11 firms to make VAT software

After a delay the National Board of Revenue (NBR) yesterday named 11 firms that will be eligible to develop software for businesses to help them maintain accounts and keep records of value-added tax.

The move comes four months after the revenue authority asked businesses with more than Tk 5 crore in annual turnover to use software on a compulsory basis in a bid to automate the VAT system. At that time, the NBR had directed companies to comply with the directive from January 1, 2019.

Since the software developers were not selected, businesses were unable to comply with the directive.

It took time to finalise the names of the software developers and enlist them, said Syed Mushfequr Rahman, project director of the NBR's VAT Online Project.

“We will not take measures against the businesses for not automating their systems because of the delay. But we will take measures if they don't use the prescribed software from now onwards,” he added.

UY Systems, Ennova Technologies, Dhrupadi Techno Consortium, Symphony Softtech, UniSoft Systems, Mediasoft Data Systems, Best Business Bond, CSL Software Resources, Allied Information Technology, Jubosoft Information Systems and Divine IT are the eligible VAT software-makers.

A five-member panel headed by the commissioner of the Large Taxpayers' Unit of VAT gave approval to the firms.

“We have sent letters to the firms after selecting them,” said Showkat Ali Saadi, a member of the committee, and first secretary for VAT Implementation and IT of the NBR.

The panel had received 27 applications. Of them, 17 were short-listed. Later, 11 were finalised after their presentations.

“We have proposed to the NBR to keep the door open so that the firms that couldn't get listed this time can enlist themselves after improving their capacity. We don't want anyone to create a monopoly. We want a competitive environment.”