Tax
Robi's profit after tax grew 1.3% in '22
Forex loss dealt a heavy blow on Robi’s financials as it knocked off 49% of its profit after tax (PAT) in 2022. Instead of around 361 crore taka, Robi could only book 182.7 crore taka as PAT for the year; which means around 179 crore taka was lost as PAT due to this reason. Robi disclosed this while releasing its financial results for 2022 on Sunday.
Robi continued to enjoy 4G leadership position in 2022 with 53% of its total subscribers being 4G users. Around 76% of Robi’s subscriber base were data users in 2022, which was the highest in the industry. Robi ensured 98.3% population coverage of its 4G network with around 16,000 4G sites at the end of 2022. Compared to 2021, data usage per subscriber, per month, increased by around 36%. In 2022, each Robi data subscriber consumed 5.5GB data every month on an average.
Robi’s subscriber base grew by around 1.4% compared to 2021 to reach 5 crore 44 lakhs at the end of 2022, representing 30% of the subscriber market share; on the other hand, data subscriber base grew by 4% in 2022 to reach 4 crore 11 lakhs. Meanwhile, compared to 2021, Robi’s 4G subscriber base grew by 21% to reach 2 crore 89 lakhs.
With 2,254.3 crore taka revenue in Q4’22, Robi’s revenue in 2022 reached 8,586 crore taka. Compared to 2021, revenue rose by 5.4% in 2022. Compared to Q4’21, revenue rose by 10% in Q4’22.
Voice revenue in 2022 increased by 9%. Compared to Q4’21, voice revenue rose by 7% in Q4’22. Data revenue increased by around 2%, compared to 2021. Compared to Q4’21, data revenue rose by 16% in Q4’22. Including 384.4 crore taka CAPEX investment in Q4’22, Robi’s total CAPEX investment for 2022 reached 1,530 crore taka.
Including 126 crore taka Profit After Tax (PAT) in Q4’ 22, Robi ended 2022 with 182.7 crore taka PAT, which is around 1.3% higher than 2021.
EBITDA in Q4’22 was 1,066.4 crore taka (with 47% margin), while the EBITDA for 2022 reached 3,854.3 crore taka (with 45% margin), marking a rise of 16.5% compared to 2021.
Robi’s total contribution to the Government exchequer reached 4,816 crore taka in 2022, including 1,366 crore taka in Q4’22. Robi contributed 60% of its revenue in Q4’22 and 56% of its revenue in 2022 to the Government exchequer.
The company’s earnings per share (EPS) in Q4’22 was 0.25 taka; EPS for 2022 was 0.35 taka, which was around 1.3% higher than 2021. Had we not lost nearly half of our PAT to forex loss, our EPS for 2022 would have been 0.67 taka, which would have been 96% higher than 2021.
Robi’s Board of Directors have recommended cash dividend at the rate of 7% (i.e. BDT 0.70 per share), which represents 200.7% of the PAT for 2022. The decision was taken at the Board Meeting held on 16th February, 2022. Robi’s 27th Annual General Meeting is scheduled to be held on 25th April, 2022.
Commenting on the financial performance of the company, Robi’s CEO, Rajeev Sethi said: “Forex loss has deprived us from a stellar year; our moment of glory was snatched away when PAT literally halved due to forex loss. On top of that, application of 2% minimum tax felt like the last nail in the coffin as far as our PAT for the year was concerned. On the positive side, we managed to make significant gains out of our optimized cost structure.
Going forward we will continue to leverage cost optimization to strengthen our bottom-line.”
Raising concern over the unsustainability of the data business, he said: “Despite data traffic growth of 45%, our data revenue in 2022 only increased by around 2% compared to 2021 due to ever sliding data price induced by aggressive price war in the industry. In absence of data floor price, such price war is rendering the data business unsustainable. We urge immediate attention of the regulator on this matter.”
