The National Board of Revenue (NBR) has made the installation of Electronic Fiscal Devices (EFDs) or Sales Data Controllers (SDCs) mandatory for all highway restaurants to curb tax evasion and improve Value Added Tax (VAT) collection.
The decision follows complaints from consumers that many highway eateries do not issue electronic VAT invoices, leading to improper tax deposits. According to the NBR, many of these establishments operate 24/7, collect VAT from customers, but fail to submit the full amount to the government.
To ensure proper VAT collection, NBR Chairman Md Abdur Rahman Khan recently instructed that all hotels and restaurants along highways install EFDs or SDCs. The VAT Implementation Division has directed field-level commissioners to oversee the installation process, monitor daily transactions, and ensure accurate VAT submission.
Genex IT has been assisting the NBR in installing EFDs and integrating transaction data into the Integrated VAT Administration System (IVAS). The interim government is taking multiple steps to strengthen the economy, including identifying new taxpayers, adjusting VAT rates, and cracking down on tax evasion.
Consumers are urged to request electronic invoices when dining at highway restaurants. The NBR warns that without an official VAT receipt, the tax paid by customers may not reach the treasury. To encourage compliance, the NBR will continue its monthly lottery, rewarding VAT-paying consumers with prizes drawn from EFD-generated invoices.
In a related move, the NBR is also mandating EFD installations in jewellery shops nationwide to enhance revenue collection. Initially, devices will be installed in shops across Dhaka, Narayanganj, Narsingdi, Munshiganj, Manikganj, Savar, Gazipur, Mymensingh, Netrakona, Kishoreganj, Sherpur, Tangail, Jamalpur, Chattogram, Cox’s Bazar, Bandarban, Khagrachhari, and Rangamati.
A meeting with the Bangladesh Jewellers Association (Bajus) on January 7 addressed sector-specific challenges, including VAT policies, baggage rules, and gold imports. Bajus representatives acknowledged that many jewellery businesses remain unregistered for VAT. They agreed that registering these businesses and implementing EFDs could boost government revenue while fostering sector growth. The association has already submitted a list of jewellery establishments to the NBR.
Currently, Bangladesh has just over 500,000 registered VAT payers, though many eligible businesses remain outside the system. The NBR chairman has repeatedly expressed dissatisfaction with VAT collection levels. According to NBR data, local VAT revenue reached Tk 36,676 crore by December 2024, falling short of the Tk 52,558 crore target and lagging behind the Tk 39,453 crore collected in December 2023.
Bd-pratidin English/ Jisan
