FBCCI proposes two-tier ceiling VAT imposition on businesses

Financial Express, 27 July 2012

Country’s apex chamber body has proposed to the government to introduce a two-tier ceiling for offering exemption to businesses from payment of Value Added Tax (VAT).

The businesses should be categorized into two groups on the basis of their turnover for imposition of VAT, proposed the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI).

Businesses having annual turnover between Tk 2.5 million and Tk 7.0 million should be placed in the first group who will pay 1.0 per cent VAT. There should be another group with turnover between Tk 7.0 million and Tk 20 million who will pay 2.0 per cent VAT. Businesses with turnover above Tk 20 million will pay VAT at normal 15 per cent rate, it suggested.

The FBCCI placed its set of proposals on draft Vat law-2012 to the parliamentary Standing Committee on Ministry of Finance for the latter’s consideration.

The proposals said the government should reduce the rates for the beginners in businesses, having small capital base.

The FBCCI also proposed to withdraw the system of conducting business transactions though banking channels on a mandatory basis for all transactions above Tk 50,000.

“It is contradictory to our Constitution. To conduct all business transactions through banking channel should not be made mandatory. Businesses of Bangladesh do still follow the traditional system,” it said.

The proposed system will create unusual complexities in business operation, said the FBCCI in its proposals that were forwarded by its president A. K. Azad.

The government should allow the existing accounting system in the VAT law, it added.

The chamber leaders also proposed to incorporate a clear definition of VAT in the new law.

Talking to the FE, FBCCI adviser Manzur Ahmed said there should be a specific definition on VAT which is not in the law.

“If businesses are not clear on definition of VAT, it might confuse them. We have proposed the measures in line with the international practices on VAT all over the world,” he said.

According to the international accounting standards, adopted by the government, any valid transaction should be accepted by VAT authority, whether it is conducted through banking channel or other ones, Mr. Ahmed added.

The FBCCI also proposed to make it a mandatory system to bring the businesses having taxable turnover, under VAT net and audit businesses, under risk- management system.

On punitive measures, the chamber body proposed not to freeze or seize accounts and documents on the basis of allegations.

“The businessmen should be proved as guilty by courts to take such steps,” Mr Ahmed said.

The VAT authority, he said, should obtain signatures of two witnesses to seize any documents or products.

The new VAT law that was recently approved by the cabinet will come into effect from July 1, 2015. It will replace the existing law, framed in 1991, according to the conditions of the International Monetary Fund (IMF) for disbursement of fund in tranches under Extended Credit Facility (ECF).

Bangladesh, India come close to avoid double taxation

The Daily Star, 27 July 2012

Bangladesh and India are close to signing three key agreements, including a protocol to amend the avoidance of double taxation treaty, which is expected to give a major boost to bilateral trade, said officials at the Indian foreign ministry here yesterday.

The two other agreements that are in the final stages are a comprehensive memorandum of understanding on cooperation in the health sector and an MoU on the implementation of small development projects.

The most important of the three agreements is the Double Taxation Avoidance Taxation Convention protocol, which will amend the Double Taxation Avoidance Agreement. The agreement has been in place since 1991.

Considerable progress is believed to have been achieved on the three deals since last Tuesday’s meeting of the Foreign Office Consultations (FOC) here, where Bangladesh Foreign Secretary Mijarul Quayes and his Indian counterpart Ranjan Mathai led their respective delegations.

At the meeting, Mathai conveyed India’s willingness to see early signing of the three agreements.

New Delhi has taken a positive view of the trajectory the India-Bangladesh relations has taken of late, including a flurry of meetings on infrastructure in June to examine infrastructures at land customs stations and the proposed Border Haats.

A review meeting of the line of credit was also held last month in the Indian capital of New Delhi with the objective of fast-tracking implementation of the projects. Shipping secretaries of the two countries agreed to renew the protocol on inland water transit and trade by a further two years.

The two sides are cooperating in facilitating the return of mortal remains of the freedom fighters of 1971. A delegation from Bangladesh was in India recently to discuss modalities with concerned ministries and state governments.

The joint technical committee, set up to explore the possibility of electricity trade between Bangladesh and India and to recommend associate transmission systems on both sides of the border, met recently.

India regards the outcome of these meetings and the sustained engagement between the two sides on substantive and specific issues of mutual concerns as having added a momentum to the bilateral relations.

Emirates adds two Dhaka-Dubai flights

The Daily Star, 27 July 2012

Emirates has recently announced two more fights to Dhaka from September 1, bringing the total number of flights to the capital to 19 a week, the airliner said in a statement yesterday.

The additional flights — EK587 — will be operated on Saturdays and Thursdays.

“We are delighted to announce that we’ll be operating two more flights responding to Bangladesh nationals’ increased demand for travel to Dubai and onward destinations across the world,” said Satish Sethi, Emirates’ area manager in Bangladesh.

“The two new additions effective from September 2012 will expand their choice of timings to fly from Dhaka and avail convenient connections from Dubai.”