Reflecting on the completion of Robi’s 25 years anniversary, Robi’s CEO Rajeev Sethi said: “2022 will always remain a special year for Robi, as we celebrated 25 glorious years of our operation this year. It was particularly heartening to note that we observed this poignant moment of our journey with the largest percentage of 4G users in the industry (53% of our subscribers being 4G users.
Read more: Forex reserves can cover import for 5 months: Quader
Tax officials search BBC's Delhi offices weeks after Modi documentary
Officials from India’s Income Tax department began conducting searches Tuesday (February 14, 2023) at the BBC’s offices in the capital, New Delhi, three of the broadcaster’s staff members told the Associated Press.
The search comes weeks after the British broadcaster released a controversial documentary that examined Prime Minister Narendra Modi’s role during the 2002 anti-Muslim riots.
Teams from the tax department surveyed the BBC's Delhi and Mumbai offices, the Press Trust of India news agency reported, quoting officials who were not identified.
Also Read: BBC film on India's PM Modi, 2002 riots draws government ire
India banned the two-part documentary “India: The Modi Question” last month and authorities scrambled to halt screenings of the program and restrict clips of it on social media in a move that critics and political opponents decried as an assault on press freedom.
India’s Foreign Ministry called the documentary a “propaganda piece designed to push a particularly discredited narrative” that lacked objectivity.”
The BBC in a statement had said the documentary was “rigorously researched” and involved a wide range of voices and opinions.
Read More: Sexual harassment, misconduct went on unchecked at Al Jazeera, staff allege: BBC investigation
“We offered the Indian Government a right to reply to the matters raised in the series — it declined to respond,” the statement said.
Pakistan set for tax hikes in return for massive IMF bailout
Cash-strapped Pakistan will impose new taxes of 170 billion rupees this month in a bid for massive bailout, officials and analysts said Monday, even as they warned the new taxes could accelerate the country's spiraling inflation.
The dire outlook from economists and political analysts comes after the International Monetary Fund delayed the release of a crucial $1.1 billion portion of a 2019 deal worth $6 billion, on hold since December over Pakistan's failure to meet the terms. The latest round of the talks between Pakistan and the IMF concluded Friday with the fund recommending steps including imposing new taxes.
“The imposition of more taxes means tough days are ahead for the majority of the people in Pakistan who are already facing higher food and energy costs, but there is no other way out if Pakistan needs the IMF loans, and Pakistan desperately needs it," said Ehtisham-ul-Haq, a veteran economist.
The stalemate in talks between IMF and Pakistan was seen as a blow to the government of Prime Minister Shahbaz Sharif, who is struggling to avoid a default amid a worsening economic crisis and a surge in militant violence. Pakistan already is struggling with the recovery from record-breaking floods, which killed 1,739 people in summer 2022 and destroyed 2 million homes.
In January, dozens of countries and international institutions at a U.N.-backed conference in Geneva pledged more than $9 billion to help Pakistan recover and rebuild from devastating summer floods, but economists and Pakistani officials say those funds will be given for the projects, and not in cash.
Also Read: Pakistani Foreign Minister Bilawal Bhutto in Moscow on official visit
Since then, Pakistani Finance Minister Ishaq Dar has said that his experts were preparing to impose additional taxes and slash subsidies on electricity, gas and more to meet the deal’s terms.
Haq, the economist, said Pakistan's inflation rate of 26% will jump to 40% after the imposition of new taxes. But, he said in an interview, “life will become more difficult for the common man if Pakistan fails to revive the IMF bailout without any further delay."
Officials say several friendly countries like China, Saudi Arabia and the United Arab Emirates had assured Sharif's government that they will financially help Islamabad — but they too wanted Pakistan to complete the 2019 IMF program.
Imtiaz Gul, a senior Pakistani political analyst, said Sharif's government is likely to raise taxes on those who are already paying taxes.
“There is a need to broaden the tax base," he said, but raising taxes "will trigger an increase in the prices of all essential items."
