The National Board of Revenue (NBR) will receive the tax of export-import oriented trade through e-payment system from July 1 this year if the amount is above Tk 2 lakh.
The organisation will put in place an automation system for ensuring transparency in the tax collection.
“Tax over Tk 2 lakh will be collected through electronic payment system from July 1. We’ll complete automation to ensure transparency in tax realisation,” NBR Chairman Abu Hena Md Rahmatul Muneem said at a programme at its office on Tuesday.
At the event, NBR awarded the World Customs Organization (WCO) Certificate of Merit marking the International Customs Day to three organisations and 17 officials for playing roles in the country’s import-export oriented trade and internal supply chain during the COVID-19 pandemic.\
The three companies are Bangladesh Medical Association, Customs House, Chattogram and Customs House, Dhaka. On the other hand, seven persons died of COVID-19 among the 17 awardee officials of NBR and under its department.
“We’ll purchase 13 scanners to ensure transparency that will provide quick delivery in import-expert process,” the NBR chairman said.
He said that they need the cooperation of business organisations. The software has been prepared. The system will be compulsory at Dhaka Inland Container Depot (ICD) Customs House in Kamalapur from April 1.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Sheikh Fazle Fahim urged the NBR to widen tax net instead of tax rate.
Also Read: NBR sets its sight on cranking up tax-GDP ratio
Finance Minister AHM Mustafa Kamal hoped that the revenue collection will go up gradually if business friendly policies are taken.
“Bangladesh recorded the highest GDP growth in the world in the last 10 years. NBR will succeed in revenue collection like previous years taking on challenges,” he said.
Also Read: Will automate tax system within 2019: NBR chief
The minister said NBR has to fulfill the demand of businesses. So, they will meet NBR’s demand. The government will purchase 13 scanners to ensure transparency in import-export activities within a short time, he added.
Planning Minister MA Mannan on Tuesday said the government would extend all forms of logistical support to make the private sector vibrant.
“We need to step ahead to ensure more private sector engagement in public-private partnership for coordinated development in the country,” he said while Business Initiative Leading Development (BUILD) Chairperson Abul Kasem Khan paid a courtesy call on him.
MA Mannan also stressed the importance of enabling business environment in Bangladesh and appreciated the formation of the Logistics and Infrastructure Working Committee of BUILD. The organisation already has a well-functioning public-private dialogue (PPD) model.
He urged BUILD to contribute independently for policy making process of the government.
BUILD Chairperson Khan said the partnership is vital for Public Policy Support for the private sector.
“The pandemic has posed unprecedented challenges to the entire global economy, which continues to exert downward economic pressures on the countries across the world. With timely action, the government not only delivered economic relief to many but also injected confidence into businesses and the economy,” he said.
Further initiatives to address employment and revive domestic demand would be critical to set the economy back on a robust growth pathway. Otherwise the target of the Perspective Plan for manufacturing growth may be difficult to achieve, he added.
Khan urged the government to intensify South-South cooperation, especially through regional agreements and create new avenues for markets for global trade expansion.
He requested the government to reduce the supply divide and accelerate development of regional value chains as key policy stepping-stones for a better post-COVID recovery process.
Declaring 2021-2031 as the infrastructure decade for accelerated development of Bangladesh, he suggested devising a National Logistic Infrastructure Master Plan (NLIMP) which should be adopted to improve the national logistics and infrastructure system.
“The special economic zones (SEZ) must be utilised in a strategic manner to ensure broad and sustainable results for the national economy. As economic frontiers, the SEZs should link up with local businesses in the vicinity and act as growth centres. The broad-based growth enabled by SEZs would facilitate revenue collection, job creation and the industrialisation of Bangladesh,” he added.
CEO of BUILD Ferdaus Ara Begum informed about one of the on-going activities of their organisation and International Trade Centre (ITC)-She Trade Program in collaboration with Central Procurement Technical Unit (CPTU) for designing a public procurement road map more gender responsive.
A meeting of the Sharia Supervisory Committee of Islami Bank Bangladesh Limited (IBBL) was held at virtual Platform on Sunday.
Professor Dr Mohammad Gias Uddin Talukder, Chairman of the Committee presided over the meeting.
Mohammed Monirul Moula, Managing Director and CEO of the bank, Professor Dr Mohammad Abdus Samad, Member Secretary also attended the meeting among others.
Global shares mostly rose Monday amid hopes economies slammed by the pandemic will bounce back, as attention turned to upcoming company earnings.
France’s CAC 40 slipped 0.2% in early trading to 5,551.47. Germany’s DAX inched up nearly 0.1% to 13,886.27. Britain’s FTSE 100 added nearly 0.1% to 6,700.34. U.S. shares were set for modest gains, with Dow futures up nearly 0.2% at 30,962. S&P 500 futures were trading at 3,847.88, up 0.4%.
Japan’s benchmark Nikkei 225 gained 0.7% to finish at 28,822.29. Australia’s S&P/ASX200 added 0.4% to 6,824.70. South Korea’s Kospi gained 2.2% to 3,208.99. Hong Kong’s Hang Seng jumped 2.4% to 30,159.01, while the Shanghai Composite rose 0.5% to 3,624.24.
