The National Board of Revenue (NBR) currently derives 38% of its total revenue collection from value-added tax (VAT). Despite this substantial contribution, there exists a significant opportunity to enhance the collection even further.
In pursuit of this goal, the NBR has set a target to deploy 30,000 electronic fiscal devices (EFD) and sales data controllers (SDC) machines by the end of this calendar year. NBR Chairman Abu Hena Md Rahmatul Munim emphasized the urgency of this initiative to expedite overall machine installation.
Speaking at a press conference held at the Revenue Building in Dhaka's Agargaon on Wednesday, the NBR chairman announced observing National VAT Day on December 10 and the subsequent National VAT Week from December 10-15 throughout the country.
The NBR has devised a range of programs to commemorate these events, emphasizing the slogan, “We will pay VAT, take invoice during purchases.”
Providing insights into the success of the EFD machines, NBR member Moinul Khan highlighted the positive impact on businesses, stating that the businesses, which used to pay Tk5,000-6,000 per month in VAT, now pay Tk50,000 monthly after installing EFDs.
As of now, the NBR has successfully installed 18,005 EFDs and 500 SDC machines.
The remaining 30,000 machines are slated for installation in December 2023, marking a significant step toward achieving the NBR's enhanced VAT mobilization objectives.
Imports have recently decreased by about 30%, yet there was a 17% growth in VAT collection in the last five months, Khan informed.
He also said that this progress has been made due to increased monitoring and including more business organizations under the scope of imposing VAT.
Asked whether the ongoing political unrest will affect revenue collection, NBR Member Masud Sadiq said that while it is common to see better revenue collection during stable political conditions, sales of cigarettes and soft drinks sales tend to increase during political unrest.
NBR members Zakia Sultana and Shahidul Islam also spoke at the press conference.
The NBR officially handed over the responsibility to Genex on August 22, 2023, to accurately collect VAT from retail and wholesale businesses.
During VAT Week, as part of their motivational program, taxpayers would be made aware of VAT Day and National VAT Week through SMS in their mobile phones from December 10-15.
Besides, initiatives have been taken to conduct publicity through radio, television, print and online media. Apart from this, stickers and leaflets are also being distributed.
141 top taxpayers
During the briefing, the NBR also announced the names of 141 highest tax-paying companies and individuals, for fiscal year 2022-23.
Beating many top businessmen, Kaus Miah, owner of old Dhaka-based Hakimpuri Jarda (chewing tobacco), received the top taxpayer award, continuing this trend for the past couple of years.
The NBR on Tuesday issued a statutory regulatory order (SRO) with the names of top taxpayers under different categories.
The NBR selected the taxpayers as per the National Tax Card Policy-2010 (amended). But the highest taxpayers in legal dispute have been dropped from the winners' list as per the policies.
Based on income tax payments in fiscal year 2022-23, a total of 141 taxpayers-76 individuals, 53 companies and 12 in other categories- won the tax card.
