Earnings from specific sources: Tax exemption only if income is 15pc higher

No taxpayer will be able to get exemption from any audit by showing only a gross increase in the annual income compared to that of the previous year, according to a new guideline. Taxpayers now will have to show an increase by 15 per cent in income from the particular sources that they showed in the previous fiscal’s tax returns to get exemption from any audit. Earlier, the tax authority allowed exemption from audit in the event of a gross increase in the income. The National Board of Revenue (NBR) included new provisions to this end in the recently-issued ‘Audit Selection Guideline’ for audit of tax returns for fiscal year (FY) 2017-18. Field-level tax officials will have to follow the guideline in selecting tax files of both corporate and individual taxpayers for auditing. Under the Income Tax Ordinance-1984, tax returns are exempted from any audit on certain conditions. They include the 15 per cent higher income from the specific sources shown in the previous fiscal’s tax returns.

Source: https://thefinancialexpress.com.bd/economy/bangladesh/tax-exemption-only-if-income-is-15pc-higher-1531107778

Salaried persons with doubtful bank balance to face NBR audit

Salaried persons will face audit if income tax officials find inconsistency between the income shown by taxpayers and the fund credited to their bank accounts. The National Board of Revenue, in its recent guidelines on income tax returns selection for audit, asked its field-level income tax officials to scrutinize bank statements of salaried persons submitted with the tax returns to see whether there is any inconsistency between the income showed in returns and the fund credited to their bank accounts. Tax returns can be picked for audit in case of variation in information, said the guidelines for returns for the fiscal year of 2017-2018. Audit, intelligence and investigation wing of the NBR also said that businesses and professionals would also face audit if tax officials found differences between the fund credit to their bank accounts and the sales or income.

Source: http://www.newagebd.net/article/45533/salaried-persons-with-doubtful-bank-balance-to-face-nbr-audit

Trade war fallout risks lurk over Bangladesh economy

The ongoing trade war between US and China, the two largest economies of the world, will affect Bangladesh’s global trade in the long run along with some immediate negative impacts on its economy, economists say. They observe that the benefits, if any, for Bangladesh’s economy, particularly export, would be temporary. The impact will become unbearable if the trade war that formally began on Friday lingers and spreads among other countries, they warn. A possible prolonged trade war may also lead to slowdown in global economy, ultimately affecting Bangladesh’s export, which is concentrated on single sector —readymade garment items. The United States and China on Friday slapped tit-for-tat duties at the rate of 25 per cent respectively on $34 billion worth of the other’s imports as part of ongoing trade war. US president Donald Trump also warned that he might ultimately target over $500 billion worth of Chinese goods, including apparel products, based on China’s reaction on US decision on duty imposition.
Apart from China, Trump has also locked into trade battles with US allies Canada, Mexico, EU and Japan and as well as with Russia and India. In an analysis, international news agency Reuters found that the trade war might largely affect the countries having larger global exposure in value chains. In short term, Bangladeshi importers, particularly RMG exporters, might have to procure cotton, the main raw material for apparel products, at higher price as cotton in Indian market was already costlier due to the trade war. Instability and uncertainty in global trade regime would not be good in any way for Bangladesh economy. Bangladesh might lose its export in US market if the trade war changed the spending habit of US consumers due to increased price of products. It might also affect Bangladesh’s remittance earnings if the trade war would prolong and caused global economic slowdown.

Source: http://www.newagebd.net/article/45450/trade-war-fallout-risks-lurk-over-bangladesh-economy

BD produces record 11,059MW electricity

The country produced a record of 11,059 megawatts (MWs) electricity at 8:00pm on Saturday night. The power sector has crossed the earlier record of 10,958MWs electricity generated on May 28 this year. On March 19, Bangladesh exceeded the milestone of 10,000MWs power production, it added. A total of 10,137MWs were produced on April 24, 10,147MWs on May 22, 10,699MWs on May 26 and 10,825MWs on May 27.

Source: https://thefinancialexpress.com.bd/national/bd-produces-record-11059mw-electricity-1531062723

Rooppur NPP: Construction work of second unit starts on July 14

The construction work of the second unit of the Rooppur Nuclear Power Plant (RNPP) is scheduled to start on July 14. The Bangladesh Atomic Energy Regulatory Authority (BAERA), the regulator of the country’s nuclear power activities, will formally hand over the design and construction licence of the second unit to the Bangladesh Atomic Energy Commission (BAEC) at a function to be held at a city hotel today (Sunday). The BAERA also provided site licence for construction of the RNPP to the BAEC on June 21, 2016. The contractor is bound to complete the construction of the respective unit of the RNPP within 66 months of inking the deal. As per the contracts, the first 1200MW unit of the RNPP would be completed by June 2023 and the second unit by April, 2024. The RNPP plants will use two generation 3+ VVER-1200 reactors. The RNPP is being built under an agreement with Russia which will finance most part of the total cost of the plant. Russian contractors are already working at the project site. The BAEC has assigned India’s Global Centre for Nuclear Energy Partnership (GCNEP) to work as a consultant for the construction and operation of the plant. The Rooppur project has been taken up involving a total cost of around Tk 1.13 trillion ($12.65 billion) with Russian financing worth $11.38 billion being provided to Bangladesh for the project.

Source: https://thefinancialexpress.com.bd/economy/bangladesh/rooppur-npp-construction-work-of-second-unit-starts-on-july-14-1531024685

RMG workers’ rep to propose Tk 16,000 as minimum wage

The Workers’ representative to the readymade garment sector wage board is likely to submit a proposal today at the second meeting of the board recommending Tk 16,000 as minimum wage for the workers and to lower the job grades of workers to five from existing seven. As per the decision of the first meeting of the wage board the representatives of both factory owners and workers are supposed to submit separate proposals of minimum wages to the board in the second meeting but the factory owners may submit their proposals after getting the proposals of workers representative. Meanwhile, Clean Clothes Campaign, a global alliance of workers’ rights groups in the garment industry, on Friday expressed its solidarity with the demands of workers in Bangladesh and urged the Minimum Wage Board to increase the minimum wage to Tk 16,000 without delay. The present minimum monthly wage for the garment worker is Tk 5,300, which was set in 2013. The first minimum wage board for garment workers was constituted in 1994 that fixed Tk 940 as minimum wage per month and the second one formed in 2006 fixed the minimum wage at Tk 1,662.50 while third board was formed in 2010 fixed minimum wage at Tk 3,000.

Source: http://www.newagebd.net/article/45451/rmg-workers-rep-to-propose-tk-16000-as-minimum-wage

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