Business
Reliable accreditation infrastructure crucial for strengthening export
Industries Minister Nurul Majid Mahmud Humayun said on Sunday that internationally accredited and reliable national accreditation infrastructure is crucial for strengthening export of local products and services.
The government has established a quality accreditation infrastructure ecosystem, he said at a seminar on the occasion of ‘World Accreditation Day 2022’ organized by Bangladesh Accreditation Board (BAB) and Dhaka Chamber of Commerce & Industry (DCCI) in the capital.
As a part of it, the efficiency of Bangladesh Accreditation Board has also been improved a lot and BAB is now well equipped to provide necessary accreditation. “Government is also considering formulating a national quality policy,” he added.
Also read: In May export income falls to 9-month low at $3.83 bn: EPB
“Our testing labs should be well equipped with modern technology so that our accreditation is accepted in the world market,” said the minister.
State Minister for Industries Kamal Ahmed Mojumder said accreditation is essential for the implementation of sustainable development goals (SDGs) enhancing the technological advancement and reliability.
Consumers’ satisfaction, confidence and export development are very important for our economic progress, he added.
Meanwhile, Zakia Sultana, secretary of the Ministry of Industries, said, “Due to unplanned industrialization worldwide and massive economic activities, we can see a negative impact on climate change where Bangladesh is no different. In that situation, if we are able to comply with the accreditation process for both goods and services, it will help us to ensure a better livable world for the next generation.”
Also read: Govt urged to provide policy support to plastic toy industry for its export-earning potential
DCCI President Rizwan Rahman also urged to implement advanced learning to our industrial sector and emphasized on strong collaboration with the international accreditation and quality assurance agencies to enhance business competitiveness in this changing business environment.
The main theme of this year’s Accreditation day is ‘Accreditation: Sustainability in Economic Growth and the Environment’.
IBTRA Chattogram holds entrepreneurship development programme
Islami Bank Training and Research Academy (IBTRA) Chattogram recently conducted a month-long entrepreneurship development training programme.
Twenty-five entrepreneurs received certificates for completing the training.
Also read: IBTRA 194th internship programme closing ceremony held
Arif Hossain Khan, director of the Bangladesh Bank Chattogram office, was present at the closing ceremony of the programme as chief guest. SM Rabiul Hassan, principal of IBTRA, presided over it.
Meah Md Barkat Ullah, head of IBBL Chattogram South Zone, Mohammad Nurul Hossain, head of Chattogram North Zone, and Mohammad Ataul Hoque Sirazee, head of IBTRA Chattogram office, also spoke at the programme.
Read IBTRA organises workshop on challenges of 4IR
Social stability a must to implement budget: Planning Minister
Planning Minister MA Mannan on Sunday said the economy is facing tough challenges now, and social stability is a must in such a situation to implement a budget whatever its size.
Bangladesh Bank and National Board of Revenue are working under pressure to control inflation and keep fortunes of fixed and lower-income segment stable, he said.
Also read:Growing per capita income contributed to reduce child marriage: Planning Minister
Mannan said this while speaking as the chief guest in the post-budget discussion organized by American Chamber of Commerce in Bangladesh (AmCham), held in a hotel in Banani on Sunday.
Former adviser of a caretaker government AB Mirza Azizul Islam, Ahsan H. Mansur, Executive Director, Policy Research Institute of Bangladesh (PRI), and Masrur Reaz, Chairman of Policy Exchange, Bangladesh spoke on the occasion.
Mirza Aziz said the budget size is acceptable but allocation in different sectors needs to be revised considering present economic challenges.
He also urged reform of the NBR and bond market, both of which need modernization and reformation to attract investment as well as foreign direct investment.
Ahsan H Mansur presented a keynote paper on different sides of the proposed budget and illustrated that two major problems have emerged: sharply widened trade account deficit due to a surge in imports leading to an unsettled foreign exchange market, and inflationary pressure.
Also read:Now is good time to invest in Bangladesh: Planning Minister
Global price shock in the aftermath of the pandemic due to the ongoing Russia-Ukraine war has led to a decline in inflow of workers’ remittances following reopening of international travel and the widening of the gap between the kerb market and interbank “exchange rate,” he added.
