BD Embassy making lists of workers

Bangladesh Embassy in Riyadh is preparing three lists of Bangladeshi workers of Saudi Oger Ltd, who have been facing problems with their salaries for couple of months. Other countries have also taken similar steps for their nationals working in the maintenance and construction company. Unofficial data showed 1,600 Bangladeshi workers were working in Oger, which has not been paying salary to them for about eight months. A latest update, posted on the embassy website, said several meetings have been held between Bangladesh Embassy authority and Saudi Labour Ministry of Eastern region. All kinds of activities, agreements and banking transactions of Oger have been halted or cancelled, and its property may be attached very soon.

Source: http://www.thefinancialexpress-bd.com/2016/08/11/41638

Tax receipts from DSE down 16.0% in July

The government’s revenue earnings from the premier bourse fell 16.0% year-on-year in July, the first month of current fiscal year, compared to the same month in the previous fiscal, as trading volume was on the decline. Market insiders said on the back of falling turnover value, the government earnings from the premier bourse dropped accordingly, as earning is related to turnover. The government bagged tax worth nearly BDT 85.0 million in July, 2016, against BDT 101.0 million in July, 2015, registering a decline of 16.0%, according to statistics from the DSE. Of the total revenue earning in July in the current fiscal year, BDT 63.7 million came from the TREC (trading right entitlement certificate) holders’ commission, popularly known as brokerage commission and only BDT 21.0 million came from the share sales by sponsor-directors and placement holders, the DSE data showed. The month-on-month earnings from the DSE also saw a sharp decline. The government earned BDT 85.0 million in July, 2016, which was BDT 161.5 million a month ago, falling 48.0%, the DSE statistics showed.

Source: http://print.thefinancialexpress-bd.com/2016/08/11/148794

SRO imposes 0.7% tax on export bills

The government issued Wednesday a statutory regulatory order (SRO) levying 0.70% tax at source for all the export-oriented sectors, save jute and jute goods. Although the government increased the tax-at-source rate by 0.1% to 0.7% from 0.6% in the budget for the current financial year (FY), 2016-2017, it was not implemented in absence of the legal instrument. As per income tax law, the exporters had to pay 1.0% tax at source on their export bills until Wednesday’s issuance of SRO by the Internal Resources Division (IRD), tax officials said. Commercial banks deduct the tax at source from the export receipts. The SRO, dated August 10, 2016, has been issued with retrospective effect from July 1, 2016. It would be valid until June 30, 2017. Meanwhile, in a separate SRO, the IRD reduced income tax rate for both corporate income taxpayers and individual taxpayers, earning from jute goods-producing industries, to 10.0% from 15.0%. The cut-down tax rate would be valid for four tax years, starting from 2016-17 up to 2019-20. However, the tax measure has also been passed in the budget for the current FY but not included in the Finance Bill 2016.

Source: http://print.thefinancialexpress-bd.com/2016/08/11/148849

Oil import costs to soar under government-to-government deals

Bangladesh Petroleum Corporation’s cost on premium will escalate by at least 52% to 71% for importing petroleum products under government-to-government deals instead of open bidding. The premium, which is the cost of shipping petroleum products and includes freight charges and insurance, was fixed at USD 4.4 per barrel for gas oil and USD 5.4 for jet fuel imports during the January-June period under government-to-government agreements. Under the open tender that took place in April for the first time since 2005, the premium stood at USD 2.4 – USD 2.6 for gas oil and USD 3.1 – USD 3.5 for jet fuel per barrel. The cabinet committee on purchase on Wednesday gave the go-ahead to BPC to import 1.5 million tons of gas oil and jet fuel under the government-to-government arrangement from nine countries. The development comes after the purchase committee in December last year decided that BPC will import 50% of petroleum products a year through government-to-government deals and the other 50% through open tender. Since the going market rate is used as the price of petroleum, the suppliers in an open tender differentiate themselves with their premium rates. A BPC official told The Daily Star yesterday that they have been pursuing to fix the premium rate for government to government arrangement on the basis of the rate quoted by bidders in open tender for imports for the July-December period.

