NBR’s e-cash register project flounders

The electronic cash register (ECR) machine was just there on the sales counter of the eating joint, but the cashier seemed least bothered about providing sales receipts.At one point, though, one of the customers did ask for one and the cashier got himself all worked up. “I’m sorry, there is a problem with the machine,” he said, while instructing one of his aides to fix the cable of the ECR.In the meantime, he served more customers; and neither he nor the customers were bothered with the receipt from the ECR. The use of such cash registers has been made mandatory for stores and eating joints more than five years ago to ensure that the value-added tax goes to the national coffer.After fiddling with the cable for a good 20 minutes, the ECR, apparently, was still not up and running, so the customer had to leave — without the receipt.This, however, is not an isolated case. Rarely do the businesses comply with the rule of providing electronic sales receipts to customers, spurred to a great extent by the absence of monitoring by the National Board of Revenue.The massive drive that accompanied the onset of the rule in 2008 to motivate the businesses, too, faded over time.So far, 3,100 ECRs or point-of-sale machines have been installed against its target of 9,000, said a senior official of NBR on condition of anonymity.“The rate of installation of ECR or POS has been very slow. And the ones that have been installed are gathering dust—the level of compliance is just embarrassing. We are embarrassed with the whole ECR fiasco.”
The official went on to condemn the store operators’ lack of honesty for the failure of the ECR. “Is it possible for us to assign inspectors at every store to check compliance?”
Some revenue officials, however, pointed to the unholy alliance among businesses and VAT inspectors or revenue officials, as ECR-based transactions hurt the interests of both: electronic transaction records bar taxmen from demanding bribes from store operators to cover their VAT evasion.But this issue is simply swept under the carpet; officials are more interested in, unfairly, blaming the consumers for their lack of awareness.“Customers do not force sellers to provide electronic sales receipts.They should come forward to ensure that the VAT they pay are recorded properly,” said Shahnaz Parveen, the commissioner at the commissionerate of customs, excise & VAT in Dhaka (South).But, as is practice, if a customer demands VAT receipt for transactions, they are asked to pay additional amount to their bills.The NBR officials, however, said that should not be the case as the VAT is included in the prices that the restaurants, food courts and stores charge.“That is the whole point of the ECR,” said Muhammad Abdul Mazid, a former chairman of NBR and a vociferous supporter of ECR.“ECR was introduced to save time of inspectors. At the same time, it was for the benefit of sellers and to give confidence to the consumers that the VAT they pay go to the state coffer.”He said the benefits of ECR cannot be reaped without proper enforcement.