From Jul 1, the beginning of the fiscal year 2019-20, VAT law will be implemented. To add transparency to the system, technology based Electronic Fiscal Device (EFD) will be introduced in the new fiscal year.
Previously, Electronic Cash Register (ECR) was introduced, but this will now be replaced by EFD machines.
Finance minister AHM Mustafa Kamal has said that the new VAT law will be introduced in the new fiscal year since disagreements with traders have been settled.
Initially, the NBR faced opposition in implementing the new VAT act and, therefore, many adjustments were made to the law.
President of leading business platform, FBCCI, Helal Uddin, said, “We want to see the National Revenue Board (NBR) implement the new VAT act to ensure infrastructural facilities.”
Since EFD machines will be directly linked to the NBR server, traders won’t be able to evade VAT and unscrupulous officials will be unable to harass traders.
Against each EFD, a trader will be given a Business Identification Number or BIN. Each machine will have a special NBR code and with this, officials of the Customs Excise and VAT Commissionerate will be able to keep track of the VAT payment information of registered companies.
President of the Bangladesh Shop Owners’ Association, Helal Uddin, said: “There are 3 million members of our association; business which have less that Tk 5 million in transactions will be outside this law.”
If this is implemented then 80 percent traders/shop owners will fall outside the law and for the remaining 5 to 6 lakh, EFD will be used, he added.
In the 2019-20 fiscal year, there will be five layers in VAT, the lowest is 2 percent and the highest, 15 percent.
A total of 1983 products have been kept outside the purview of the new VAT law.
NBR chairman, Mosharraf Hossain Bhuiyan, observed: “There will be five layer VAT from the current fiscal year but sector wise VAT cannot be disclosed now; gradually, all institutions will be given EFD machines."