Airlines realising extra amount as travel tax from outgoing passengers

The Financial Express, 29 July 2012

Airlines are collecting an additional amount as travel tax from outgoing passengers in the airports giving misleading information and misinterpretation of the fiscal measures incorporated in the Finance Bill-2012.

They already collected a big chunk of money since July 1, 2012 from each of the passengers in airports in the name of travel tax.

Outgoing airline passengers are getting confused in the airports as airline officials are claiming an increased amount of travel tax.

In the 2012-13, the NBR increased travel tax for airline passengers to Tk 3000, Tk 1000 and Tk 2000 from Tk 2500, Tk 800 and Tk 1800 respectively depending on countries.

Airline authorities said passengers who have bought air tickets before July 1, 2012 have to pay an additional amount of tax in the airports, but according to the revenue board those passengers will not have to pay the increased amount of tax.

“Airline passengers who purchased air tickets before July 1, 2012, are not required to pay the additional amount of tax in the airport,” the National Board of Revenue (NBR) Chairman Nasiruddin Ahmed told the FE. The NBR increased all types of travel tax in the current fiscal year for airline routes and the new rates have been imposed on the purchasing of air tickets after July 1, 2012, he said.

Being informed of the collection of an amount as tax from this correspondent, the NBR chairman instantly instructed authorities concerned to hang a notice in the airport to make passengers aware.

“I have given instruction for hanging a notice in the airport asking passengers not to pay any amount to any one as travel tax,” he said.

Kazi Ali Imam, ex-commander of Marine Academy, said: “When I went to see off my wife last week officials of Biman claimed Tk 500 as travel tax. They gave me a receipt after payment of the tax.”

An airline employee said the outgoing passengers have to pay an additional amount of tax as the government increased it from July 1, 2012. I got very annoyed on sudden imposition of such tax, he added.

Usually, passengers do not carry additional local currency to pay the tax.

Specially, many wage-earners have faced problems as they do not carry much local currencies.

A Dubai-going wage-earner said, “I don’t have the money to pay tax. My travel agent dropped me in the airport and another representative of the agency will receive me in Dubai airport”.

“I am feeling helpless and in fear to miss the flight. I don’t have enough time to call the agent to come with money before departure of the flight,” he told the FE.

The managing director of the Biman could not be contacted over phone despite several attempts.

In the current fiscal, the government has amended ‘Foreign travel tax fixation rule 2004’. For North-South America, Europe, Africa, Australia, New Zealand and Fareast travel tax has been increased to Tk 3000 from earlier Tk 2500.

UK co keen to invest $1b to revamp Mongla Port

The Financial Express, 29 July 2012

LONDON, July 28 (BSS): The Port Evaluation Management (Port- Evo), a British company, is keen to provide support to develop new port facilities and proposed redevelopment of Bangladesh’s second largest Mongla seaport under joint venture with Mongla Port Authorities.

As per the proposal, the Port-Evo will invest around one billion US dollars for redevelopment of the port and run it on a long-term basis.

It was informed when British Secretary of State for Foreign and Commonwealth Affairs and Northern Ireland, William Hague, called on Prime Minister Sheikh Hasina at her hotel suite here today.

PM’s Press Secretary Abul Kalam Azad said the Prime Minister assured the British foreign secretary of considering favourably the British investment proposal.

The Port-Evo also wants to invest for river dredging, procurement of new harbour cranes, container terminals, oil tank storage and water treatment plant.

Azad said the Port-Evo proposed for establishing an oil- and gas-fired power station costing US$ 450 million and a special economic zone.

In the meeting, the Prime Minister said the UK is a time- tested friend and development partner of Bangladesh, which is also the third largest destination of Bangladesh’s exports.

British Foreign Direct Investment (FDI) to Bangladesh is about 22 percent of the country’s total FDI, she said, adding the UK may consider business-business matchmaking in identified industries, especially in the service sector.

