Use of mobile phones to cost more

16:05 June 2, 2016

Mobile phone use is set to become more expensive as the government proposed
to hike the supplementary duty on the services that subscribers use via
Subscriber Identity Module (SIM) and Removable User Identity Module (RUIM)
cards.
While placing the budget for fiscal year 2016-17 in parliament, Finance Minister
AMA Muhith proposed to hike the supplementary duty to 5% from the existing
3%.
He said the decision was made as the SIM tax was significantly reduced in last
fiscal years budget.
With the duty hike, using mobile phones will become more expensive, as the
duty will be imposed on all services including voice calls, short messaging
services and multimedia messaging services, internet and other services.
Currently, users share 15% VAT on the use of mobile phone services, including
voice, data, or other value-added services as well as a 3% supplementary duty.

15% duty hike on rice import

16:44 June 2, 2016

Finance minister AMA Muhith on Thursday proposed to hike the customs duty on
rice import to 25% from the existing 10% as Bangladesh now have surplus in
cereal production. Currently, there is a 10% customs duty and 10% regulatory
on the import of husked (brown) rice, fortified rice kernels, broken rice, and on
semi-milled or wholly-milled rice, whether or not polished or glazed during the
import stage. The duty hike is expected to ensure that farmers in Bangladesh
get a fair price for the rice they produce. Earlier in April this year, the minister
turned down a proposal from local rice millers and businesses to further
increase the duty on rice import. However, he later changed his mind to prevent
the import of rice with a view to protecting the local millers and farmers. *
According to the ministry data, the private sector has imported 247,000 tonnes
of rice from July to May 30 of the ongoing fiscal year. The figure was 1.49 million
tonnes in fiscal year 2014-15, the highest quantity since the financial year 201011.

A budget for middle-income aspirations

published: 01:05 june 2, 2016

Today, Finance Minister Abul Maal Abdul Muhith will present the National Budget
for the eighth consecutive time (and 10th, overall).
We already know that the budget size will exceed Tk340,000 crore. The size is
put into context by the fact that our national GDP has almost doubled in the last
five years, from $100 billion to around $200bn. Noteworthy is the widespread
media attention the budget has generated via pre-budget debates and
commentaries.
This is heartening, given the importance of the National Budget and regulatory
policies to the aspirations of a market economy in which 90% of activities stem
from the private sector.
While the resilience of the Bangladesh economy is now world famous, as is its
growth potential, it is important that the budget considers challenges that may
arise in the future. A potential challenge may lie in the remittance sector.
In the first 10 months of the current fiscal year, remittance received has fallen

Package VAT to continue in new fiscal

published: 01:24 june 2, 2016

While finance minister presents budget in the Parliament today, the government
has finally decided to continue with package value-added tax system for small
traders and halt implementation of controversial new VAT law from July.
The new law imposes a flat 15% VAT for all sectors, sparking outrage in the
business community and leading to calls for change in the law.
On Sunday, the businessmen protested the flat VAT rate shutting down their
businesses across the country.
Although the package VAT rate is to go on, the present rates, set at four
categories, will increase, even double.
Currently, small shops and traders in Dhaka and Chittagong city corporations
are under the package VAT rate of Tk14,000 each a year, while the small traders
in other city corporations pay Tk12,000. The rate is Tk7,200 in municipalities
and Tk3,600 in other areas.
Official sources said the tax-free individual income ceiling will remain

Package VAT stays but rates double

published: 02:16 june 3, 2016

The government has finally caved to the widespread protest from businesses as
it has decided to continue with the package VAT (Value Added Tax) system for
the small traders in the next fiscal year 2016-17.
However, the existing rates were proposed to be doubled, according to the
budget speech by Finance Minister AMA Muhith, that he placed in the parliament
on Thursday.
Package VAT is a square foot-based rate which the small stores enjoy by paying
VAT annually based on their shops locations and sizes, fixed by the National
Board of Revenue.
During his budget speech, the finance minister proposed to hike the package
VAT rate for Dhaka and Chittagong city corporations to Tk28,000 from existing
Tk14,000, while the rate would be Tk20,000 from existing Tk12,000 for those in
other city corporations.
He also proposed to set the package VAT at Tk14,000 from existing Tk7,200 for

