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Business disputes stall govt move to open pre-paid gas meters market to consumers
It has been about a year since the government allowed open market purchase of pre-paid gas meters to expedite the process of installing the system for customers’ benefit.
So far, no public or private company has shown any interested in doing the business.
A wrangling between gas distribution companies and meter manufacturers/importers are holding back the implementation of otherwise welcome move by the government, according to some people familiar with the process.
Speaking on condition of anonymity some insiders in the utility service alleged that the Titas Gas company, the largest of the distributors, has monopolized the data accumulation system where meters from other companies are not synchronized.
Read: Discovery at Koilashtila: 17-19 MMCFD gas from May 10
As a result, a certain Japanese company has been getting an extra privilege to supply its meters, they alleged.
This has made the implementation of the government’s plan to introduce pre-paid gas meters for all consumers unlikely to be implemented any time soon, the industry insiders observed.
According to a study conducted by the Bangladesh Institute of Development Studies (BIDS), there are about 4.15 million consumers in the domestic category in the country.
The number breaks up as: Titas Gas 2.78 million, Bakhrabad Gas 0.491 million, Jalalabad Gas 0.417 million, Poschimanchol Gas 0.128 million, Karnaphuli Gas 0.65 million and Sundarban Gas 0.0035 million.
However, the latest figure released by the Titas Gas shows it has more than 2.8 million household consumers.
There is a big allegation that the non-metered household gas consumers are being heavily discriminated against in paying their bills against their consumption of natural gas mainly for cooking purposes.
The latest study by Bangladesh Energy Regulatory Commission (BERC) shows that a pre-paid metered consumer uses 40-50 cubic meter of gas and pays around Tk 500-630 a month while a non-meter consumer has to pay almost double at Tk 975 for the same quantity of consumption.
Income Tax Wing of NBR racing to meet target in last 4 months of fiscal
The National Board of Revenue (NBR) has taken a tougher move to increase its collection from the Income Tax Wing by expanding its net and realising outstanding taxes, as in the first eight months of the current fiscal it collected just over 50 percent of its target for the fiscal.
The revenue collection target from the Income Tax Wing for the 2020-21 fiscal is Tk 103,945.10 crore. But, according to available data from the NBR, till February of this year the wing has been able to collect only Tk 52,854.37 crore. It means the rest, an almost equal amount of Tk 51,090.7 crore, has to be collected in just 4 months.
In February, the 8th month of the fiscal, the NBR collected Tk 6,446.87 crore, almost 10 percent more than the corresponding month in 2021, when it collected Tk 5882.03.
The collection in the first 8 months of the current fiscal, is 13.3 percent higher than what it was in the first 8 months of the last fiscal.
According to the NBR sources, the Board has directed the tax commissioners to bring all eligible persons and organisations under the tax net and to take initiatives to remove the phobia regarding hassle in tax payment.
It also asked to intensify the tax survey and activate the inactive TIN numbers as submitting income tax return has been made mandatory for every TIN holder from this fiscal.
The Income Tax Wing of the NBR has already given necessary directives to the field offices in these regards.
As a part of the internal survey, the field level officials are collecting possible taxpayers information from city corporations, Rajuk and similar organisations, and sub-registrar offices. This is popularly called ‘secondary data’. Secondary data refers to the information of the individuals that are already kept in any organisations.
READ: NBR to speed up this fiscal's VAT collection
The NBR has also started to collect information of the potential taxpayers at the upazila level through secondary data gathering, otherwise known as internal survey.
For example, a file of ‘X’ company mentions that it has 450 employees. The concerned official can ask for the names of the 450 employees and their TIN numbers.
With this little move the NBR can find out the eligible taxpayers’ names and bring them under the tax net, if they are not already.
“This is called an internal survey,” a senior NBR official explained to UNB.
In this connection, he said that at first the NBR is taking information of the trade licences that have been issued by the city corporations and municipalities.
Later, TIN will be issued in their names to bring them under tax net and collect revenue from them.
Besides, he mentioned that the NBR is taking information on foreigners from Bangladesh Investment Development Authority (BIDA), vehicle owners from the BRTA, and land buying and selling information from the sub-registry offices, power distribution offices and service oriented offices.
Information of the flat and house owners are also being taken from the National Housing Authority, the NBR official said.
All these efforts would help NBR identify the eligible taxpayers who are still staying out of the tax net.
"We hope that by this we will be able to net the affluent section of society who are evading tax," he added.
According to the NBR sources, the NBR officials generally collect information of the potential taxpayers by door-to-door survey. A senior official of the NBR said that field officials have been asked to conduct their survey maintaining health safety issues.
The total revenue target for the NBR for fiscal 2021-22 has been set at Tk 330,078 crore.
Of the total target the VAT wing will contribute the lion's share with Tk 127,745 crore.
The target for Income Tax and Tax on Profit has been set Tk 104, 952 crore. The Income Tax Wing will contribute Tk 103945.10 crore.
The revenue collection from import duty will be Tk 37, 807.18 crore, Tk 55,225.26 crore from from Supplementary Duty, Tk 55.45 crore from export duty, Tk 3685.69 crore from Excise Duty, Tk 1529.90 crore from travel tac while Tk 1050 crore from other taxes and duties.
Kishoreganj haor farmers not getting fair price for paddy
The paddy farmers of haor upazilas Austagram, Itna, Mithamoin, and Nikli of Kishoreganj district are not getting a fair price of paddy in Chamraghat, Bhairab, and Ashuganj wholesale markets in this Boro paddy harvesting season.
As a result, paddy farmers have been counting Tk 150-250 loss per maund of paddy which will push them into financial trouble.
