DHAKA, Dec 6, 2023 (BSS) - Collection of Value Added Tax (VAT) has increased while transparency in VAT collection has been brought after installation of Electronic Fiscal Device (EFD) machines.

Currently, the average VAT collection per EFD machine is Taka 50,000 per month. Earlier, the amount of VAT collection per month was only Taka 4,000 to Taka 5,000 for per EFD machine in the respective shops.

Member of VAT implementation and IT department of the National Board of Revenue (NBR) Dr Moinul Khan said this at a 'Meet The Press" held at the NBR Bhaban in the capital's Agargaon marking the VAT Day and VAT week 2023.

Speaking on the occasion, Dr Moinul said, "Due to the establishment of EFD machines, VAT collection has increased in the concerned business establishments while transparency has also increased."

He claimed that the EFD machines have already been proven to be a more effective method than before in terms of VAT collection.

Dr Moinul informed that a total of 18,000 EFD machines have been installed so far while some 60,000 EFD machines will be installed in the current tax year.

 "Machines are being installed in three regions in Dhaka and Chattogram. If it is successful, EFDs will be installed at the district and upazila level," he said.
 
Moinul said that it is not known whether the invoices that are written on paper have been deposited in the government treasury. "But, we're getting the invoice related information if the purchase is made through EFD machines. So, EFD is a very effective method for collecting VAT," he said.

In response to a question, Moinul Khan said, "Recently, imports have declined by 30 percent in some cases. However, due to the adoption of some strategies, VAT collection did not decline, rather has increased by 17 percent even though imports dropped."

He also noted that VAT collection has increased due to the prevention of VAT evasion, expansion of net and especially strengthening of monitoring.

Member of NBR (VAT Audit) Md. Sahidul Islam said, "We've taken the initiative to dispose of the related cases quickly in order to increase the VAT collection and already judgments of several cases has come in favor of the government, which is playing a positive role in VAT collection."

Highlighting various initiatives and programmes taken by the NBR marking the VAT Day and VAT Week, NBR Chairman Abu Hena Md Rahmatul Muneem said that the theme of this year's VAT Day is "Amar VAT Ami Dibo, Kenar Somoy Chalan Nibo".

He said such slogan has been fixed this time since the NBR wants to create awareness among people on VAT.

Requesting all to collect VAT invoices while purchasing any service or product, the NBR chairman said, "There is a tendency among us not to collect challans or vouchers while purchasing anything. But, it is easy to deposit the VAT amount to the state coffer if the invoice is collected. So, I'll request the countrymen to take the invoices while shopping. At the same time, I'll request all to purchase from those shops which have EFD machines."

Mentioning that around 38 percent of the government's annual overall revenue collection comes from VAT, Muneem said that the size of the development budget is increasing day by day.

 "The country's economy is growing. More money is needed to implement the extended budget. In this case, VAT holds the first place among the internal sources of revenue collection," Muneen added.

He also said that the field-level officers and employees of the Revenue Board and VAT department are working tirelessly to achieve the revenue targets with utmost professionalism and service rendering attitude.

The NBR chairman said that the revenue board has chalked out different programmes marking the VAT Day and VAT Week this year. These include sending SMS on mobile phones, holding programs in media to raise public awareness about VAT, publication of special supplements, honoring the best VAT payers, hanging stickers, billboards, banners and festoons in different parts of the country including in the capital.

The VAT Day will be observed on December 10 while the VAT Week will continue from December 10 to 15.