NBR collected VAT worth Tk100cr via EFD in Q1

Economic Reporter :
Through the country’s Electronic Fiscal Devices (EFD), VAT totalling Tk100 crore was collected in the first three months of the current fiscal year (July-September).
Data analysis indicates that in September, the NBR’s VAT department collected Tk37 crore in VAT through the EFD machine.
This collection totalled Tk33 and Tk30 crore in July and August, respectively.
The Tk700 crore in items sold from the retail and wholesale levels where EFD machines were placed contributed to the Tk100 crore in the first quarter (Q1) of the current fiscal year.
According to NBR sources, 7,800 VAT machines are already installed in various businesses in different areas including Dhaka and Chittagong and another 2000 more EFD machines will be installed soon.
These imported machines have already arrived at Chittagong port and will be redeemed by next week.
VAT officials now supervise all matters including the sale of EFD machines in the traditional manner and they believe that the automatic system will increase the overall VAT collection.
Requesting anonymity, an official of NBR also told that “A large amount of VAT evasion happens at the retail and wholesale levels. If we can install more EFD machines across the country, the collection from this sector will increase several times and this will be possible if all businesses at the retail and wholesale levels can be brought under this system.”
On August 25, 2019, EFD machines were installed on an experimental basis in various businesses in Dhaka and Chittagong to increase VAT collection.
However, installation of EFD machines started two years ago but progress remained slow due to the pandemic, the NBR official claimed.
But significant progress will be visible in the current year, he added.
A total of 10,000 EFDs have been planned to be installed in various businesses by June 2023.
Genex Infosys to collect VAT
The government appointed local IT service provider Genex Infosys to set up Electronic Fiscal Devices (EFD) to keep accounts of the value-added tax (VAT) on behalf of the National Board of Revenue (NBR) for three years.
The three-tier commission for this organization begins with 0.52%, followed by 0.529% and 0.538%, respectively, during the three-year period.
EFDs will be installed in businesses with daily sales of more than Tk17,000 on average.
The IT service provider will install 300,000 devices in various shops and sales outlets in three regions of the country: Dhaka Metropolitan, North and West outside Dhaka and Chittagong Customs Area.