EFD to be installed in business units for transparent VAT collection
Dhaka: The government has taken an initiative to install Electronic Fiscal Device (EFD) in business units for ensuring transparency in VAT collection system as the highest portion of revenue is collected from VAT and Supplementary Duty.
Finance Minister AMA Muhith announced the new initiative while placing the budget for the next fiscal in Parliament on Thursday, reports the UNB.
He said the target for the National Board of Revenue (NBR) for the next fiscal has been set at Tk 296,201 crore. The highest revenue of Tk 110,543 crore will come from VAT while Income Tax and Other Direct Taxes will contribute Tk 102,201 crore.
The import and export tax will provide Tk 32,589 crore to the national exchequer while supplementary duty will contribute Tk 48,766 crore, excise duty Tk 2,091 crore crore and Turnover Tax will Tk 11 crore.
Among all the revenues collected by NBR, he said, the highest portion of revenue is being collected from VAT and supplementary duty.
‘As part of digitalising the VAT administration to strengthen the revenue base, the government has taken initiatives to introduce VAT Online system,’ he said.
Muhith mentioned that 105,000 units have already availed of online VAT registration facility.
The Finance Minister said the NBR collects almost 85 percent of the total revenue and the impetus of revenue collection has been quite good in recent years.
‘The average growth of NBR revenue collection in this decade is more than 17 percentages, which is the highest in last 4 decades. As a result, our tax-GDP ratio is increasing gradually although not to our satisfactory level.’
The Finance Minister put emphasis on the collection of adequate revenue from internal sources to continue current economic progress. ‘We’ve emphasised collection of revenue not by increasing tax rate but through expansion of tax base and encouraging self-compliance by reforming the existing tax system.’
He mentioned that the number of registered tax payers and return submission has increased beyond our expected level.
The number of registered tax payers is more than 35 lakhs now. ‘I hope the number of registered taxpayers and return submission within the next five years would be one crore and eighty lakhs, respectively,’ he said.
Muhith said people’s trust in income tax system, especially spontaneous participation of young generation in tax payment, is giving us a very positive signal.
He said initiatives have been taken to compile the English version of The Customs Act 1969 in Bangla. The draft of the proposed new Act has already been completed. ‘But it’s not likely to be passed this year.’