The National Board of Revenue (NBR) Sunday encountered strong opposition from businessmen on the issue of mandatory installation of Electronic Cash Register (ECR) in medium and wholesale shops.
Business leaders and shop owners urged the government to keep the use of ECR optional for a certain period instead of making its installation mandatory from the start.
The shop owners also made a strong plea for rationalising the method of gross profit (GP) determination. Presently the tax rates are between 30-35 per cent of the turnover, which, according to businesses, are irrational rates.
They made this suggestion at a workshop, arranged in the customs, Vat and excise commissionerate Dhaka (south), on the use of ECR.
NBR chairman Muhammad Abdul Mazid, who attended the programme as chief guest, said: "There is still enough scope for discussing the issue. The revenue board will be flexible and give sufficient time to familiarise the businesses with ECR use."
In an official order, the NBR made installation of ECR mandatory in the medium and wholesale business outlets from July 01 this year.
If necessary, the government will split the time frame to enable gradual installation of ECR, he said.
"We will not impose any system, which seems unrealistic to the businesses," the NBR chief said.
ECR will ensure collection of VAT from the consumers by providing transparent information on sales volume, he said.
Executive Secretary of Bangladesh Dokan Malik Samity, MA Kader Kiron said: "There should be a specific definition of medium shops in which the NBR wants the ECR to be installed."
The NBR introduced Value Added Tax (VAT) in 1991. After that, the board introduced participatory system for payment of Vat by the medium-size shops in 2002.
Those shops have been paying Vat at a rate of Tk 4200, Tk 3600, Tk 2400 and Tk 1200 through their respective associations on the basis of their locations.
"If mandatory installation of ECR is introduced then what will be the fate of Vat payers under participatory system," he wanted to know.
Since 2002, the NBR did not hold any meetings with the businesses to determine the definition of medium business, he said.
The government should have discussed with the businesses before introducing the system, he added.
Amir Hossain Khan, president of Dokan Malik Samity, said: "The NBR should make the system 'optional' instead of compelling businesses to install ECR."
There are huge loopholes in the ECR law, which should be minimised through discussion, he said adding that the government should have faith on business community.
Wholesale shop owners keep a marginal profit on their sale, so it is not possible for them to install ECR for payment of VAT, he said.
