Fiscalisation for better business transparency
Aftab Ul Islam | Tuesday, 22 July 2008
Introduction of Electronic Cash Register (ECR) system is one of the most important decisions made by the government of Bangladesh. This step, however, is not taking the right course here as its implementation such a large scale is a hefty task for any professional organization including National Board of Revenue (NBR). More than 30 countries worldwide including Italy, Greece, Brazil, Argentina, Russia, Turkey, etc, have learned from each other's experience, engaging experts, in and out of their countries to navigate project for reaping the successful outcome to benefit the people. This process is called fiscalization.
Fiscalization will start to solve one of the most sensitive and most complex problems in Bangladesh, inherited from long term instability - gray economy market, which is slowing erection of modern market structure and institutions within the country. Specially programmed fiscal cash register or fiscal printer (for POS) is designed by the manufacturer to be user-friendly in the first place and customer friendly by printing clear information on the receipt in the second place. All necessary information is also provided in order to simplify VAT collection.
All pre-requirements are yet to be met for the successful start of this project. Rule book for the format of fiscal receipt, machines to meet specification, content of service book and recordkeeping method have to be adopted. The latest technology should be introduced, using devices which will transfer daily turnover from each machine directly using their unified communication channel, safely and wirelessly to the NBR, avoiding random field control by tax police and massive paperwork for the tax payers. Wireless control will make tax collecting more efficient and open door-oriented to many smart investment strategies which should build up the lifestyle of Bangladeshis.
Special fiscal committee has to be formed to approve only machines which comply with specification and to control licensed suppliers and authorized technicians who are playing important role in fiscalization, providing adequate service to their users (taxpayers) and offering range of cash registers and printers to suit everybody's business needs. The NBR has a huge responsibility to protect taxpayers by making use of these machines mandatory. Furthermore it has also protect their investment by licensing proper sales and service network to handle such implementation and address system maintenance tasks.
Besides struggle against gray economy and corruption, fiscalization will help fulfill the demand for market balance and make equal business opportunities available for every entrepreneur. The people of Bangladesh must wake up and organize to become the role model in this region and start securing brighter future for the new generations to come.
Last but not the least, the end-users who are paying for goods or services will have receipt with clear information about:
- Name and the place of seller
- Seller's Tax Identification Number
- Machine Registration Code (unique for each sales register machine)
- Description, quantity, tax rate label, price
- Specification of tax rate
- Taxable Amount
- Tax Amount
- Total Amount
- Day, month, year, hour and minute of sales transaction
- Consecutive number of fiscal receipt
- Fiscal logo - to make sure this genuine receipt will contribute with tax amount for building new roads, hospitals, schools.
The writer is Director, FBCCI and Former President, AmCham
Fiscalization will start to solve one of the most sensitive and most complex problems in Bangladesh, inherited from long term instability - gray economy market, which is slowing erection of modern market structure and institutions within the country. Specially programmed fiscal cash register or fiscal printer (for POS) is designed by the manufacturer to be user-friendly in the first place and customer friendly by printing clear information on the receipt in the second place. All necessary information is also provided in order to simplify VAT collection.
All pre-requirements are yet to be met for the successful start of this project. Rule book for the format of fiscal receipt, machines to meet specification, content of service book and recordkeeping method have to be adopted. The latest technology should be introduced, using devices which will transfer daily turnover from each machine directly using their unified communication channel, safely and wirelessly to the NBR, avoiding random field control by tax police and massive paperwork for the tax payers. Wireless control will make tax collecting more efficient and open door-oriented to many smart investment strategies which should build up the lifestyle of Bangladeshis.
Special fiscal committee has to be formed to approve only machines which comply with specification and to control licensed suppliers and authorized technicians who are playing important role in fiscalization, providing adequate service to their users (taxpayers) and offering range of cash registers and printers to suit everybody's business needs. The NBR has a huge responsibility to protect taxpayers by making use of these machines mandatory. Furthermore it has also protect their investment by licensing proper sales and service network to handle such implementation and address system maintenance tasks.
Besides struggle against gray economy and corruption, fiscalization will help fulfill the demand for market balance and make equal business opportunities available for every entrepreneur. The people of Bangladesh must wake up and organize to become the role model in this region and start securing brighter future for the new generations to come.
Last but not the least, the end-users who are paying for goods or services will have receipt with clear information about:
- Name and the place of seller
- Seller's Tax Identification Number
- Machine Registration Code (unique for each sales register machine)
- Description, quantity, tax rate label, price
- Specification of tax rate
- Taxable Amount
- Tax Amount
- Total Amount
- Day, month, year, hour and minute of sales transaction
- Consecutive number of fiscal receipt
- Fiscal logo - to make sure this genuine receipt will contribute with tax amount for building new roads, hospitals, schools.
The writer is Director, FBCCI and Former President, AmCham