while addressing a press conference on Sunady at the NBR office, marking VAT Day on December 10 and VAT Week from December 10 to 15.
“We have a plan to install 10,000 EFDs immediately, and we hope to set up 100,000 devices in this fiscal year,” he said, adding that a shipment of EFDs had already reached Chittagong port.
Mosharraf said more EFDs would come in phases.
The NBR chief said that currently only 3% of total VAT came from domestic trade at retail and wholesale levels. “The use of EFD will increase the percentage to 10-15%,” he added.
An EFD can maintain account of businesses and count VAT automatically. The NBR made the use of the device mandatory for 24 types of businesses, including hotels, restaurants, clothing stores and supers shops, as part of VAT and Supplementary Duties ACT 2012.
Mosharraf said the automation would increase the total VAT collection, which was the largest source of revenue income.
Last year the NBR collected Tk220,313 crore in revenues, in which VAT contributed Tk78,694 corer, a 39% of the total revenue, he informed.
The tax to GDP ratio was 7.23 in 1991, the year the NBR introduced VAT, he said, adding now it increased to 10.
Asked about shortfall of revenue, the NBR chairman said they could not fulfill target in the first quarter but attained a 4.3% growth.
“We are trying and working hard. Hopefully, we can achieve the target by the end of the fiscal,” said the NBR chairman.
On income tax, the NBR chairman said all the taxpayer’s identification number (TIN) holders would be forced to submit their tax returns, no matter whether they had taxable income or not.
“Our officials will phone the TIN holders who will not submit returns from the next month,” he said, adding that the officials would request the TIN holders and ensure their returns submission.
He informed that the number of TIN holders was now 46 lakh, whereas only 22 lakh TIN holders submitted their returns.
Besides, the revenue board chairman urged the businesspeople to cooperate with the NBR as the board was facilitating the country’s businesses through providing different advantages.