Banks urge import of used ATMs
Local banks asked the government to allow import of refurbished financial devices, such as automated teller machines (ATMs), to meet the growing demands of the customers, experts said.
Presently, banks import new ATMs and other equipments, required for setting up point of sales centres, at higher prices. Total tax incidence for importing these items stands at about 50 percent, which includes vat (value added tax), bankers claimed.
The bankers said, the heavy load of taxes pinch them when they see they are not allowed to import refurbished financial devices at cheaper rates.
“If reconditioned computers, cars and other electronics are allowed, why not reconditioned financial devices,” they said.
"We want the government to allow us import of refurbished ATMs and other financial devices to reduce the infrastructural costs so that we can serve our clients better and faster," Reazul Islam, senor vice-president and head of information technology department of AB Bank, told The Daily Star.
Electronic transaction is getting increasingly popular across the world. Many developing countries, including China and India, are trying to build a “cashless society” by introducing ATM, debit and credit cards to avoid risk that carrying cash involves.
This year the banks have decided to for further expansion of their financial services, products and networks.
Five local banks, along with a technology provider Euronet Worldwide, have undertaken a project to set up 505 ATMs and 10,000 plus POS with an investment of Tk 117.3 crore in three years. Hundred of these 505 ATMs will be set up in 2008.
The five banks are: AB Bank. United Commercial Bank Limited, Al Arafa Islami Bank Limited, South East Bank Limited, and Agrani Bank.
Mohammad Alam, member (VAT) of National Board of Revenue, told The Daily Star that VAT on import of any good is only 15 percent.
"It does' t matter whether it is on the import of financial devices or otherwise," Alam said.
He said, however, that the total tax incidence might be around 50 percent, while declining to comment on the issue of permitting import of refurbished ATMs and other financial devices. “This is not in my jurisdiction,” he said.
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