She invited British entrepreneurs to invest in pharmaceuticals, power generation, renewable energy and higher education sectors.

Sheikh Hasina informed the British foreign secretary of Bangladesh’s achievements in different sectors during her government’s tenure, particularly in the areas of agriculture, poverty alleviation, health and education and information technology.

She also apprised William Hague of her government’s steps undertaken for strengthening parliamentary democracy, saying opposition members despite their constant boycott of the sessions of parliament, are taking part in the functions of parliamentary standing committees.

She said her government, after taking office, strongly handled the terrorists and

militants to erase the bad name of Bangladesh as a land of terrorists.

Hasina expressed her government’s firm commitment to protect human rights, democracy, strengthen Election Commission and establish good governance and rule of law, and sought stronger cooperation of Britain in counterterrorism.

Foreign Minister Dr Dipu Moni, Ambassador-At-Large M Ziauddin and Bangladesh High Commissioner in London Dr M Sayeedur Rahman Khan were present.

Summer tomato cultivation begins in Godagari

Daily Sun, 29 July 2012

RAJSHAHI: Summer hybrid tomato is being cultivated in different areas of Godagari upazila of the district commercially as it is being considered as a profitable crop.

In last year, seven farmers have gained success through farming experimentally. So, its acreage has been enhanced this year.

Farmers of Dewpara and Char Asariadaha unions have completed seed sowing activities of summer hybrid tomato (variety BARI-4) on five bighas of land. As the seedlings are growing well the farmers have arranged sheds with bamboo and polythene.

However, the farmers said the seed transplantation process on the land is being delayed a little bit as the ongoing rainfall has affected some of the seedbeds.

Ataur Rahman, a farmer of Iswaripur village, said he had cultivated the summer tomato on 10 katha of land costing Taka 10,000 in last year. He earned a profit of Taka 1.5 lakh after selling the harvested crop. In the current year, he planted seedlings on 15 katha of land.

Another farmer Lal Mohammad of Choitanyapur village said that he received training on farming and harvesting process of the tomato from Upazila Agriculture Office and cultivated the crop on five katha of land experimentally last year. After achieving success in farming, he brought one bigha of land under tomato farming commercially this year.

Two farmers of Boyermari village cultivated the crop on 10 katha of land under River and Life Project this year. —BSS

Bangladesh plastic industry to reach $4 billion by 2020

Daily Sun, 29 July 2012

Bangladesh could emerge as a global player in plastic industry by hiking its turnover to $2 billion by 2015 and $4 billion by 2020 cited a case study on Bangladesh`s plastic sector conducted by the Economic and Social Commission for Asia and the Pacific (ESCAP) of the United Nations.

The report says the South East Asian country has to address three issues on priority basis mainly infrastructural support, waste management &recycling facility, and skills development.

The report launched recently in the Capital Dhaka, suggested the Bangladesh government to set up a separate economic zone for the plastic industry offering facilities like uninterrupted power to the factories.

Plastic-based products currently represent a sizeable sub-sector in the chemical industry in Bangladesh. The report said the current market size of plastic products is around $1 billion with majority $714 million in the domestic market and the rest in the global market.

The plastic sector has around 3,000 manufacturing units that offer jobs to more than 2 million people directly and indirectly. The report highlights that Bangladesh is one of the lowest plastics consuming countries.

“Per capita consumption of plastics and plastics-based products in Bangladesh is estimated at two kg annually against the global average at 80 kg,” cites the report.

This indicates that such consumption in Bangladesh is expected to rise as the economy develops.

Interestingly, plastic recycling has also developed into a sizeable component of the plastic industry with major recycling centers operating in and around Dhaka, according to the UN report.

Availability of river water and low transportation costs have made the recycling units in and around Dhaka economically attractive. About 300 small units are recycling around 138 metric tons of plastic wastes a day.

The plastic industry logs more than 10 percent of their earnings from the garment sector. Bangladesh is one of the biggest garment exporters to the world.

