NBR orders installation of e-cash registers

---

Doulot Akter Mala
The National Board of Revenue (NBR) has issued an order on installation of electronic cash register (ECR) in large and medium business houses in a bid to check evasion of Value Added Tax (VAT).
The board issued a Statutory Regulatory Order (SRO) Wednesday making it mandatory for installation of electronic cash register by five service sectors, which will be effective from July 1, 2008.
The business community has hailed the NBR decision on installation of the machine to thwart VAT evasion.
Business leaders have expressed their optimism over substantial increase in VAT collection as it will bring transparency in business transaction.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Mir Nasir Hossain said: "It is our proposal to install electronic cash register to resolve misunderstanding between taxmen and the businesses."
It will make the business activities transparent, he said.
Initially, five service sectors will collect VAT through the method in Dhaka. It includes hotel, restaurants, sweetmeat shops, furniture shops and beauty parlours.
Large business houses and departmental stores will come under the system later.
Sources said VAT evasion by the five service sectors is higher.
The NBR is being deprived of about 80 per cent of VAT from the five particular areas while the overall VAT evasion from service sector is 50 per cent, they said.
The government received higher VAT at local stage.
In the last fiscal, the board collected VAT worth about Tk 125.06 billion and the target set at Tk 128 billion for the current fiscal.
The VAT was introduced in 1991 on services and products.
Currently, the government collects VAT at a rate of 15 per cent from the service sector.
The board will paste two stickers on the front and back side of the counter in the shops using electronic cash register with a note -- 'collect your voucher' and 'pay VAT if you sell product'.