Emirates started its services to Bangladesh in 1986. Passengers from Chittagong and Sylhet will receive complimentary air conditioned coach service during travel to and from Dhaka.

Dinajpur Chamber gets new body

The Daily star, 27 July 2012

The new 18-member executive committee of Dinajpur Chamber of Commerce and Industry was elected in Dinajpur on Wednesday.

Two panels led by two former presidents of the body — Rafiqul Islam and Nurul Moin Minu — contested the election. Thirteen members got elected from Islam’s panel where others came from the panel of Minu.

Md Tofazzal Hossain, chairman of the election board and assistant commissioner (land), announced the result of the election yesterday. Elections for the chamber’s president, senior vice president and junior vice president will take place today.

Power Grid Company to set up telecom firm

The Daily Star, 27 July 2012

The Power Grid Company Bangladesh Ltd (PGCB) plans to set up a telecom company to cater for internet service providers across the country, said the managing director of the state-run agency yesterday.

“We have investment and vast network. We will have to develop the management to form the company,” said Md Jamal Ullah.

He said the PGCB has initiated the process to appoint a consultant, which will conduct the feasibility study.

Jamal hopes they would be able to form the company by the next three months.

The PGCB has a vast optical fibre network of 4,300 kilometres across the country. A significant part of the network is still unused.

The company has rented out some capacities of its network to mobile companies such as Robi and Banglalink. The University Grants Commission and Bangladesh Telecommunication Company Ltd also use the network.

The PGCB has already got a licence from Bangladesh Telecommunication Regulatory Commission (BTRC) to lease out its unused network.

“We are now planning to set up a company to work as a service provider. We will be able to earn more money if we form a company. The nationwide communication will also be better,” Jamal told The Daily Star.

Jamal said the PGCB has to renew its licence from the BTRC. “We may not be able to operate under the same licence, and we may need to expand the periphery of the licence.”

The agency is responsible for operation, maintenance and development of the transmission system of the country for distribution of generated electricity.

To appoint the consultant, the PGCB yesterday published a notice seeking expression of interest (EoI) from the consultants who have prior experience in conducting feasibility study on infrastructure development of fibre optic based nationwide telecom network.

Interested consultants were requested to submit the EoIs by August 26.

PDB signs 450mw power deals with Dubai company

The Daily star, 27 July 2012

The Power Development Board (PDB) yesterday signed agreement with Dubai-based Energy Holdings International INC and its subsidiary EHII MENA DMCC to generate 450 megawatt of electricity in two power plants.

PDB Secretary Md Azizul Islam and Energy Holdings International Vice Chairman Jalal Alghani signed the memorandum of understanding at a ceremony at the PDB office in the capital.

One of the plants would be set up in Bibiyana in Sylhet. The other plant would be in Fenchuganj or any other suitable place, according to the PDB.

The two power plants — with capacity of 225MW each — would be set up on build-own-operate basis.

The simple cycle operation of the plant will start commercial production within 20 months of the agreement signing, while the plants will go for combined cycle operation within 28 months of the deal signing, said an official of the PDB.

Tanners move slow on factory relocation They demand compensation of Tk 1,090cr as relocation costs

The Daily Star, 27 July 2012

The relocation of tanneries from Hazaribagh to Savar is being delayed due to the owners’ reluctance to move, mounting the threat of water contamination in the Buriganga river.

Bangladesh Small and Cottage Industries Corporation (BSCIC) has allocated 205 industrial plots to 155 tanneries in the 200-acre leather park at Hemayetpur, Savar.

Not only that, all necessary infrastructures — such as roads, water treatment plants, gas and sewerage line, electricity substation plant — except the central effluent treatment plant (CETP) — have been set up at the leather park.

But the tannery owners are yet to lay down the foundation stone for their factories, blaming the holdup on the failure to reach a consensus with the government regarding compensation and bank loans.

The tannery owners are now demanding compensation of Tk 1,090 crore, a readymade CETP and soft loans.

Leather and leather goods, including footwear, earned more than Tk 6,200 crore from exports in fiscal 2011-12.

The owners’ reasoning being that they would have to build new infrastructures and repair machinery that would be damaged during relocation.

“We’re demanding Tk 1,090 crore in compensation. But we haven’t heard anything from the government yet,” said Shahin Ahmed, immediate past president of Bangladesh Tanners’ Association.

The government proposed sharing costs for the CETP installations, which will require more than Tk 300 crore.

“But we signed a memorandum of understanding in 2003 with the government, and the government agreed to set up the CETP at its own cost,” said Ahmed.

A central effluent treatment system is imperative for the export-oriented leather industry, Industries Minister Dilip Barua said, as most export destinations insist upon its use during the manufacturing process.

Moreover, Bangladeshi leather goods will not have access to developed countries, including those in the European Union, if the government fails to set up the treatment plant by 2014, he said during a visit to the Savar leather estate yesterday.

Barua expects the construction of the CETP to be completed by June next year and urged the tannery owners to start construction of factories on the allotted plots immediately.

