3 lakh EFDs to be installed at super shops, stores to enhance tax collection

The National Board of Revenue has decided to install some 3 lakh Electronic Fiscal Devices (EFDs) in three areas of Dhaka and Chittagong to enhance collection of VAT and supplementary duties from the respective business entities.

The cabinet committee on economic affairs on Wednesday disclosed the decision. The cabinet committee meeting was presided over by Finance Minister AHM Mustafa Kamal.

After the meeting, additional secretary of the cabinet division, Md Abdul Barik told journalists that NBR would float tenders to select vendors for collecting VAT and supplementary duties through the EFDs in some selected Dhaka and Chattogram areas.

He said the government will provide remuneration for the vendors for collecting VAT and supplementary duties.

It is not possible for NBR to collect this money across the country, he said.

Barik said the private vendors will collect those duties from the business entities and put it in the exchequer.

NBR made the decision to install some 10,000 EFDs in Dhaka, Chattogram and other large cities in this FY in a bid to prevent Ad Valorem taxes evasion.

Finance minister AHM Mustafa Kamal in the proposed budget of 2022-23 has kept an allocation for installing EFDs in various chain stores and super shops.

EFD is an improved version of Electronic Cash Register or ECR, which is imported by the NBR.

If EFD is used in business, VAT proceeds will automatically be transferred to the main server of the NBR.