The UN report said plastic products are used in different purposes such as packaging, construction, pharmaceutical and consumer products. Garbage bags, toothbrushes, artificial flowers, ballpoint pens, PVC (polyvinyl chloride) pipes, polythene sheets, electric switches and computer accessories also use plastic products.

Although the plastic industry in Bangladesh has made remarkable progress over the years, it still lacks a well-designed approach for achieving long-term and sustainable growth, said the report. It also suggested the government ensure policy consistency and policy direction. —Banglanews24

Jamdani Fair Begins in CityPermanent sales centre for Jamdani saris soon: Dilip

Daily Sun, 29 July 2012

Industries Minister Dilip Barua said the demand for jamdani saris is increasing day by day for their attractive design and quality, especially among the rural poor.

“We should take some special measures for the industry as it has huge potential to grow further,” Barua said.

Dilip said the government has a plan to open a permanent sales centre for jamdani saris in cooperation with the BSCIC at Noapara at Rupganj in Narayanganj.

The Minister said this while inaugurating a month-long International Jamdani Taant Bastra Fair on the premises of Siddeshwari Girls School at Baily Road in Dhaka Saturday.

The Minister spoke at the fair as the chief guest while Rabindra Gope, Director of Bangladesh Folk Art and Crafts Foundation (BFACF) attended the function as special guest.

Bangladesh Weavers’ Product and Manufacturing Business Association (BWPMBA) organised the fair.

SM Khalilur Rahman, BWPMBA President, Pobirta Paul, Senior Vice-President and M Salauddin Osman Gani and Arif Bhuiyan, executive committee members, were present.

The main objective of the fair is to regain Jamdani’s lost glory by promoting the traditional product at home and abroad, organisers said.

They also urged the government to provide working capital for the weavers, set up a permanent display centre and establish ‘Taanti Palli’ in Dhaka and arrange training on modern fashion and design to accelerate the growth of the sector.

A vast array of Jamdani products is being displayed in 81 stalls of the fair, which would remain open to all from 9 am to 10 pm everyday.

A huge quantity of traditional clothes including Jamdani and Taant saris are being exported to many countries in Europe and Asia including India, Nepal, Sri Lanka and the UAE, organises said.

Walton launches silver nano refrigerators

Daily Sun, 29 July 2012

Walton, one of the country’s largest home appliances manufacturers, has launched world-class refrigerators incorporating silver nano-particles in them to keep food fresh and germfree for longer.

“The vegetable boxes of Walton refrigerators of all models are coated with microscopic silver nano ions (Ag+), which helps keep food free from harmful bacteria and unpleasant odours,” Engr Ashraful Ambia, Additional Director, Department of Production of Walton, said.

Besides, Walton is using nano deodoriser in its Platinum series of refrigerators to maintain freshness of food for a long period of time, he said.

Silver nano-particles are silver particles of sizes between 1 nanometre and 100 nanometre. [1 nanometre (nm) is one-billionth of a metre.]

According to experts, silver nano technology can kill some 650 kinds of harmful bacteria, mold and germs. It helps prevent bacteria and fungi from growing inside refrigerators. Besides, it prevents the intrusion of bacteria from the external environment.

Engr Ambia said Walton always gives highest priorities to consumers’ health and environment. Since the nanotechnology is regarded as a health-and environment-friendly technology worldwide, Walton has decided to use the sophisticated silver nanoparticles in its refrigerators for its anti-bacterial and odour-eliminating properties.

He said, Walton Hi-Tech Industries Ltd is the first company in Bangladesh which has been using nano technology in its refrigerators by coating the vegetable compartments and their plastic covers with silver nano ions since mid of 2011. The silver nano ions within the coating kill and resist bacteria and fungus, he added.

Walton imports nano particles from South Korea for using in its refrigerators, sources said. Some 10 per cent of nano particles are mixed with the main ingredient for manufacturing plastic compartments to preserve vegetables inside refrigerators. As a result, Walton refrigerators are now more modern and effective, he claimed.

