Dhaka — Bangladesh’s National Board of Revenue (NBR) is mulling to make electronic payment (e-payment) mandatory for VAT payment from the beginning of next year. In the first phase, VAT on e-payment is becoming mandatory for VAT invoices above Tk1 crore. Later, e-payment will be made compulsory for the payment of VAT gradually.
The company wants to make e-payment compulsory in order to prevent counterfeit shipments and control revenue evasion as well as implement modern methods of paying all types of taxes. A senior NBR source confirmed to media.
According to the NBR’s plan, the amount of VAT on compulsory e-payment will be gradually reduced to bring traders under this process.
From July 2020, the NBR launched an electronic payment system for indirect tax payments. And from July 1 this year, e-payment has been made mandatory for paying more than Tk2 lakh in duties and taxes.
The income tax branch is also working to make e-payment mandatory for paying income tax. The NBR also introduced the Automated Invoice (A-Invoice) system in October 2020.
Taxpayers continue to have the opportunity to pay taxes and fees online through banking channels and mobile financial services. The NBR is also considering making E-invoicing mandatory for individual taxpayers.
NBR officials said the Asian Development Bank (ADB) had recommended payment of VAT above Tk 50,000 using banking channels and MFS to improve VAT collection efficiency and reduce the risk of fraudulent transactions as a condition of loan disbursement.
However, considering the response to the introduction of the NBR system, it was initially decided to fix 1 crore taka. The amount of taka will be determined later taking into account other factors including the feedback of the traders.
The implementation of an e-payment system will play an important role in ensuring internal revenue collection and transparency.