“It is not a viable deadline as the construction of a normal ETP takes 2-3 years to finish the work,” M Belal Hossain, chairman of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association, told The Daily Star over phone.

Additionally, they are demanding another 200 acres of land in the proposed leather estate at Savar for building dumping yards and labour barrack for the workers.

The relocation process started nearly ten years ago following a High Court verdict in 2001.

The government, to accommodate the tanneries, began work on the leather estate more than five years ago.

The estate, which cost Tk 545 crore, remains unused and empty.

The tanneries located in Hazaribagh, Dhanmondi, Basila, Kamrangirchar and the surrounding areas continue to inflict its emissions upon the long-suffering residents of the western part of the city.

The stench of the tanneries can be smelt from miles into the residential areas like Rayerbazar and Zigatola.

More importantly, locals claim to frequently require treatment for skin diseases, fever, cough, gastroenteritis, asthma and diabetes

Fish fries of Tk 700,000 to be released in Jamalpur

Daily Sun, 27 July 2012

JAMALPUR: District Fisheries Department has taken a programme to release fish fries worth of Taka 7 lakh in various water bodies of the district.

District Fisheries Office sources said, each upazila has been allotted Tk one lakh to release fish fries. The upazilas are Jamalpur sadar, Sarishabari, Madarganj, Melandah, Bakshigonj, Dewanganj and Islampur.

Under the programme, fish fries of various varieties including Rui, Katla, Mrigel, Kalbaus and Sarputi will be released in the ponds and Beels.

District Fisheries Officer, Ranojit Kumar Paul said, in a view to increase fish production, the government has taken the programme across the country. The fish fries releasing programme will be completed by August 15 this year. —BSS

T-Aman cultivation begins in full swing

Daily sun, 27 July 2012

The cultivation of T-Aman paddy has started in full swing in different districts across the country.

In Narshingdi, farmers have started harvesting T-Aman paddy in all six upazilas of the district. It will get momentum from the second week of August, report agency.

Agency says, due to favourable climatic condition and sufficient rainfall farmers of the district are now working in their field for transplanting T-Aman seedling expecting a bumper production of paddy.

According to Department of Agriculture Extension (DAE), a total of 40,428 hectares of land have been brought under T-Aman paddy cultivation in the district. Of the total land 31,738 hectares of land would be brought under High Yielding variety (HYV) of the paddy and 8,490 hectares under local variety.

In Gaibandha, T-Aman paddy cultivation has started in all the seven upazilas in the current season amid much enthusiasm.

Office sources said Department of Agriculture of Extension (DAE) has set a target to bring a total of 1,18,585 hectares of land under T-Aman paddy cultivation in the district this year with the production target of 3,01,077 tonnes of rice.

Of the total, some 16,550 hectares of land would be cultivated in Sadar Upazila, 14,350 in Sadullapur Upazila, 12,650 in Palashbari Upazila, 29,300 in Gobindaganj Upazila, 23,150 in Sundarganj Upazila, 13,950 in Saghata Upazila and 8,635 in Fulchhari Upazila of the district.

The farmers of the district are preparing their land through raising seedlings and transplanting those in the fields following the suggestions of the field level DAE officials to achieve the target of the production. —bss

Govt allocates 12,901 tonnes of VGF rice for Rangpur

Daily Sun 27 July 2012

RANGPUR: The government has allocated 12,901 tonnes rice under special Vulnerable Group Feeding (VGF) Programme for 12.901 lakh poor families in Rangpur division before upcoming Eid-ul-Fitr, officials said today.

The Ministry of Food and Disaster Management allocated the rice to assist the poor people celebrating the Eid festivity in all 58 upazilas under eight districts of the division.

The concerned district administrations have started allocating the rice in favour of the upazila administrations to prepare list of the beneficiary families for distribution among duly before the holy Eid-ul-Fitr festivity, the officials added.

District Relief and Rehabilitation Officer (DRRO) of Rangpur Mokhlesur Rahman today told BSS that the upazila administrations in association with the union parishad authorities would prepare the list for timely distribution of the special VGF rice.

In addition to this, the government has also allocated more rice under the same programmes for the distressed families living in all A- and B- Category pourasabhas in the division, he added.

Under the programme, the government has allocated 2,171.13 tonnes of rice for distribution among 2,17,113 distressed and poor families with 10 kg each on the Eid-ul-Fitr festivity in all 83 unions under eight upazilas of Rangpur.

Besides, 958.19 tonnes VGF rice will be distributed among 95,819 distressed families in Lalmonirhat, 1,751.11 tonnes among 1,75,111 families in Gaibandha and 2,081.80 tonnes among 2,08,180 families in Kurigram districts.

And another 1,631.01 tonnes VGF rice will be distributed among 1,63,101 families in Nilphamari, 2,388.43 tonnes among 2,38,843 families in Dinajpur, 1,078.28 tonnes among 1,07,828 families in Thakurgaon and 841.06 tonnes among 84,1096 families in Panchagarh. —BSS