New VAT law from July 2017

published: 02:32 june 3, 2016

For the time being, the new VAT law will not come into effect as there is not
enough preparation to fully implement the change, the government has
decided.
However, some changes will be brought to the existing laws to prepare
taxpayers for the inevitable switch to the controversial Value Added Tax and
Supplementary Duty Act 2012 on July 1, 2017.
The new law has drawn widespread criticism as it will impose a flat 15% VAT for
all sectors and emphasise on proper account keeping of transactions at every
stage of supply of goods and services by both manufacturers and service
providers.
Unfortunately, the necessary preparation for achieving the above objectives is
far from satisfactory. Under the above circumstances, the government has
decided not to fully implement the new act from the next financial year. Rather,
the government has decided to fully implement the new act from July 1, 2017,
Finance Minister AMA Muhith said while unveiling the proposed budget for fiscal

Import duty on wireless tech reduced

published: 02:03 june 3, 2016

Finance Minister AMA Muhith proposed to reduce import duty on WiFi and Wimax
LAN card and access point related products to 15% from 25%.
We have been providing duty tax exemptions and concessions to most items in
the information technology sector in order to establish a digital Bangladesh
said Muhith during his budget speech yesterday.
Duty reduction on some of the components used to manufacture SIM cards,
scratch cards, credit cards and other smart cards was also proposed in order to
support the sector.
The finance minister also proposed an increase of import duty on biometric
finger print scanner to 5% from the existing 2%.
Optical fibre cables import duty was proposed to be increased to 15% from
existing 10%.

AIT removed from vehicles owned by govt, foreign mission

published: 02:28 june 3, 2016

Thursdays budget proposed the removal of advance income tax (AIT) on Motor
vehicles owned by the government and local government on the renewal of
fitness certificates and registration fees.
In addition, vehicles owned by projects, programme or activity under
government and local government will enjoy the same benefits.
*
The government has also offered the benefits to UN, foreign missions and
freedom fighters with the finance bill 2016.
Motor cars owned by foreign diplomats, a diplomatic mission, United Nations
and its offices, development partner of Bangladesh and its affiliated offices,
educational institution under the Monthly Payment Order of the government,
public universities, a gazetted war wounded freedom fighter and institutions
that has obtained a certificate from the board will fall under the new proposal of
exemptions from AIT.

RMG corporate tax cut, but still high

published: 01:10 june 3, 2016

In the proposed budget, corporate tax on the export-oriented readymade

garment industry has been reduced to 20%.
As part of our continued support, I propose to reduce the tax rate of the RMG
sector from 35% to 20%, said Finance Minister AMA Muhith in his budget
speech yesterday.
However, the garment exporters demand was to cut the rate to the FY2014-15
level which was 10% as high corporate tax discourages new investment.
The proposed 20% rate is still high. We asked for 10% as high corporate tax
discourages new investment into the industry, BGMEA Vice-President
Mohammad Nasir told the Dhaka Tribune in an immediate reaction after the rate
was proposed.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA)
demanded a 10% rate as corporate tax for the industry which makes up more
than 80% of the countrys total export earnings.

Govt targets to take tax-GDP ratio to 15.3% by FY2019

published: 03:11 june 4, 2016

The government has set a target to take the tax-GDP ratio of Bangladesh to
15.3% from the existing 10.3% of the total revenue by 2018-19, when the
current government ends its term.
Currently, the tax-GDP ratio of Bangladesh is at 10.3% - lowest in the world
while it is 20% to 32% in neighboring countries.
The 83-year-old Finance Minister AMA Muhith declared the target while unveiling
the budget for the fiscal year 2016-17 at the parliament on Thursday.
With his budget speech, the veteran minister has proposed to set the revenue
income for the next fiscal year at Tk242,752 crore, which is more than 35%
higher than the previous year.
To reach the goals as proposed in the budget, the minister mentioned about
different reform initiatives to ease the tax collection procedure, increase
compliance, and prevent evasion of taxes.
Aims to add 3 lakh new taxpayers