Slow and inadequate flexibility in the exchange rate and the inability to use monetary policy given the interest rate caps on the lending and deposit rates, are acting as restraints on policy, he said.
Banks must focus on digitalization, cyber security: BB Governor
Bangladesh Bank governor Fazle Kabir on Sunday said banks have to raise attention to digitalization along with investing more to protect financial operations from hackers.
He said with the development of online banking technology, threats are also being increased globally, banks have to monitor and vigilance round the clock on the security issues.
Also read: Inflation, unstable forex rate major challenges: BB governor
Kabir was addressing as the chief guest the opening of two-day cyber security summit titled 'Building Cyber Resilience for Banks' to make bankers aware about cyber security and prepare them for the future.
“As cybercrime grows in this age of digital banking, we must prepare ourselves to take risks. We believe that strong collaborative responses and knowledge sharing are essential to address these risks,” he added.
Also read:BB to set uniform exchange rate to stabilize volatile dollar
He hoped that the participants will return to their respective workplaces with sufficient knowledge about cyber security and prepare themselves for future challenges.
Selim RF Hussain, Chairman of Association of Bankers Bangladesh (ABB) presided over it. It was also addressed by Debdulal Roy, Bangladesh Bank Executive Director, Md Ataur Rahman Prodhan, ABB Vice-Chairman and Sonali Bank MD, Mohammed Haider Ali Miah, ABB Vice-Chairman and EXIM Bank MD, Khondoker Rashed Maqsood, ABB Secretary-General and Standard Bank MD, among others, spoke in the function.
NBR to install 10,000 EFD to prevent VAT evasion
The National Board of Revenue (NBR) will install 10,000 Electronic Fiscal Devices (EFDs) in Dhaka, Chattogram and other big cities in the fiscal year 2022-23 in a bid to prevent Value Added Tax(VAT) evasion.
Finance minister AHM Mustafa Kamal in the proposed budget of 2022-23 kept an allocation to install EFDs in different chain and super shops.
Also read: NBR slaps additional duty on 135 luxury items to discourage import
EFD is an improved version of Electronic Cash Register or ECR, which is imported by the NBR.
If EFD is used in business, VAT money will be automatically transferred to the main server of NBR.
In this system, the traders cannot hide the sale information and the real information of daily transactions will be transferred to the NBR server which will help to reduce fraud, NBR sources said.
In the budget speech, the finance minister said, "In order to increase revenue collection in various types of retail and wholesale businesses, two years ago, in the budget of 2020-21, for the first time, a state-of-the-art electronic fiscal device system was introduced."
Since then 4,595 machines have been installed. A total of 10,000 EFD machines are planned to be installed in various businesses by June 2023.
"We are in the process of setting up the machine through outsourcing as well as keeping the programme running. As a result of this step, I hope that the collection of VAT will reach the desired level by 2026,” he added.
In this year's budget, the target for total revenue collection through NBR is Tk 3.70 lakh crore. Of this, Tk1.36 crore will come from VAT, which is 37 percent of the total collection.
Also read:Income Tax Wing of NBR racing to meet target in last 4 months of fiscal
Officials at the NBR's VAT department said huge amounts of VAT are evaded at the retail and wholesale levels.
Revenue earning will be increased all retail and wholesale businesses are brought under the machine system, they said.
Budget FY23 to put local refrigerator, freezer industry at stake: Experts
Tax concessions given to the refrigerator and freezer assembling industry in the proposed budget for the fiscal year 2022-23 will raise the number of assemblers, instead of the actual producers, according to experts.
Lowering tariffs on the import of spare parts for the local refrigerator and freezer production industry will further boost the assembling industry, hurting the government's plans to reduce overall imports, they added.
Also, investments in the full-fledged local refrigerator and freezer manufacturing industry will be at stake.
Read: Law bars asking questions about laundered money: Finance Minister
Finance Minister AHM Mustafa Kamal said, "We are discouraging imports of products that are locally manufactured. If the products that are produced in the country are used by us, local production will go up. We do not want these products imported from abroad."