Source: http://www.thedailystar.net/business/oil-import-costs-soar-under-govt-govt-deals-1267801

BERC eyes use of energy security fund for LNG, LPG import cost

Bangladesh Energy Regulatory Commission has drafted the guidelines on the use of energy security fund created last year from the sales of gas, giving priority to meeting import cost of liquefied natural gas and liquefied petroleum gas. The BERC said it created the fund during the last gas price hike, aiming at taking short-, medium- and long-term measures under the fund to ensure the country’s energy security. In September last year, the BERC increased price of natural gas by 26.3% on an average considering BDT 1.01 as asset value of each cubic metre of natural gas. The draft guidelines stipulate that the government could use the fund for the import of LNG and LPG as well as for the construction of infrastructure to facilitate the imports. On Wednesday, the BERC held an open meeting on the draft guidelines. The energy commission chairman, AR Khan, presided over the meeting. Khan said that the guidelines should accommodate the other projects in the energy sector as well as in the power sector to ensure country’s overall energy security. But imports of LNG and LPG will get priority, he said.

Source: http://newagebd.net/245532/berc-eyes-use-energy-security-fund-lng-lpg-import-cost/

Sugar consumption on the rise

Sugar consumption continues to rise in Bangladesh, driven by increased intake of beverages, biscuits, sweets and confectionary items, said industry operators. Consumption of the sweetener stood at 2.4 million tons in fiscal 2015-16, up 15% year-on-year and the highest in five years, according to a report of the US Department of Agriculture. The reason for the increased consumption is the burgeoning middle-class, said Golam Mostafa, chairman of Deshbandhu Group that operates a sugar refinery. Every year, 2.0 million Bangladeshis are joining the ranks of middle- and affluent-class, according to a report released by Boston Consulting Group last year. Households with annual income of USD 5,000 or more are considered to be middle-class. Bangladesh has about 12 million of middle- and affluent-class people, accounting for 7% of the total population, according to the report. Operators said consumption of sugar has been rising every year for its increased use as a key ingredient for beverages, bread and biscuits, confectionary, sweets, cakes and pastries — whose demand is growing too for the steady economic growth.

Source: http://www.thedailystar.net/business/sugar-consumption-the-rise-1267792

BTRC reschedules MNP auction procedures

Bangladesh Telecommunication Regulatory Commission (BTRC) yesterday announced a new schedule for Mobile Number Portability (MNP) auction procedures, keeping the auction date unchanged on September 21. According to the new schedule, submission date for the bid application has now been fixed on August 22, the name of the qualified bidders to be disclosed on September 5, date for submission of bid earnest money is now on September 6, letter of acceptance or rejection is on September 8 while consultation of auction procedure will be held on September 19. MNP allows the subscribers to switch their services among operators without changing their phone numbers. An official of BTRC told the Dhaka Tribune that Mobile Number Portability (MNP) auction procedures have been rescheduled just to attract more applicants in participating the auction. Earlier on June 14, BTRC had set June 16 for the invitation of application while last date of submission of any query was on June 30. Base price of the auction will be fixed at BDT 10.0 million while bank guarantee would be BDT10.0 million. The annual license renewal fee will be BDT2.0 million while the company will have to share 5.5% revenue with the BTRC. The commission has fixed BDT 0.1 million as the application fee and bid earnest money would be BDT10 lakh. After the bidding process, a license will be given to an independent company for 15 years to run the MNP system.

Source: http://www.dhakatribune.com/business/2016/08/11/btrc-reschedules-mnp-auction-procedures/

New watchdog to nose out MNCs’ profit shifting

Government’s revenue authority is raising a new watchdog team styled ‘resource pool’ to nose out profit shifting by multinational companies from Bangladesh illegally. Officials said the National Board of Revenue (NBR) is forming the strong surveillance team with best of the bunch of taxmen under the transfer-pricing law to check the flight of funds. Field-level tax officials will be drawn into the resource pool. They will work for detection of cross-border financial transactions, Base Erosion and Profit Shifting (BEPS) by the MNCs in their respective tax zones. The NBR will develop skill and arrange capacity-building training at home and abroad for the officials in the resources pool. To form the resource pool, the Transfer Pricing Cell (TPC) of the NBR recently sent letters to all of the tax offices across the country to nominate taxmen — ranking from deputy commissioner to tax commissioner — for the pool of combatants against the alleged financial offence. A senior official of the TPC said enforcement of the transfer- pricing law will need a group of expert tax officials in the NBR and field-level tax offices as well. Currently, there is a seven-member team at the Transfer Pricing Cell to work on implementation of the law.

Source: http://print.thefinancialexpress-bd.com/2016/08/11/148838

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