The New Nation - Internet Edition

THE introduction of electronic cash registers (ECR) at retail shops and service centres, would benefit sellers and buyers as well as the government. The National Board of Revenue (NBR) has started enforcing compulsory use of electronic cash registers at big and medium- sized shops in the six city corporations from the fist day of the New Year. Some 3,000 business establishments are being covered. According to reports, ECRs would be at the district level from August.

This modern cash registers would replace traditional system of manual cash dealing. ECRs would store transaction records at least for four years. It is intended to strengthen collection of value added tax as a major source of revenue earning. The NBR hopes that it would improve the level of efficiency in VAT collection. ECRs would also make cash handling at business organisations easier and quicker, discouraging pilferage and develop taxpaying habits. It is also likely to create a business-friendly confidence among buyers, sellers and the government.

The shop owners association does not seem to be much enthusiastic about the idea. According to an office-bearer of the association, it would not be easy for retailers to use such a sophisticated technology in busy hours of transactions. However, to make the introduction of the system smooth, ECRs should be made available at affordable prices. It is believed that technical feasibility of the system has been studied. Precaution should be taken against tampering with the machines and manipulation of records. It should be handled in a way that does not reduce or retard VAT collection instead of enhancing it. In the absence of precautionary measures the system may end in a failure.