Minister for delivering ECR machines in installment

published: 00:31 june 5, 2016

Liberation War Affairs Minister AKM Mozammel Haque has urged the
government to provide Electronic Cash Register (ECR) machines for the traders,
who are not able to pay the machine price instantly, through installments for the
effective use of the mechanism across the country.
Many foreign countries collect Value Added Tax (VAT) on sales through ECR
machines but these machines are very few in Bangladesh, said the minister
while addressing a seminar on new Value Added Tax and Supplementary Duty
Act 2012 held at IDEB Bhaban in the city yesterday.
In this regard, citing an example, he further said: Only 5 to 10 shops in Gazipur
uses the ECR machines.
Addressing the seminar, as chief guest, the minister said: If the mechanism can
be used properly, it can help the government earn higher amount of revenues.
Customs, Excise and VAT Commissionerate, Dhaka (South) organised the
seminar to aware the stakeholders about the new act.

RMG export strides against all odds

published: 00:53 june 7, 2016

Apparel export will predictably cross this fiscal years target as the earning is
already more than $25bn with one month left before another year begins,
according to latest official figures.
The target was set at $27.37bn for the FY2015-16 after earning $25.49bn in last
fiscal.
After Rana Plaza tragedy in 2013, observers prophesied that the countrys
biggest export industry might face severe image crisis and suffer loss of global
market share.
But it has continued to shine ever since as a lot of investment has been made to
improve factories safety standards with the help of its Western retailers.
This demonstrates in the sectors nearly 9.44% growth to reach $25.08bn in first
11 months of the current fiscal year.
RMG makers believe improvement of safety standards and progress of
remediation work in factories have helped to restore buyers confidence.

Garment accessories exporters demand 0.6% tax at source

published: 00:49 june 7, 2016

Garment accessories manufactures and exporters called on the government to

keep tax at source at 0.6% for exporters in the upcoming fiscal year.
The government proposed 1.5% tax at source for exporters in the fiscal year
20016-17 budget.
Bangladesh Garments Accessories and Packaging Manufacturers and Exporters
Association (BGAPMEA) President Md Abdul Kader Khan made the call at a press
conference in Dhaka yesterday.
The accessories and packaging sector is closely related with the readymade
garment sector as a backward linkage industry and making remarkable
contribution to export earnings, Abdul Kader Khan said.
He said as the sector was struggling to survive due to production cost hike, the
government should not increase the rate of tax at source and keep it at the
present level of 0.6%.
This sub-sector of the RMG industry also demanded cash incentives against the

VAT exemption for herbal medicine, ready-mix concrete to continue

published: 01:41 june 9, 2016

The National Board of Revenue (NBR) has extended Value Added Tax (VAT)
exemption on ayurvedic, unani and herbal medicines and also on ready-mix
concrete.
These products had been enjoying VAT exemption on production stage.
However, the budget documents for fiscal year 2016-17 did not include the
provisions, officials said.
The benefit was not extended mainly due to mistake by officials, an official
said, asking not to be named.
To extend the benefit, NBR has published a special order signed by its second
secretary M Moshiur Rahman on Tuesday.
The order of VAT exemption, however, came into effect from June 2, 2016, the
order reads.
The government has set the total revenue target tax and non tax revenue - at
Tk242,752 crore, which is around 12.4% of the gross domestic product (GDP) of

Barvida seeks special duty benefit for reconditioned hybrid cars

published: 01:45 june 12, 2016

Reconditioned vehicle importers and dealers want special duty benefit on the
import of reconditioned hybrid cars to increase the sale of eco-friendly vehicles
in the country. At a press conference yesterday, they said although the
government offered such benefit for new hybrid cars in the proposed budget,
reconditioned ones were omitted.
Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida)
termed the move as discriminatory and called on the government to offer
special duty benefits for reconditioned hybrid cars.
Barvida Secretary General Mahbubul Haque Chowdhury Babar said the duty
waiver for new hybrid cars, that has been for last eight years, didnt benefit the
buyers much due to their high prices. He said only 300 new hybrid cars were
imported in last three years despite the facility.
In the FY2016-17 budget, Finance Minister AMA Muhith said concession of duty
for hybrid cars on the basis of engine cylinder volume has been proposed for
revision because of their importance as a fuel-efficient and environment-

