Retail VAT collection surges 10 times after EFD rollout

The National Board of Revenue has started to benefit from the installation of electronic fiscal devices (EFDs) at retail levels as the collection of value-added tax has climbed 10 times, a top official said today.

Now, the tax administration is getting around Tk 50,000 a month from each shop using the device, said Moinul Khan, member for VAT implementation and IT at the NBR.

Before the introduction of EFDs, monthly VAT receipts were Tk 4,000-Tk 5,000 from each shop, he said.

The tax collector has installed about 18,000 EFDs at the retail level to bring transparency in VAT collection, he said at a press briefing organised to unveil programmes to celebrate VAT Day and VAT Week 2023 at the NBR headquarters.

The NBR will observe VAT Day on December 10 and VAT Week from December 10.

In August 2020, the NBR began installing the devices and initially installed 100 EFDs at stores and businesses in Dhaka and Chattogram.

It plans to set up 60,000 more EFDs this fiscal year ending in June and another 3 lakh in the next five years.

The EFDs are provided free of cost to 25 types of businesses, including shops, hotels, restaurants, sweet stores, clothing, furniture and electronics outlets and jewellers.