Govt aims for major reforms to boost tax receipts
The government plans to merge development and revenue budgets, amend income tax laws and establish a procurement authority in the next three years as part of a set of reforms aimed at boosting revenue collection and ensuring transparency in expenditure. Revenue generation in Bangladesh is one of the lowest in the world because of tax avoidance, a long list of exemptions, lower taxpayer base, and weak enforcement, while public expenditures face leakages and are not efficient. By July 1 next year, the National Board of the Revenue will implement online payment for income tax exceeding Tk 20 lakh and roll out a piloting of online return filing for the taxpayers with incomes exceeding Tk 70 lakh, according to the document related to the plans.Other steps include online payment of VAT amount surpassing Tk 1 crore with effect from January 1 next year, introducing an electronic contract management system of e-GP (electronic government procurement), and initiating and scaling up citizen monitoring of contract implementation by June 30, 2022.And by December 31 next year, it will integrate e-GP with iBAS++, an integrated budget management system.The Manila-based lender has already approved $250 million and the Asian Infrastructure Investment Bank sanctioned $250 million as budget support for the current fiscal year. The Export-Import Bank of Korea will lend $100 million and the OPEC Fund for International Development will provide $100 million.The tax-to-GDP ratio will also be increased to 8.8 per cent, up from 8.1 per cent. The capital expenditure to GDP ratio will be raised to 6.3 per cent, up from 5.6 per cent in FY20.The fiscal deficit is estimated at $23.9 billion for FY2022 and $26.5 billion for FY2023. The projected external borrowing is $8.8 billion in FY2022 and $11.7 billion in FY2023. At least 20,000 electronic fiscal devices will be installed and commissioned for automated VAT invoice generation by 2024.
Prime Bank subscribes Tk 2.0b in preference shares of UMPL
Prime Bank subscribed Tk 2.0 billion in the preference shares issued by United Mymensingh Power Limited (UMPL), one of the concerns of United Group. As part of the group’s initiative to explore alternative instruments to support its financing requirement, Prime Bank arranged and subscribed the preference shares.
ICAB launches ‘Bangladesh Economia’
The Institute of Chartered Accountants of Bangladesh (ICAB) published a peer-reviewed journal titled ‘Bangladesh Economia’, a half-yearly journal based on research. The launching of ‘Bangladesh Economia’ was held on Saturday at Council Hall, CA Bhaban, Dhaka. Mohibul Hassan Chowdhoury, M.P, Deputy Minister, Ministry of Education, GoB, attended the ceremony as the Chief Guest and unveiled the 1st issue of the half-yearly journal of ICAB. Dr. Atiur Rahman, Former Governor, Bangladesh Bank and Dr. Khondaker Golam Moazzem, Research Director, Centre for Policy Dialogue (CPD) were also present as special Guests.
RMG production cost up 5pc on diesel price hike
The latest diesel-price hike would raise the readymade garment items’ production cost by 5.0 per cent, thereby posing a headwind against the turnaround Bangladesh’s main export industry is making with western markets rebounding. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made the observations Saturday and urged the government to reconsider the raise in the fuel price that casts multiple impacts on the industry and transportation.Though apparel-export-earning growth during recent months is good, he said, the industry has been passing through a challenging time. The RMG factories have yet to overcome the losses incurred during the invasive pandemic, he cited as an example of the downside. To add up to the cost of production and shipment processing, yarn price has gone up by 60 per cent in a year while container charges jumped 350 to 500 per cent, coupled with a 40-per cent rise in dyes and chemicals, 13-per cent electricity cost, and 7.5-per cent wage hike.