Refinancing scheme demanded to boost real estate sector

published: 00:51 june 13, 2016

Realtors have demanded stimulus package and reinstatement of a single-digit

refinancing scheme for the countrys housing sector to overcome crucial time
gripping the real estate business.
The apex body of the housing sector also demanded tax holiday for the next five
years for realtors making construction within the capital and 10 years for
outside the city areas.
Real Estate and Hosing Association of Bangladesh (REHAB) president Alamgir
Shamsul Alamin came up with the demand at a press briefing yesterday.
We have to think twice whether we will sit with the National Board of Revenue
to discuss the budget as there was no reflection of our recommendations in the
proposed budget, Alamgir said in his reaction.
REHAB gave a 13-point proposal to the NBR to include in the National budget
2016-17, but to no avail.
The sector is going through a crucial time, and to overcome the situation, the

NBR revenue collection rises 16% in first 10 months of this fiscal year
published: 01:09 june 14, 2016

The revenue collection by the National Board of Revenue grew 15.72% in the
first 10 months of the current fiscal year from the same period a year earlier.
NBR mobilised Tk1,19,338 crore during the July-April period of the FY2015-16
against its downsized revenue target of Tk1,50,000 crore, according to NBR
official data.
The collection is around 80% of the revised target of the fiscal year.
The government in April reduced NBRs revenue collection target by 15% from
the original target of Tk1,76,370 crore due to slow growth of collection and poor
results of different economic indicators.
The overall growth in the first 10 months was 15.72%. During the period,
customs duty rose 18.16%, value added tax 12.25% and direct tax that includes
income tax and travel tax 17.64%.
From July to April, the customs duty wing collected Tk36,080 crore, VAT wing
Tk44,626 crore and income tax plus travel tax collected Tk38,632 crore.

Indian supplier for Rampal plant to get tax exemption

published: 01:45 june 14, 2016

Indian company Bharat Heavy Electricals (BHEL) which acts as the contractor for
the under construction 1,320MW coal based power plant in Rampal is going to
get tax exemption for bringing in machinery and equipment for the plant.
The decision of giving the contractor this favour of tax exemption at source was
taken during a meeting at the Ministry of Finance on Sunday. Finance Minister
Abul Maal Abdul Muhith presided over the meeting.
The National Board of Revenue (NBR) is going to provide its approval in favour
of BHEL and the owner of the plant Bangladesh-India friendship Power Company
Limited (BIFPCL) very soon, sources present at the meeting said.
Previously, BIFPCL was exempted from paying VAT for 10 years as it was
implementing a project listed under the fast tract project of the government.
Bangladesh Power Development Board (BPDB) and the Indian National Thermal
Power Company Limited (NTPC) have equal ownership of the BIFPCL.
BIFPCL selected BHEL as the contractor of the plant in March. Indian Exim bank

Rubber & plastic shoe makers want VAT exemption

published: 01:12 june 15, 2016

Manufacturers of the plastic shoes and slippers have urged the government to
continue Value Added Tax (VAT) exemption facilities for their survival.
Bangladesh Paduka Prostutkarok Samity (BPPS), Bangladesh Footwear and
Footwear Accessories Manufacturers Association and the Bangladesh Rubber
Industries Association came up with the call at a joint press briefing held in the
city yesterday.
Finance minister AMA Muhith proposed to withdraw the VAT on shoes and
slippers made of rubber and plastic valuing up to Tk120 a pair while unveiling
the budget for the fiscal 2016-17 in the parliament on June 2.
The proposal for VAT withdrawal is illogical as it will hurt the rubber and plastic
shoemakers along with cookeries and plastic-made household goods, said BPPS
President Shakhawat Hossain Belal.
He demanded scrapping of the discriminatory proposal, so the sector could
survive and poor people could afford buying rubber and plastic made shoes and