The government insists that it will impose new taxes in such a way that poor people are not affected. The new taxes will be imposed on those who can afford to pay additional taxes to save the economy, the government said.
Pakistan's foreign exchange reserves have fallen to slightly over $2 billion. That’s enough only to pay for imports for 10 days. Officials say Pakistan's talks with IMF will resume virtually later Monday or Tuesday. Sharif last week warned that Pakistan would have difficulty complying with the IMF’s conditions.
Sharif's predecessor, Imran Khan — now the opposition leader since his ouster through April's no-confidence in Parliament — has been warning that Pakistan could face a Sri Lanka-like situation because of the deepening economic crisis. He has publicly warned that Pakistan could be blackmailed by the world community over the country's nuclear program if Pakistan defaults in the near future.
Khan insists his government was ousted under a U.S. plot, a charge Washington denies.
Reform must to reduce indirect tax burden on lower income groups: Speakers
Speakers at a dialogue said that the income inequality in Bangladesh is widening due to indirect tax burden to lower income groups, while rich people are paying less comparing to their income and wealth.
The speakers said this while speaking at a policy dialogue on ‘Using direct taxation to tackle inequality and boost revenue’ held at BRAC Inn in the capital on Wednesday (December 28, 2022).
Dr. Mohammad Abdur Razzaque, Chairman of Research and Policy integration for Development (RAPID) presented a keynote paper on the topic.
Former chairman of NBR Dr Muhammad Abdul Mazid, Director General of BCS (Tax) Academy MM Fazlul Haque, Professor of DU Dr Abu Eusuf, Finance Division (budget) joint secretary Dr Mohammad Abu Yusuf, ERD Joint Secretary Md Anowar Hossain, among others, spoke in the function.
Read more: Tax return submission deadline extended to January 1, 2023
RAPID Chairman Dr Razzaque explained in the keynote paper that income inequality is widening in society despite growth in manufacturing, agriculture, and other sectors due to an unjust taxation system.
This income discrimination would be more if the reform in the taxation system is not done with a strong commitment to the nation, he pointed out.
“Comparing the small GDP of many other economies in the world, Bangladesh earns only 35 percent of its revenue from direct tax while it is 65 percent from indirect tax. It is expected to be 70 percent revenue from the direct tax, considering the volume of the country’s (Bangladesh) economy like some other countries,” he added.
Dr Razzaque said that recently the NBR announced to increase the share of direct tax from 35 to 70 percent of total revenue – which is a welcome initiative and will drive economic growth and strengthen the government’s ability to provide essential public services.
Read more: Present tax system is not in favour of industrial development: BCI
But the implementation of the target is far behind the projected time, he said.
Dr Abdul Mazid said, “The NBR must be established as a state agency, and not a government agency. As such, NBR should not be dependent on the government. Rather, it should be an independent operator on behalf of the state.”
He emphasized long-term planning to increase revenue collection by reforming Bangladesh's taxation system and the NBR.
Present tax system is not in favour of industrial development: BCI
Bangladesh Chamber of Industries (BCI) has said that the present tax system is not in favour of industrial development.
Loss in business is not considered during tax fixation, gross profit is considered sector wise which is not reasonable, said its President Anwar-ul Alam Chowdhury (Parvez) while addressing at the organisation’s 36th annual general meeting (AGM) 2021-2022 at its board room on Tuesday.
Read more: 1.16cr citizens known to have taxable incomes, but majority don't file returns
Senior Vice-president Priti Chakraborty, Vice-President Shahidul Islam Niru, directors and many members were present in the meeting.
The BCI president said that for the crises of Corona and Ukraine War, about 40% of SMEs have dropped out because they are not resilient to survive.
“We have to come forward to protect them,” he said, adding with the increasing unemployment, lack of skilled labour is also increasing.
He also urged all to be economical in using electricity, gas and water etc.