“We expect a strong rise in demand from local consumers for Walton’s silver nano-tech refrigerators in the days ahead as consumers are gradually becoming conscious about health and hygiene issues,” Engr Ambia said.

Walton is now trying to incorporate nano technology in its air-conditioners. As a result, Walton AC’s air would be more refreshing and germ-free.

With launch of unprecedented silver nano technology-embedded refrigerators, Engr Ambia said, Walton further aims to consolidate its leadership position in the home appliances industry in Bangladesh.

Uday Hakim, Senior Deputy Director and Head of Creative and Publication-Walton, said Walton is the only industry in Bangladesh which is using nano technology for manufacturing refrigerators.

Though the production cost has gone up for using nano technology, Walton has not increased prices of its refrigerators. Walton receives a distinctive status by using nano technology.

Experts working at Walton said that nano technology can also be used in motorcycles as harmful germs develop on motorbike handles due to frequent uses. Nano technology can be used in handles to free them from germs, he said.

Moeenul Haque, Executive Director of Department of Research and Development of Walton, said Walton is now carrying out extensive researches for using nano technology in all of its products.

Walton would be able to ensure quality of its products using the nano technology, he added.

Tapan Kumar Nath, Deputy Secretary (Research & Development) of the Ministry of Industries, thanked Walton for successful application of nano technology to its refrigerators.

He said the Ministry of Industries is now carrying out research on nano technology. “Application of nano technology can bring revolutionary changes to the industrial sector in Bangladesh,” he observed.

Russian software export to grow

Daily Sun, 29 July 2012

MOSCOW: Software exports from Russia may reach $5 billion in 2012, but experts say state support is needed to grow the sector further.

Valentin Makarov, head of software industry trade group RUSSOFT, declared at the St. Petersburg International Economic Forum in June that Russian software exports may reach $5 billion in 2012 – up from $4 billion in 2011 and $3.1 billion in 2010.

A RUSSOFT report, published early in 2010, said that in 2009, exports of IT services accounted for $1.4 billion of the $2.75-billion total for exports. The share of readymade solutions exports stood at $1.03 billion. The turnover of Russia-based international software design centers amounted to $320 million.

Some industry experts do not agree that all these categories should be lumped together and labeled “Russian software exports.” For example, they argue that IT services exports cannot be counted as software exports since these services include contracting out software design as well as all kinds of IT outsourcing, testing, software customer support, training and others. —Itar-Tass

European debt crisis affecting Ukrainian economy

Daily Sun, 29 July 2012

KIEV: The Eurozone debt crisis that began in Greece in May 2010 has had a spillover effect on countries outside the monetary union, including Ukraine.

The Ukrainian economy can not avoid reeling if the eurozone debt crisis continues swelling, as it has been closely linked with the European and global markets.

The worsening crisis in the European Union (EU), which absorbs 26 percent of Ukraine’s exports, would surely affect the import of Ukrainian goods, a heavy blow especially to companies supplying the lion’s share of products in mining, metallurgy and other heavy industries.

Foreign Direct Investment (FDI) from the EU, which used to account for 70 percent of all inflows to Ukraine, may also fall if the crisis spreads, as anxious investors try to save their liquidity to counter the next crisis wave, if there is any.

Besides, the majority of over a million Ukrainian migrants now work in Spain, Portugal, Ireland and Italy, the latest four victims of the ongoing crisis following Greece, which is edging towards the exit of the euro zone.

If things get worse, these migrant workers might lose their work, which will be a severe blow not only to their families in Ukraine, but also to the national economy of the Central European country. —Xinhua

Trade fair to further expand China-Vietnam business links

Daily Sun, 29 July 2012

HANOI: The 2012 China’s Guangxi-Vietnam Trade Fair that kicked off here on Thursday last week has ushered a more vibrant trade relations between Vietnam and China’s Guangxi Zhuang Autonomous Region.