ICT sector wants tax exemption till 2024

published: 01:03 june 19, 2016

Information Communication and Technology sector called on the government to

offer it tax exemption till 2024 and ensure a favourable business environment to
help its expansion in Bangladesh.
The call came at a roundtable on the proposed budget and the reality of the
countrys IT sector yesterday. Bangladesh Association of Software and
Information Services (BASIS) organised the event at its auditorium in Dhaka.
We want no VAT and tax till 2024. This time we also have to draw at least
Tk100 crore investment in the IT sector, said Razib Ahmed, president of ECommerce Association of Bangladesh (e-CAB).
He stressed the need to reduce the reign of foreign companies in local ICT
industry and increase the capacity of local companies.
Former BASIS President Fahim Mashroor feared that the increase of personal
income tax in the budget will greatly affect the ICT industry entrepreneurs.
He urged the government to continue the incentives that are already in place.

A closer look at the new budget

published: 01:18 june 20, 2016

How do VAT and customs duty fare in the new budget? This is the concluding
part of a two-part long form.
Income from VAT has been identified as the highest source of revenue for the
NBR. The revenue target for VAT in the proposed budget has been fixed at
Tk72,764 crore, some 35% higher than the revised VAT target for Tk53,913cr in
the outgoing fiscal.
It is unfortunate that the new VAT and SD Act 2012 could not be introduced. The
business community reportedly could not be convinced with this. The
government should take immediate steps to remove the disconnects so that it
can be implemented smoothly in coming year.
Though the new VAT and SD Act has not come to effect, the government has
tried to increase the existing truncated VAT rate to around the standard rate of
15% and removed various exemption facilities which will affect the concerned
business areas.

Govt to give traders ECR, POS machines

published: 01:27 june 20, 2016

The government may distribute Electronic Cash Register (ECR) and Point of
Sales (POS) machines among traders to prevent evasion of value-added tax.
The traders, who are eligible to use such electronic machines, have to collect
those machines mandatory from the government and use them at their selected
stores, so no traders can evade the VAT or manipulate the transaction records,
said officials.
The government is planning to introduce the system in the wake of rampant VAT
evasion across the country.
The National Board of Revenue (NBR) will file cases against those eligible
traders who are not using these compulsory machines in their own stores, said
officials.
While unveiling budget for the fiscal year 2016-17 on June 2, Finance Minister
AMA Muhith said: The government will collect the ECR and Point of Sales (POS)
machines by itself and will deliver them to the companies.

E-TIN mandatory from Tk16,000 salaries

published: 01:26 june 21, 2016

People with monthly salary of Tk16,000 and above must register with electronic
taxpayers identification number (eTIN) from next fiscal year.
With the Finance Bill 2016, the government has made registration with eTIN
mandatory for all salaried individuals.
This will be applicable for both public and private sector employees.
According to the bill, the eTIN will be mandatory for employees working in
government offices - an authority, corporation, body or units of the government
or formed by any law, order or instrument being in force - if the employee, at
any time in the income year, draws salary at a scale of grade 10 or basic salary
of Tk16,000 or above.
However, such marginal taxpayers with e-TIN do not have to submit their
income tax returns.
Submission of income tax returns will only be applicable for people with annual
income of above Tk2.50 lakh.

