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Businesses to get more time for installation of ECR, POS

  • Published at 07:44 pm January 16th, 2016

The National Board of Revenue (NBR) plans not to become harsh on the eligible traders and business establishments who are yet to install neither the Electronic Cash Register (ECR) nor Point of Sales (POS) machines within the stipulated deadline expired on January 15.

The businesses have already requested the authorities concerned to extend the timeframe for installing the machines.

As asked, NBR Chairman Nojibur Rahman told the Dhaka Tribune that the field offices were already asked to work on the installation of ECR with highest priority.

“We’ve received very positive response from the traders in introducing the new system. We’re having discussion with the businesses, chambers and associations, so the entire process can work very smoothly,” he said.

 “We’ll soon write to the Finance Minister AMA Muhith with a request for extending the deadline to install of ECR and POS and the minister will decide and approve a fresh deadline,” he added.

The NBR targets to collect Tk1,76,370 crore revenue, including Tk64,262 crore as VAT, this fiscal year.

During the last month, the NBR had directed the field offices to ensure installations of the electronic mechanisms in all eligible shops by January 15 following a decision of the fiscal coordination council of the finance ministry.

However, a large number of business establishments and traders are yet to install the electronic mechanism although the deadline expired two days back.

But, the traders said, “We’ve failed to install the machines within the stipulated deadline as those machines are very much expensive and also not available in the market.”

Under such a circumstance, NBR field level commissionerates, who are responsible for monitoring the installation, have requested the authorities concerned to simplify the approval procedure to encourage more traders using the mechanism.

In July 2009, the NBR made it mandatory for 11 types of business to install and use ECR machine and Point of Sales (POS) software to boost the VAT collection.

The businesses include-hotels, restaurants, sweetmeat shops, furniture outlets, beauty parlours, community centres, all shops located at mega shopping malls in the metropolis, departmental stores, general stores, big and medium-size wholesalers and retailers at the metropolis and jewelers.

The technology was introduced to prevent evasion of VAT collected from the consumers by the shopkeepers as the manual system of accounting used at the outlets leaves room for tax evasion.

It is, however, widely reported that a large number of businesses skips the installation while many of those, who have already installed the machines, do not use ECR during financial transactions blaming the machines as faulty.

The NBR field offices have identified 11,005 shops eligible for using the technology, among which, 8,559 were selected for ECR installation. Of the 8,559 shops, only 2,970 have installed the mechanism, according to the NBR data.