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The National Board of Revenue (NBR) is going to install the much-desired Electronic Fiscal Device Management System (EFDMS) shortly with the support of Genex Infosys.
A Memorandum of Understanding (MoU) was signed on November, 2022, to set up the automated VAT collection system in retail businesses. In 2019, Genex was registered as the first publicly listed company in the country's ITeS sector.
Mohammed Adnan Imam, managing director of the technology-based service provider, shed light on the significance of the initiative.
Genex has a goal to implement NBR's target of installing 60,000 EFDMS every year, 0.3 million in next five years, in Dhaka and Chattogram.
Mr Imam said his company is committed to introducing a smart tax payment and collection system.
"We have incorporated artificial intelligence and block chain technology into this advanced system," he said.
Commenting on viability of the collection of VAT through agents, he said currently, taxes are collected through third parties in various ways in Bangladesh.
"Many countries have successfully employed private collection agents to bolster sales tax and VAT collection rates. This tried and tested method enables governments to focus on policy implementation, simplify procedures, and enhance public services," he said.
The company is not merely providing technical support. Its extensive distribution network, comprehensive hardware maintenance, post-sales services, marketing expertise, and proficiency in VAT and tax-related communication and public relations will contribute to increasing VAT collection.
"Our physical interaction with traders is limited to connecting to the EFDs or Sales Data Controllers (SDCs) at their establishments," he said.
This digital system leaves no room for harassment or irregularities, as everything is automated, he added.
The NBR will have access to real-time information, such as the operational status of the EFD or SDC machines, transaction volumes, and opening and closing times.
"We are committed to creating a smart tax payment and collection system, contributing to the vision of a Smart Bangladesh while delivering exceptional service to taxpayers," he said.
"We are solely responsible for reducing the administrative burden on the National Board of Revenue. The NBR maintains transaction information for trade and retail partners, and we have no involvement in that aspect," he added.
He said automated VAT collection system of the company would ensure the utmost protection for trade partner data and transaction.
Genex Infosys acts as a collection agent, providing assistance to NBR officials in revenue collection, he added.
"For us, working as a partner of the government and contributing to the vision of Smart Bangladesh is more important than commercial profit," he said.
Genex, a part of the IPE Group UK, largest business process management and ICT service company in Bangladesh, later diversified itself into various segments in the ICT sector and was trusted by world's leading brands.
Genex expanded its operations in APAC region, managing over 170 million customer interactions in a year.