Government to become harsh on payroll tax

published: 01:54 june 24, 2016

In the wake of widespread irregularities by many private firms in withholding tax

deduction from the payroll tax, the government has decided to become tougher
on them to bring compliance in the system and boost the income tax collection.
It is being widely alleged that many companies are currently involved in income
tax evasion by playing hide and seek with their expenses paid to staffs as
salaries.
However, the chances may not be continued any further as the government has
already undertaken a plan to become harsh on those unscrupulous companies
to bring transparency in the process by boosting compliance culture.
As per the proposed budgetary measures for fiscal year 2016-17, a company
has to make sure that all its employees, who are eligible to have a 12 digit
Taxpayers Identification Number, are doing it properly.
If the company fails to make sure compliance of the provision, any payment by
the way of salary to an employee, who is not registered with 12 digit Taxpayers

DNCC announces Tk2083cr budget

published: 01:44 june 27, 2016

Dhaka North City Corporation (DNCC) has proposed a Tk2083.35 crore budget
for fiscal year 2016-17.
The budget is double the size of the revised budget for the previous fiscal year,
which was Tk1010.45cr, while the proposed budget for that fiscal year was
Tk1601.95cr.
DNCC Mayor Annisul Huq announced the budget at Lakeshore Hotel in Dhakas
Gulshan yesterday.
Annisul said: This year, the budget is two times the previous fiscal years
revised budget, which means we will see more development in the city than the
past.
Of the total budget, Tk1559.31cr will be spent on infrastructural development,
waste management, mosquito control, beautification and others, he said.
Besides, money will be spent on maintenance and development of roads,
drains, footpaths, hospitals, markets, bus terminals, public toilets and libraries.

Proposed tax at source on export likely to be reduced

published: 01:38 june 27, 2016

The government is likely to reduce the tax at source on export from the
proposed 1.50% for the next fiscal year 2016-17 in the wake of hectic lobbying
from different stakeholders.
While placing the budget for FY16-17, Finance Minister AMA Muhith had
proposed to hike the tax at source on exports, including readymade garment
sector by 1.50%.
The minister proposed to set the tax rate at 1.5% from existing 0.60% for the
upcoming fiscal year.
Since then, leading business chambers and trade bodies have been pressing the
government to reduce the tax rate or keep it unchanged at 0.60% for the next
fiscal year considering the interest of exporters.
The government is now actively considering the proposal from the trade bodies,
particularly for hectic lobbying by readymade garment sector, to reduce the rate
although the rate is yet to be finalised, said the finance ministry officials.

Tax at source for RMG makers to be set at 0.8%

published: 02:34 june 29, 2016

The government has decided to reduce the rate of tax at source for the
readymade garment exporters to 0.80% from the proposed 1.50% for next fiscal
year 2016-17 in the wake of hectic lobbying from different stakeholders.
The tax rate for jute product exporters may also be set at 0.60% considering the
prospect of the industry, said the finance ministry officials.
Earlier on June 2, Finance Minister AMA Muhith had proposed to set the tax at
source on export to 1.50% from existing 0.60% for all the exporters.
Since then, leading business chambers and trade bodies have been pressing the
government to reduce the tax rate or keep it unchanged at 0.60% for the next
fiscal year considering the interest of exporters.
According to ministry officials, the proposed tax rate for other exporters may
also go down due to huge resistance by different quarters but the rate will not
be set below 1% considering the revenue prospects.
From July to April of FY16, the revenue authorities had collected over Tk1,300

Revenue collection crosses target

published: 01:53 june 30, 2016

Defying all uncertainties, the National Board of Revenue (NBR) has successfully
managed to mobilise an amount higher than its revised target of Tk1,50,000
crore for the outgoing fiscal year 2015-16 with a day still to go. The authorities
have already collected around Tk154,784 crore revenue against its revised
target of Tk150,000 crore set for FY2015-16. That means, the authorities have
surpassed the downsized target of around Tk4,784 crore by July to June of this
fiscal year, according to the latest provisional data.
*
During the period, the customs wing has collected around Tk44,855 crore
against the target of Tk42,500 crore, Value Added Tax wing collected over
Tk55,684 crore against the target of Tk54,064 crore and income tax wing
collected over Tk54,244 crore against the target of Tk53,436 crore, the data
shows.
The revenue collection grew by 14.06% from the revenue earning of FY14-15.
The customs wing posted highest 17.01% growth while VAT wing 13.61% and