He said to solve this problem BCI has signed an MoU with the SME foundation to create new entrepreneurs and small industries all over the country and solve their problems.
He said all are expecting and trying to bring the rate of poverty to zero by 2030 and the country will be transferred into a developed one by 2041.
Read more: 5th BMCCI LegalTalk seminar on tax law, foreign investment held
He urged all directors and members of BCI to take the challenges of 4IR and work together to face it.
He said the BCI has to work unitedly and being the sole and exclusive chamber it has to play an appropriate role to remove all sorts of obstacles and impediments for the development of local industries all over the countries.
BCI will continue its efforts to create new entrepreneurs, light engineering and agro based industries. The country is advancing despite the Corona and Ukraine crisis.
Taking part in the discussions some of the members focused on the development and promotion of micro, small, cottage and light engineering, agro based industry sector, one-stop service in industry sector and different issues of problems of financing.
1.16cr citizens known to have taxable incomes, but majority don't file returns
The National Board of Revenue (NBR) member (tax information) Mohammad Jahid Hasan said at least 1.16 crore people enjoy taxable income, but only a small proportion of them, roughly 1 in 4, submitted returns last year.
He said this at a workshop on “Customs, VAT and Income Tax management” organized by the Dhaka Chamber of Commerce and Industry (DCCI) as the chief guest on Saturday.
He also said that businessmen are the partners of NBR and the NBR is relentlessly working on reforms and modernization of various regulations to ease business.
Last year only 25.30 lakh people submitted their returns out of 83 lakh TIN holders which to Jahid is 'unsatisfactory'.
Read more: NBR extends income tax returns submission date to Dec 31
DCCI President Rizwan Rahman in his speech said that considering various needs, the government sometimes has to make a few changes in the finance bill, VAT, and Tax system through SROs, and as an entrepreneur, a businessman has to have a clear knowledge on these issues.
“We have seen a few changes like increasing cash transaction limit, mandatory return submission for 38 categories, central VAT registration system, 5 percent VAT exemption on locally produced chemical, VAT increase for importing computer accessories, TAX and VAT exemptions for safeguarding local businesses for the fiscal year 2022-23,” he informed.
The business community should have knowledge of these changes to maintain their books of accounts, he said.
Read more: Govt struggles to lift tax-GDP ratio to double digits
NBR extends income tax returns submission date to Dec 31
The National Board of Revenue (NBR) has extended the income tax returns submission date to December 31, considering application of trade bodies.
NBR Chairman Abu Hena Md. Rahmatul Muneem today officially announced the time extension while speaking at a seminar, on the occasion of National Income Tax Day 2022, held at the conference hall of Revenue Bhaban in Dhaka’s Segunbagicha.
READ: Tax lawyers seek 2 months more for filing income tax returns
Mohammad Muslim Chowdhury, Comptroller and Auditor General of Bangladesh, was present at the function as the chief guest.
The NBR chairman said that around 22 lakh income tax returns were submitted till November 29.
Many new taxpayers are willingly submitting returns this year and a good number of taxpayers sought time extension. Considering these, the time has been extended, he said.
READ: NBR counting losses for rampant tax evasion
He also said, submitting income tax returns is being simplified so that people can complete the process in a hassle-free environment.
Anyone with taxable income must submit returns, the NBR chairman said.
Read More: How to file your Tax Returns in Bangladesh
Filing of tax returns: November declared as service month
The National Board of Revenue (NBR) has announced November as the tax service month in a bid to facilitate the submission of tax returns for the year 2022-23.
Each of the income tax zones will provide services to taxpayers from November 1 to 30.
NBR Chairman Abu Hena Md Rahmatul Muneem made the announcement at a media briefing at the NBR office in Segunbagicha on Tuesday (November 01, 2022).
Read more: How to file your Tax Returns in Bangladesh
He said thirty-one tax zones with a total of 649 tax circles will receive income tax returns of their respective taxpayers until November 30 in a festive environment as part of the tax service month.