With 140 pavilions covering an area of 4,500 square meters, the four-day fair showcased over 1,000 different products, including electrical machinery, sugar production technology, construction materials, food, medicines and other high-tech products.

On display at the trade fair’s outdoor pavilion were China-made heavy equipment such as trucks, excavators and cars.

“In recent years, the sector of new energy vehicles in China has developed strongly,” Yang Bin, general manager of the China Sumpo Electricmotor Fabricate company, said.

Interviewed by Xinhua, Yang said that apart from being environment-friendly, using electric vehicle is also very economical. “The cost of using electric vehicle is only one-tenth of the cost of maintaining a motorcycle,” Yang said.

Vietnam is known as the world’s motorcycle capital with some 5 million motorcycles plying the roads of Hanoi alone.

“We hope that we can soon work with the Vietnamese government to bring our products to Vietnam. We plan to set up an assembly plant here not only to save on costs and also to promote local employment,” Yang said.

Ma Jixian, deputy director-general of the Department of Commerce of Guangxi Zhuang Autonomous Region, said that the holding of the trade fair is an important step in promoting economic cooperation between Guangxi and Vietnam.

“Since 2006, Guangxi has held six Guangxi-Vietnam trades fair which have received very good response from local enterprises,” Ma said.

“Thanks to the holding of these trade fair, the trade volume between Guangxi and Vietnam has kept increasing around 40 percent annually in the past few years and the value of contracts signed during trade fairs has also increased about 50 percent year-on-year,” Ma added.

According to the Guangxi Department of Commerce, the commercial ties between Guangxi and Vietnam have been strengthened in recent years, with bilateral trade increasing by 47.7 percent over the 2010 figure to nearly 7.6 billion U.S. dollars in 2011.

Government statistics showed that trade turnover between Vietnam and Guangxi topped among ASEAN countries, accounting for 79.3 percent of the total trade between Guangxi and ASEAN. —Xinhua

Move underway to dredge 310 rivers in phases

Daily Sun 29 July 2012

The government plans to increase its annual dredging capacity to 30 million square metres from the existing five million square metres to dredge all 310 rivers of the country in phases to control floods, ensure proper irrigation and bring back their navigability, according to Water Resources Ministry sources.

In this connection, Water Resource Ministry will procure 11 succession cuter dredgers, under the ‘Bangladesh River Dredging and Dredging Spear Machineries Purchase Project (BRD and DSMPP)’, which will initially increase country’s dredging capacity to 21.6 million square metres a year.

“Under the project, dredging work in 18 major rivers of the country including Ganga, Meghna, Brahmaputra and Padma will begin very soon,” Sheikh Altaf Ali, senior secretary to Water Resources Ministry, said, quoting a Water Division proposal for procurement, manufacturing and supplying of tug for river dredging.

He also added that once the dredging work for the rivers was completed, a number of small rivers would also be benefited.

The proposal also reads that the government has taken up four short-term projects along with the mega project to carry out dredging in different rivers and to control floods.

Meanwhile, Water Resource Minister Ramesh Chandra Sen told daily sun on Saturday that the government would resume capital dredging this year. “Capital dredging will help maintain major rivers’ navigability, and there is no alternative to maintaining the rivers,” he added

The Water Resource Ministry proposal for procurement of three tugs and spare parts to increase dredging capacity of the government will be placed to the next cabinet committee meeting for its approval.

The total project costs will be financed by the government from the Tk 13.10 billion fund earmarked for the job in 2011-12 fiscal year.

Ananda Shipyard and Slipways Ltd will be given the work for procuring, manufacturing and supply of three Tug -1000 HPs, as it was the lowest bidder in the procurement tender.

Total tender price of the local company was 11.78 percent lower to Tk 553.0 million, against the government estimated work cost of Tk 627 million, according to the proposal.

Four companies were non-responsive in the bidding.