Finance Bill passed

published: 01:52 june 30, 2016

Finance Bill 2016 was passed in parliament yesterday, cutting tax at source on
export to 0.70% from the proposed 1.5% for the fiscal year 2016-17.
Considering exporters demand, foreign exchange earning and the present
economic situation, I am requesting finance minister to reduce tax at source
rate on all exports to 0.70%, Prime Minister and Leader of the House Sheikh
Hasina told the Parliament during budget discussion yesterday.
She also requested Finance Minister AMA Muhith to cancel the proposed 15%
value added tax on house rent of companies providing Information Technology
Enabled Services (ITES).
Prime minister said the VAT should be lifted considering ITES companies
contribution to implement Digital Bangladesh vision, employment generation
and increasing of foreign investment in the IT sector. Currently, the ITES firms
pay 9% VAT on house rent.
She also said 1% customs duty on import of capital machinery should be

Low-cost fund sought to modernise textile and power-loom industries

published: 00:21 july 18, 2016

If quality of products is improved, local manufacturers would not import foreign

clothes and BGMEA will use the clothes made here
Bangladesh Specialised Textile Mills and Powerloom Industries Association
(BSTMPIA) demanded a single-digit loan facility to modernise the historic
industry for producing quality products and increasing productivity.
The association president Azizul Haque made the demand at a dialogue titled
Public private dialogue on overcoming challenges towards modernisation of
textile sector in the capital yesterday.
Currently, there are 30,000 to 40,000 textile mills in the country, of which 20%
to 30% are modernised and producing high quality export-oriented products
while the rest 80% use traditional power-loom to produce saree, lungi, poplin,
napkin, long clothes, shirting and suiting, said Azizul Haque.
That is why, the sector needs low-cost fund to set up modern machinery by next
10 years, Haque said, calling for an allocation of low-cost foreign funds for the

RMG makers want 0.70% tax at source as final settlement

published: 01:42 july 20, 2016

The countrys apparel sector has urged the government to fix 0.70% tax at
source on export as final settlement instead of making it just minimum rate.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made
the call in a letter to Finance Minister AMA Muhith on July 16.
BGMEA President Siddiqur Rahman sent the letter to the finance minister.
The rate was earlier reduced to 0.70% from 1.50% in the proposed budget.
Although the budget for the FY16-17 proposed to set tax at source on export to
1.5% for the apparel exporters, the rate was later reduced to 0.70% following
the intervention, reads the letter.
If the tax at source of 0.70% is considered as minimum tax, there are
possibilities of imposing other higher taxes and there are also possibilities of
harassment to entrepreneurs which will make the income tax return submission
process more complex, it added.
Urging the Finance Minister to intervene into the matter, BGMEA President in his

Supermarket owners reiterate demand for package VAT

published: 00:20 july 25, 2016

The supermarket owners in the country have further called upon the
government to ensure a uniform Value Added Tax (VAT) rate for all retail
supershops.
They demand that the government either withdraw 4% VAT on the sales of
superstores or remove the package VAT system for all retail stores across the
country.
Bangladesh Supermarket Owners Association (BSOA) in a recent letter to
Finance Minister AMA Muhith made the demand.
Currently, 4% VAT is applicable to the sales of supermarkets like Agora, Swapno
and Meena Bazar while the other shops enjoy a package VAT system on the
basis of their shops sizes and locations.
The uneven competition continues between the supermarkets and the general
shops for long as the price of products goes high at the superstores due to 4%
VAT on sales.

FBCCI to assist NBR in collecting pending revenues

published: 01:20 july 28, 2016

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has

assured the National Board of Revenue (NBR) of providing all kind of support in
the collection of the pending revenues and expediting its modernisation
activities.
The countrys apex trade body came up with the assurance to the tax
authorities at a joint meeting held at NBR headquarters in the city yesterday.
NBR Chairman Md Nojibur Rahman presided over the meeting, according to a
NBR press release issued yesterday.
Attending the meeting, FBCCI Chairman Abdul Matlub Ahmad said: The
revenue authorities will get better results and can collect more pending
revenues as long as all efforts are on.
Both the NBR and FBCCI are important partners, said Matlub who also assured
the revenue authorities of extending all sorts of necessary support from the
apex body in future.