The website of each tax zone will contain various income tax-related forms, circulars, return filing guidelines, video tutorials, and other necessary information to help the taxpayers.
Under the management of Tax Zone-4, Dhaka, by setting up return acceptance booths and help desks at Bangladesh Secretariat and Officers Club Dhaka from November 1-14. The tax information will provide the same for five days on November 20-24 at the Planning Commission.
Read more: Tax return document not needed for loans up to Tk 20 lakh: NBR
For the Armed Forces, the tax zone would facilitate tax return submission and tax information services at Sena Malancha of Dhaka Cantonment on November 9-10.
An online income tax return filing system is also effective. Taxpayers can register in the system, can prepare returns, and submit. Taxpayers can file returns online by taking advice about e-return through hotline number 09612717171, said NBR.
New taxpayers can register, and existing taxpayers can re-register subject to providing the necessary information at the registration booth.
Read More: NBR counting losses for rampant tax evasion
Implementation of the e-TDS system is ongoing in all taxing jurisdictional authorities at the source. Taxpayers will be given Income Tax Returns, TIN applications, and Challan forms.
Taxpayers in Bangladesh can pay income tax online through e-payment.
In the last fiscal year, only 27 percent of taxpayers filed their yearly tax returns within the deadline of 30 November, which was extended by another month by the NBR.
Read More: Dhaka North residents can get 10% rebate on holding tax, arrears
According to NBR data, it received Tk2456 crore income tax from tax returns of 18.55 lakh individuals, which is over 6 percent year-on-year rise from last year's 17.48 lakh.
e-TIN: Online registration process in Bangladesh
As part of the digitalization plan in Bangladesh, the traditional TIN certificate was updated and converted into e-TIN Certificate in 2013. The term ‘TIN certificate’ is familiar to almost everyone, including regular taxpayers in Bangladesh. Citizens of Bangladesh need TIN certificates and TIN numbers to start businesses, get tax rebates and more. Let’s take a look at how to register for an e-TIN certificate online in Bangladesh.
Who can get a TIN certificate in Bangladesh?
As per National Board of Revenue rules, if you earn around BDT 16,000 per month, you must have TIN. Apart from this, unemployed persons, including homemakers, can get TIN if needed. If you have something that requires a TIN, such as car ownership or membership in an organization, you must have a TIN certificate even if you have no taxable income.
However, men do not have to pay tax if their income does not exceed BDT 2,50,000 per year. For women of all ages and all citizens above 65 years of age that income limit is BDT 3,50,000. Citizens with disabilities do not have to pay tax if their income does not exceed BDT 4,25,000 per year. If your income is below the tax limit, you have to submit a zero return showing TIN.
Read Smart NID Card in Bangladesh: Online Application Process, Documents Needed, Fees
Benefits or uses of the e-TIN certificate
The first benefit of having a TIN is that you will be registered as a taxpayer. Then pay taxes up to your income limit, with which the government will run the country. Long ago, when things like income tax or value-added tax did not exist, the government used to collect tax from the land. But now, due to the diversity of people’s income, the government has to collect money to run the country through income tax.
By collecting an e-TIN number, you will be a proud taxpayer. If you have a TIN registration number, the bank will deduct a 10% tax from your savings. If not, then 15% will be deducted. Suppose you get a gift or prize money from somewhere, which is given to you through the bank, even, in that case, TIN holders will get a 10% tax deduction, and for those who do not have TIN, 15% will be deducted.
Although an e-TIN certificate is not required to open a bank account, if you take a bank loan, TIN is needed. The government provides different benefits and incentives to different professionals or small entrepreneurs at different times, none of which are available without TIN.
Read Bangladesh Smart National ID Card Correction Process
How to get an e-TIN certificate online in Bangladesh?
