NBR beats target for revenue receipts

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NBR beats target for revenue receipts

Star Business Report
The National Board of Revenue has achieved a big success in revenue receipts, 27 percent or around Tk 3,000 crore more than the target, in the first six months of current fiscal year.
If the trend continues, NBR will be able to realise more revenues than the target at the end of the current fiscal year, said NBR Chairman Nasiruddin Ahmed.
During July-December, the revenue administrator collected Tk 33,550 crore in revenues, up from Tk 26,394 crore in the same period of the previous fiscal year.
The body set a target to gather Tk 72,590 crore in revenues in fiscal 2010-11, which was fixed at Tk 30,720 crore for the first six months.
Ahmed disclosed the information at a press meet at its conference room in Dhaka yesterday.
The revenues collected from income taxes saw a growth of 34 percent, the highest this time. Realisation of value-added-tax (VAT) increased by 34 percent at local level while the collection went up 27 percent at import level.
“The higher the income tax collection the more it contributes to build a society,” the chairman said.
“It was the result of NBR’s sincere efforts.” He said NBR officials are no more confined to office-based duty and frequently go on field trips that lessened fears among taxpayers. “It boosted revenue collections,” he said.
He also said the tax collection process had been made simpler. The electronic tax collection has been introduced in many cases. These actually helped the organisation collect the revenues at all levels, he added.
The NBR has taken many people-based programmes this time, which helped increase the number of income tax returns submissions, said NBR member Basir Uddin Ahmed.
The number of submissions as of December 2010 was 9.83 lakh, up from 7.72 lakh in the same-year-ago period, he said.
NBR’s income tax policy member Aminur Rahman said the target for revenue earnings from the sector will not fall short despite a recent fall in the share market.
NBR made the tax projection from the share market anticipating a daily transaction of Tk 1,500 crore. The average daily transaction will maintain the projected rate, regardless of a decrease in transactions in recent times, Rahman added.
Another NBR member, Farid Uddin, said: “In future we will attach highest emphasis to income tax.” Mentioning the NBR team’s recent visit to South Africa, he said only 4 percent of the tax comes from import level and 24 percent from VAT. “Income tax provides the rest.”
NBR member (customs) Hussain Ahmed said the tenure of pre-shipment inspection system has been extended to December 2012. The appointment of a new company is now under process, he said.

Bangladesh, UAE sign agreement on avoidance of double taxation

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Bangladesh, UAE sign agreement on avoidance of double taxation
Unb, Abu Dhabi
Bangladesh and the United Arab Emirates signed the avoidance of double taxation deal yesterday to boost the bilateral trade between the two countries.
Foreign Minister Dipu Moni and UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan inked the deal.
Dipu Moni and Prime Minister Sheikh Hasina went to the gulf country to attend the Fourth World Future Energy Summit.

Govt targets Tk 92,847cr in revenue next fiscal

http://www.newagebd.com/2010/apr/16/busi.html#1

Govt targets Tk 92,847cr in revenue next fiscal
Staff Correspondent
The government is likely to set a revenue target of Tk 92,847 crore for the next financial year’s budget, said finance minister Abul Maal Abdul Muhith on Thursday.
The target is 16.81 per cent higher than that of the current fiscal year, for which the government set a revenue target of Tk 79,481 crore.
Muhith revealed the new revenue target at a pre-budget meeting with lawmakers in the finance ministry’s auditorium.
He also said the National Board of Revenue may set its revenue target from taxes and duties for the next fiscal year at Tk 72,590 crore. The target is 19 per cent more than that of the current fiscal year, which was set at Tk 61,000 crore.
Muhith also said that the target for non-NBR revenue, which is now Tk 2,200 crore, would be set at Tk 3,200 crore. The non-tax revenue target will be set at Tk 17,057 crore.
The ambitious revenue target is mainly aimed at coping with the pressure of a big budget of Tk 1,32,000 crore the next fiscal year.
Primary projections put the next Annual Development Programme at Tk 38,000 crore, 37 per cent higher than the revised one for the current fiscal year.
Sources said that the NBR plans to widen the tax net and engage lawmakers and representatives of local government in the process of realising its target.
NBR officials said more the than 1,000 students would be outsourced in a bid to net new taxpayers.
An NBR survey has spotted 1.78 lakh people who are eligible to become new taxpayers, mostly businesspeople and professionals, in six metropolitan cities.
The survey, launched last December by the NBR, is aimed at raising income tax earnings by widening the tax net. Of the new taxpayers, the number in Dhaka is 1.34 lakh and the rest are from the five other metropolitan cities.
NBR officials believe the newly found taxpayers will contribute a lot to fulfil the ambitious revenue target for the coming fiscal year.