However, the Internal Resource Division of the finance ministry issued a statutory regulatory order (SRO) with the budget proposals where the tariff on the import of spare parts has been fixed in two categories of local refrigerator and freezer manufacturing industry.
According to the SRO, a company will be considered a category 1 refrigerator manufacturer if it produces main parts and one or more important parts of the refrigerator.
A company that produces only the body cabinet of the refrigerator will be considered a category 2 refrigerator and freezer manufacturer.
This indicates no difference between the full-fledged manufacturing and assembling industries.
Read: Good governance major challenge to implement budget: FBCCI
The move will discourage the establishment of full-fledged manufacturing industries, the experts said. "Local entrepreneurs will be more interested in setting up assembling plants instead of full-fledged manufacturing ones."
Md Iftekhar Hossain, professor of economics at Dhaka University, said policy and duty support should not be given to the assemblers in the sectors where there are full-fledged manufacturing industries capable of meeting local market demands.
"The government has always given importance to boosting the domestic industries. It is also good for the country's economy. However, the decision has to be made according to the production volume," Economist Abu Ahmed, honorary professor at the economics department of Dhaka University, said.
"If the finished products are contributing more than the production in the assembling industry, then the producers' benefits should be increased."
Focus on extending tax net to enhance Tax-GDP ratio: ICAB
The Institute of Chartered Accountants of Bangladesh (ICAB) on Saturday in a budget reaction said more initiatives are required to extend the tax net for increasing tax-GDP ratio in the country.
The ICAB and the National Board of Revenue (NBR) can work together to verify company documents on income tax return issues which will help the government to achieve the fiscal revenue collection target, ICAB leaders said.
The ICAB said this in a press conference for a formal reaction on the proposed budget, held at CA Building at Karwan Bazar in the capital.
Also read: Budget: Dr Atiur for reconsidering some tax proposals
Md. Shahadat Hossain FCA, president ICAB, Md. Humayun Kabir FCA, ex-president, ICAB, and Shubhasish Bose, CEO of ICAB, spoke at the function.
The ICAB thanked Finance Minister AHM Mustafa Kamal for receiving almost all proposals of the institution on supplementary duty, tax and VAT related issues.
Reduction of the ratio of source tax and its field, tax reduction for specific companies in special rate are appreciated in the proposed budget.
Separate policy and regulation for start-up business will attract the generation to start innovative business, said ICAB.
The ICAB leaders also said changing revenue policy for some sectors will encourage export variation, which is needed to increase export volume of Bangladesh.
“Input Tax Credit on Business Services Proposal to reduce fines from 100 percent to 50 percent and maximum 100 percent, to perform operations electronically in a bonded warehouse - These topics are up-to-date and business friendly,” said ICAB in the budget reaction.
Also read: Budget FY23: Laundered money to be legalized by 7-15 pc tax
Md. Shahadat Hossain FCA, president ICAB, Md. Humayun Kabir FCA, ex-president, ICAB, Shubhasish Bose, CEO of ICAB, spoke at the function.
NKA Mobin FCA, Sabbir Ahmed FCA, Md, Abdul Kader Joarddar FCA, Snehasish Barua FCA, Mahbub Ahmed Siddique FCA, among others, present in the press conference.
Good governance major challenge to implement budget: FBCCI
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Saturday said good governance is a major challenge in implementing the proposed budget for the fiscal year 2022-23.
FBCCI president Md. Jasim Uddin came with the remark at a press conference on post-budget reaction held at FBCCI Building in Motijheel.
He said, "The size of the budget is very timely to implement the government's commitment to meet the needs and aspirations of people in face of inflation due to Covid-19 pandemic and the Russia-Ukraine war.
He noted the importance of ensuring clear direction and planning for the continuous development of efficiency, transparency, accountability and quality of supervision in the implementation of the proposed budget.
He proposed to include in the budget- employment growth, increased domestic investment, increased food production and continued fertilizer subsidies, emphasis on health, education and human resource development, export diversification, job creation and rural development and completion of PM incentive packages and expansion of social security initiatives.