To get a TIN certificate, first go to this link: https://www.incometax.gov.bd/Registration/ and provide all the necessary information in the boxes. You will need to provide a user id, password, security question, answer, mobile number, and email address. After that, provide a captcha and click on verify button. NBR will send an SMS with a code to the given mobile number.
Now you have to type the code on the e-TIN activation page and click on the Activate button. Then on the next page, click on TIN registration/re-registration. A new page will appear. Here you have to provide all the important information and proceed by clicking the next button.
In the Taxpayer Type section, select Individual/Expatriate/Company – whichever is applicable. Those who didn’t have a teen certificate earlier will select new registration, and for those who had, there will be a re-registration option.
Read How to Get E-Passport in Bangladesh: Things you need to know
Then enter the old TIN number and proceed to the next page. Now enter all the information about the taxpayer’s income, such as occupation, source of income, and place, and go to the next page.
After that, all the personal details like name, address, national identity card number, VAT registration number (if any), etc., need to provide correctly and confirmed. The e-TIN will be ready in no time.
All the information, including photos, will automatically be verified using the national identity card number. The prepared TIN certificate can be printed immediately. Or it can be saved as a PDF, which can be printed later. So, you just got your TIN certificate. You don’t need to pay any penny to complete the whole process.
Read E-Passport for Children in Bangladesh: Application process and necessary documents
How to recover an e-TIN ID?
If your TIN certificate is lost, you can recover it online using your user ID and password. Since we log in to the portal once in a while, it is normal that you may have forgotten your ID and password too. Don’t worry; you can recover those too.
To recover your user ID or password, go to https://www.incometax.gov.bd/TIN Home and click on Forgot Password. Next, select Forgot My User Name and Forgot My Password. On the next page, you will need to provide the mobile number you used to register the TIN certificate. After that, you will be asked the security question you used during the registration. If your answer is correct, you will get a 4-digit code on your mobile via SMS. Put the code and verify your mobile number.
In the next step, enter the 4-digit code received on the mobile and re-enter your mobile number and submit. You will see the user ID of your TIN account as soon as you submit it.
To recover the password, click on Forgot Password menu again and select the Forgot My Password option and click on the Next button. Enter the User ID found in the previous step and put the Verification Letters, and click Next.
You will receive 4-digit verification to your mobile via SMS. Enter the verification code and click Recover My Account. Next, you will see a page to change the password. Enter a new password here with at least 4 Letters/Numbers.
In many cases, some people do the TIN registration through someone else. Because of this, they might have registered TIN with their mobile number. In this case, you can contact that person and take his help. Moreover, you can call the helpline of NBR and inform them about your problem and know the username of the e-TIN website. NBR Helpline: 09611-777111 or 333.
Read Birth Registration in Bangladesh: Application Process, essential papers
If this is also not possible, contact the tax office with a photocopy of your TIN number, if known, and one copy of your National Identity Card.
Final Words
Whether you are an employee, businessman, or professional, a TIN certificate is a must for you. However, many people are yet to get familiar with obtaining a TIN certificate online and think it is a complicated process.
Getting a TIN certificate is a very simple task. No need to go to any office for this. You can just go to the NBR website and fill in the necessary information, such as your mobile number and national identity card, and you can get the e-TIN number at home. So far, this article provides detailed guidelines for getting an e-TIN certificate online in Bangladesh. Hope it helps!
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Dhaka North residents can get 10% rebate on holding tax, arrears
Dhaka North City Corporation (DNCC) has declared a 10 percent rebate on holding tax, including arrears, for holding owners and businesses on four instalments for the 2022-23 fiscal, if they pay online.
Besides, the deadline for renewal of trade license without surcharge has been extended till November 30.
Read: Separate sewage lines from water bodies within March: DNCC
The DNCC took the initiative as part of the digitalization of all their activities including revenue collection, said a press release signed by DNCC Public Relations Officer Mokbul Hossain on Friday.
DNCC residents will be able to pay holding tax, fees for new trade license or renewal of trade license, and other services digitally once the shift is complete.