Muhith: RMG exporters to get stimulus in a month

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Muhith: RMG exporters to get stimulus in a month
Star Business Report
Finance Minister AMA Muhith has assured readymade garment exporters of implementation of the government’s Tk 1,000 crore second stimulus package in a month.
“To finalise the package for the RMG sector within the stipulated time, another taskforce, with the central bank officials at the helm, has already been formed,” Muhith told reporters after a meeting with the leaders of BGMEA and BKMEA at his office in Dhaka yesterday.
On a query, the minister pointed to the government’s decision to make some changes in the original documents of the stimulus that was declared last November. “Now we’ll offer stimulus to small and medium enterprises (SMEs), which were not incorporated in the original documents.”
Any garment factory owner exporting clothes worth $250 million would be considered an SME.
There are at least 1,500 SMEs in the apparel sector, according to the industry people.
Under the bailout plan, such SMEs will be entitled to exemption of licence renewal fee for captive power plants, the finance minister said, adding that RMG exporters would also enjoy a cut in taxes on house rent and loan rescheduling facilities.
On the minister’s assurance, Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association, said, “We’ll be very happy, if the package is implemented within the set time.”
Pointing to the energy crunch in the industrial sector, Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association, demanded that the government withdraw the peak hour rate, minimum charges and recently increased gas and power tariffs for the RMG sector.
“We still experience a negative growth in RMG exports, so stimulus is necessary for the revival of the sector,” he said.
The November 25 bailout plan, which aims to cushion global recession fallout, earmarks compensation package for the captive power plants used in industrial units from November 1, 2009 to June 30, 2010.
It also offers bank loan re-scheduling facility without any down payment up to June 30, 2010 from October 2009 at a 10 percent interest rate instead of the current 13 percent for the RMG and textile sectors and 5 percent cash incentives for new export destinations for three years.
The exporters will get 5 percent cash incentives in the first year, 4 percent in the second year and 2 percent in the third and final year.
According to the package document, members of Bangladesh Textile Mills Association (BTMA) will receive this facility only for direct export of yarn.
Forward exchange booking is a must for exporting home textile in other currencies than dollar. This sub-sector will also receive the bank loan re-scheduling facility.

NBR to simplify tax return form

http://www.newagebd.com/2010/apr/19/busi.html#8
NBR to simplify tax return form
United News of Bangladesh . Dhaka
The National Board of Revenue is going to introduce a simplified two-page income tax return form for the convenience of the taxpayers.
‘The NBR will introduce a simple two-page tax return form for the marginal taxpayers,’ NBR chairman Nasiruddin Ahmed said, in a programme arranged to honour new taxpayers of Karwanbazaar in the capital.
Tax Zone-3 of Dhaka arranged the programme in the Institute of Chartered Accountants Bangladesh premises to handover income tax certificates to the new taxpayers.
The NBR chairman said that the government would make the tax returns system easier in the budget for the upcoming fiscal by introducing the simplified form for small taxpayers.
He also assured the small taxpayers that the government will ensure convenient locations for them to pay income tax.
Ahmed also singled out lack of knowledge on payment of income tax as one of the major reasons for the poor tax culture.
In this connection, the NBR chairman said that his organisation would start a training programme for taxpayers, especially businessmen, from July 1 on payment of income tax.
He also assured them of stern action against tax officials who harass the taxpayers.
NBR member (income tax policy) Aminur Rahman informed the businessmen that taxmen will meet them to collect income tax before the deadline for filing tax returns.
NBR member (tax survey and inspection) Shamvu Nath warned that the revenue collecting authority would be empowered to take legal action against the tax evaders who conceal their actual income.
He preferred a motivational campaign to net more new taxpayers, but vowed action for non-cooperation in the survey.
He instructed the surveyors not to harass marginal taxpayers, and to help them fill in return forms.

Govt to amend foreign exchange regulation act to attract FDI

http://www.newagebd.com/2010/apr/29/busi.html#2
Govt to amend foreign exchange regulation act to attract FDI
Asif Showkat
The government has decided to amend the foreign exchange regulation act 1947 for attracting more foreign investments into the country, official sources said.
It will also amend the Bankers’ Book Evidence Act 1891 for making it time-befitting.
To this end, the finance ministry on Tuesday formed a five-member committee headed by the executive director of foreign exchange policy department of Bangladesh Bank.
Other members of the committee are deputy secretary of the law and parliamentary affair ministry (Bank and financial institutions division), general managers of the FEPD and banking regulation and policy department of Bangladesh Bank.
The committee would submit its report to the authorities concerned within two months while the Bangladesh Bank would provide the committee secretarial assistance.
‘The government wants to attract more foreign investments by making the act time-befitting for the foreign investors,’ said a senior official of the finance ministry.
The official pointed out that capital account is still not transferable under the existing foreign exchange regulation act.
The committee would give suggestions after examining the provisions of foreign exchange regulation act 1947 in comparison with that of neighboring countries.
But some Bangladesh Bank sources claimed that Bangladesh’s foreign exchange regulation act is more liberal compared to that of India and Pakistan.
They pointed out that people are transferring up to $ 5,000 from the country for medical and education purposes.
‘The country’s capital account is not still transferable but the current account is liberal,’ one of the officials said.
Executive director of D-Net Ananya Raihan told New Age that the country’s foreign exchange act is of old days compared to that of India.
‘The local investor does not invest in foreign countries as there is a bar under the country’s foreign exchange act,’ he said.
Raihan said that local people are not yet transferring their money through online channels, abiding by the foreign exchange rules.
‘Indian people are already transferring their money through online channels under its foreign exchange act,’ he added.
Former chairman of Regulatory Reforms Commission Akbar Ali Khan said that the government should conduct a thorough research into the probable changes to the foreign exchange regulatory acts.