Read: FBCCI to work for restoring confidence in e-commerce sector
Jasim also expressed his dissatisfaction for not implementing the FBCCI’s recommendations related to tax and VAT.
Replying to a query, the FBCCI president said the trade body does not support money laundering and it brings back the process by paying a nominal tax. This will discourage honest business in the country, he said.
FBCCI senior vice president Mostafa Azad Chowdhury Babu, BKMEA president Mohammad Hatem, DCCI president Rizwan Rahman and leaders of various organizations were present at the press conference.
Finance Minister AHM Mustafa Kamal placed the budget of Tk 6.78 trillion for the fiscal year 2022-23 on June 9.
The proposed budget’s expenditure for the fiscal year 2022-23 is 14.25 percent more than the revised budget for the outgoing fiscal year. The proposed budget is 12.32 percent more than the original budget of fiscal year 2021-22.
Law bars asking questions about laundered money: Finance Minister
Finance Minister AHM Mustafa Kamal has said the government is obliged by a law that those who will bring back their laundered money home will not be questioned any more.
Defending his move, announced in the national budget for FY2022-23, he said most of such money is undeclared and smuggled out due to the faulty system.
He made this remark while addressing a post-budget press conference at Osmani Memorial Auditorium in the city on Friday.
Also read: Budget offers no good news for lower, middle income groups: CPD
Fielding a volley of questions on the issue, he said many countries in Asia, America and Europe have declared amnesty for the money launderers.
According to a provision declared in the newly placed national budget, no authority, including the income tax collectors, shall raise any question as to the source of any asset located abroad if a taxpayer pays extra taxes on such assets.
The proposed rate is 15 per cent for immovable property not repatriated to Bangladesh, 10 per cent for movable property not repatriated to Bangladesh and 7 per cent for cash and cash equivalents repatriated to Bangladesh. This will take effect from July 1.
A question was asked by a reporter that in the past the government had declared a "Truth Commission" and provided scope for legalising illegal money through paying tax, but later the names of the persons who took the opportunity were disclosed.
So, how could people trust the new assurance and take the opportunity?
Answering the question, Kamal said the government will use some tools so that people will be encouraged to bring the smuggled illegal money back.
"But this will not discourage or undermine those people who regularly pay taxes", he added.
Supporting his view Agriculture Minister Abdur Razzak, who present on the occasion, supported the government move in this regard and said that the Truth Commission was formed during the caretaker government which was a non-constitutional government.
"But Awami League is a constitutional government and the relevant law is passed by the government to give the guarantee to the people not to raise any question in future", he added.
The finance minister claimed that the newly unveiled national budget will bring benefits for all the segments of the society, specially, for the poor.
"I was born in a poor family and raised up from poverty. So, I do feel the pain of the poor", he said, adding that so many measures including allocation for social safety-net programmes were increased in the new budget.
Budget offers no good news for lower, middle income groups: CPD
The Center for Policy Dialogue (CPD), a private think-tank, has found no good news for lower and middle-income groups in the newly announced budget, voicing doubt about government’s ability to lower the inflation rate at 5.6 per cent.
Finance Minister AHM Mustafa Kamal placed the budget for FY2022-23 expecting inflation rate to come down to 5.6 per from over 6.29 per cent (in April as per BBS).
Also read: Budget to make economy stronger: Finance Minister
Experts and economists believe the inflation has hit over 10 per cent.
As a result, lower, middle class and fixed income groups will face challenges to run a family as the commodity prices are unlikely to come down if the inflation trend remains higher.
The CPD made the observation at a press conference in a city hotel on Friday, a day after presentation of Bangladesh’s national budget of Tk6.78 trillion for the upcoming fiscal year starting from July 1.
“The prices of all kinds of goods including fuel oil and food products are increasing in the international market. Commodity prices have been rising in the world market since the Covid-19 situation began to normalize,” said Dr Fahmida Khatun, executive director of CPD.
She said, "The budget has not taken adequate steps to reduce the prices of essential commodities. It was necessary to reduce the prices of 29 commodities including rice and pulses, but it did not happen. The CPD had recommended a reduction in taxes to reduce the prices of commodities. But that too was not kept.