Hopes are high that once the pandemic comes under some control, regional economies will make strong recoveries, with lockdowns easing and vaccines rollouts starting in various places, including Singapore.
“Vaccine breakthroughs make it likely that life will become more functional again at some point in 2021, resulting in higher GDP growth and more robust corporate earnings,” Stephen Innes, chief global markets strategist at Axi, said in a report.
“But increasing global COVID19 infections, new variants of the virus, tightening social distancing restrictions and delays in vaccine rollouts in some places, all increase the near-term growth risks,” he said.
Markets have been mostly rallying recently on hopes that COVID-19 vaccines will lead to a powerful economic recovery later this year as daily life gets closer to normal. Hopes are also high that Washington will deliver another dose of stimulus for the economy now that the White House and both houses of Congress are under single control of the Democrats.
President Joe Biden has proposed a $1.9 trillion plan to send $1,400 to most Americans and deliver other support for the economy. But his party holds only the slimmest possible majority in the Senate, raising doubts about how much can be approved. Several Republicans have already voiced opposition to parts of the plan.
The coronavirus pandemic is also worsening and doing more damage to the economy by the day.
In China, where the pandemic began in late 2019, the government has reimposed travel controls after outbreaks in Beijing and other cities. A spike in infections has authorities calling on the public to avoid travel during February’s Lunar New Year holiday, normally the year’s most important family event.
Massive support from central banks is providing a major underpinning for the markets. The Federal Reserve and others are holding short-term interest rates at record lows, among other measures to support economies until the pandemic can be brought under control.
Also Read: Global economy to shrink by 3.2pc: UN report
In other trading, benchmark U.S. crude rose 34 cents to $52.61 a barrel in electronic trading on the New York Mercantile Exchange. It lost 86 cents to $52.27 per barrel on Friday. Brent crude, the international standard edged up 30 cents to $55.71 a barrel.
The U.S. dollar fell to 103.74 Japanese yen from 103.83 yen late Friday. The euro cost $1.2175, up from $1.2169.
Global foreign direct investment collapsed in 2020, falling by 42% to an estimated $859 billion from $1.5 trillion in 2019.
The FDI finished 2020 more than 30% below the trough after the global financial crisis in 2009 and back at a level last seen in the 1990s.
UNCTAD published its 38th Global Investment Trends Monitor on Monday.
The decline was concentrated in developed countries, where FDI flows fell by 69% to an estimated $229 billion.
Flows to Europe dried up completely to -4 billion, including large negative flows in several countries.
A sharp decrease was also recorded in the United States (-49%) to $134 billion.
The decline in developing economies was relatively measured at -12% to an estimated $616 billion.
The share of developing economies in global FDI reached 72% – the highest share on record.
China topped the ranking of the largest FDI recipients.
The fall in FDI flows across developing regions was uneven, with -37% in Latin America and the Caribbean, -18% in Africa and -4% in developing countries in Asia. East Asia was the largest host region, accounting for one-third of global FDI in 2020. FDI to transition economies declined by 77% to $13 billion.
Trends in selected economies
FDI in China, where the early phase of the pandemic caused steep drops in capital expenditures, ended the year with a small increase (+4%).
FDI in India rose by 13%, boosted by investments in the digital sector.
FDI in ASEAN – an engine of FDI growth throughout the last decade – was down 31%.
The halving of FDI inflows to the United States was due to sharp drops in both greenfield investment and cross-border mergers and acquisitions (M&As).
FDI in the EU fell by two thirds, with major declines in all the largest recipients; flows to the United Kingdom fell to zero.
FDI trend expected to remain weak in 2021
Looking ahead, the FDI trend is expected to remain weak in 2021.
Data on an announcement basis, an indicator of forward trends, provides a mixed picture and point at continued downward pressure:
Sharply lower greenfield project announcements (-35% in 2020) suggest a turnaround in industrial sectors is not yet in sight.
Upticks in the fourth quarter of 2020 dampened earlier declines in newly announced international project finance deals (-2% for the full year).
Also Read: FDI flows to developing economies decreased by 16pc: Unctad
International investment in infrastructure sectors could thus prove stronger, also buoyed by economic support packages in developed countries.
Similarly, the 2020 decline in cross-border M&As (-10%) was cushioned by higher values in the last part of the year. Looking at M&A announcements, strong deal activity in technology and pharmaceutical industries is expected to push M&A-driven FDI flows higher.
For developing countries, the trends in greenfield and project finance announcements are a major concern.
Although overall FDI flows in developing economies appear relatively resilient, greenfield announcements fell by 46% (-63% in Africa; -51% in Latin America and the Caribbean, and -38% in Asia) and international project finance by 7% (-40% in Africa).
Also Read: UNCTAD projects 7-9 pc year-on-year drop in 2020 global trade
These investment types are crucial for productive capacity and infrastructure development and thus for sustainable recovery prospects.
Risks related to the latest wave of the pandemic, the pace of the roll-out of vaccination programmes and economic support packages, fragile macroeconomic situations in major emerging markets, and uncertainty about the global policy environment for investment will all continue to affect FDI in 2021.