Within six months, the National Revenue Board (NBR) will start collecting real-time data from VAT machine projects. According to NBR, if this initiative is effectively implemented, at least Tk20,000 crore more in VAT will be collected into the state coffers.
An agreement was signed on Thursday between the NBR and technology company Genex Infosys Limited to install Electronic Fiscal Device (EFD) and Sales Data Controller (SDC) machines in various shops and sales outlets in three regions of the country: Dhaka Metropolitan, North and West outside Dhaka, and Chittagong Customs Area; and collect those machines' real-time data.
The contract was signed by Genex Infosys Chairman Chowdhury Fazle Imam and NBR member (VAT) Dr Moinul Khan.
According to the agreement, in the first year, 20,000 VAT machines will be installed in each zone. Meaning a total of 60,000 machines will be installed in the three zones.
In accordance with the deal, 300,000 VAT machines will be provided and placed in three zones over the course of five years, with a total of 1,00,000 in each zone.
The supply and installation of VAT equipment will be extended under the tender to the surrounding areas of the zone if the desired registrable business entities cannot be identified in that zone.
The signing event was presided over by Abu Hena Md Rahmatul Muneem, chairman of the NBR.
The use of VAT machines has been made mandatory by the NBR for the establishment of an automatic, software and online-based value-added tax system in all city corporation areas and district towns of the country, according to the NBR chairman, with the goal of creating a digital Bangladesh.
Regarding the earlier VAT machines, he said that 100% operation was not achievable from the installed machines due to a lack of habit among users, a lack of interest, and a lack of consumer awareness.
Pratim Lala, general manager of Technology at Genex Infosys told Dhaka Tribune: “We have already started work, but from today you can say that our journey has officially started. However, we have a few more tasks to do before starting the installation of the machine in business entities.
By this time, we have to set up the data server in the NBR office, where the real-time data entry will be stored. Then we will start installing the machines after several rounds of checking and rechecking whether it is working at the field level.
“It is quite technical work. However, we hope to complete it within the next few months. After that, the installation of SDC and EFD machines will start.”
Answering a query related to when the installation of machines will start in business entities, he said: “Hopefully, we will be able to start installing the machine in the business entities within the next six months.”
Earlier, the National Board of Revenue (NBR) appointed local IT service provider Genex Infosys to set up Electronic Fiscal Devices (EFD) to maintain value-added tax (VAT) records for three years.
The three-tier commission for this company starts at 0.52% and increases over a three-year period to 0.529% and 0.538%, respectively.
Businesses with typical daily sales of above Tk17,000 will have EFDs installed.