Haor farmers have already faced two flash floods triggered by incessant downpours and onrush of water from upstream areas in India’s eastern zone. Farmers in the haor areas continue to harvest half-ripe paddy fearing more flash floods instructed by the administration, local lawmakers, and the Department of Agricultural Extension to cut further loss.
As farmers are harvesting half-ripe paddy, they are unable to utilize it fully. This is a huge loss for them. Moreover, the Boro labour crisis has increased the losses as farmers are counting on extra money to get the necessary number of labourers to harvest Boro crops.
This time, the unfair price of paddy has turned the haor farmers unhappy. They are now lamenting and passing days thinking about how they will repay their loans from local lenders.
READ: 90% of haor paddy harvested: Deputy Minister
Boro farmers of haor areas have expressed their resentment about the unfair paddy price. Their disappointment comes when farmers go to the wholesale market to sell BRRI dhan 28 (a Boro paddy variety which ripens early).
Visiting the Chamraghat rice market, the UNB correspondent found farmers from haor areas bringing paddy here by river routes. Rice mill owners buy paddy directly from farmers at this spot.
Farmers said they have been counting huge losses as they are not getting a fair price this year. Mill owners are buying maximum paddy at a low price produced in the haor areas.
The production cost per maund of coarse paddy, including the labour cost, is near Tk 900 while its selling price is only Tk 650 to Tk 750, while plain paddy is being sold at Tk 750 to Tk 850 against the production cost near Tk 1000.
Karim Mia, a farmer of Dhanpur of Itna upazila, said he has expended more than Tk 1,000 to grow one maund paddy. But he is not getting a fair price in the local market which has forced him to sell paddies at lower prices counting huge losses.
Farmer Amin Mia, who has come to sell paddy in Bhairab Bazar wholesale market from Austagram upazila, said most of the farmers in Austagram cultivated Boro croplands by taking lease from the land owners. Many of them have also borrowed money from local creditors. As farmers are not getting a fair price for paddy this year, it will be a tough task for them to maintain their livelihood after paying debts.
He also urged the government to procure paddy at a fair price directly from the farmers.
Ujjal Saha, agriculture officer of Itna upazila said, “Most of the farmers of the haor areas are ultra-poor. They are bound to sell paddy in early Baishakh to pay the borrowed money. Money-lenders put huge pressure on them in Baishakh. If they sell paddies a few days later, they will get a good price.”
Bangladesh needs to boost climate diplomacy: Experts
Though Bangladesh is one of the worst victims of climate change with almost no contribution to the cause, experts have bemoaned that the wealthier nations--who have historically contributed the most to the depletion of the ozone layer--are doing very little to help the country overcome this problem.
They said Bangladesh should boost its climate diplomacy to make tackling climate change an important issue of bilateral discussions with developed countries and thus encourage them to fulfill their pledges made in the Paris Agreement.
“Bangladesh is one of the worst victims of extreme weather caused by climate change for a long time. Climate change is a global issue that needs a global solution through collective efforts,” Dr Ainun Nishat, a noted climate expert, told UNB.
Also read: Small solutions, big impacts: How five community-based projects tackling climate
He said they have long been highlighting the issue of climate finance for reducing the climate change impacts, but only pledges have been made so far instead of allocating sufficient funds globally.
“Bangladesh and other vulnerable countries should play an active role in different forums and international conferences on climate change in encouraging the developed countries to deliver on their commitments to support the badly affected countries to face the devastating impacts like flash floods, droughts, heat waves, storms, cyclones, and rising sea levels,” the expert said.
“Our country has been experiencing frequent natural disasters like floods, cyclones, increasing incidents of lightning strikes and landslides triggered by global warming, causing huge losses to human lives and natural resources,” Dr Nishat observed.
Bangladesh was the seventh most-affected country in the world by “extreme weather events” over the 20 years, according to a report by Global Climate Risk Index 2019.
Renowned environmental expert Dr Atiq Rahman, who was recognised by the UN as one of the Champions of the Earth in 2008, Bangladesh is not only facing the loss of lives and resources due to the adverse impacts of the climate change, but also facing a threat to food security due to an abnormal shift in its traditional six seasons.
Also read: Dhaka calls for more IOM role in helping climate migrants
He said farmers in Bangladesh are going through serious difficulties with the cultivation of various crops due to changes in temperature, wind-flow and rainfall patterns. “For an example, farmers face problems in the process of ‘retting’ the jute plants for lack of rainwater. At the same time, the farmers cannot plant their paddy timely during the monsoon period for lack of adequate rainfall.”
Besides Dr Rahman, executive director of the Bangladesh Centre for Advanced Studies, said winter in Bangladesh is getting less biting, but foggier, hampering the crop production.
Dr Ainun Nishat also the impacts of climate change will continue to affect the country‘s agriculture sector in many ways. “The agricultural calendar that has long been followed by the farmers of the country is changing erratically due to rise in temperature and variations in wind-flow and rainfall patterns which is eventually harming the food chain.
Besides, he said crop production is also being hampered due to flash floods and droughts caused by growing temperature.
Citing different local and international studies, the expert said around 30 million people are “predicted to be at risk” of sea-level rise in Bangladesh by 2050 while the annual rise in sea level in the country ranges between 6mm and 20mm.
He said the rise in sea level is contributing to increasing salinity and climate-induced migration in the coastal areas. “People in some coastal districts are being forced to migrate to different districts due to an increase in salinity.
According to a World Bank study, climate change will cause significant changes in river salinity in the southwest coastal region during the dry season (October to May) by 2050, and will likely lead to shortages of drinking and irrigation water and cause changes in aquatic ecosystems.
Under the circumstances, Both Dr Nishat and Dr Rahman said Bangladesh should focus on climate diplomacy to mount pressure on the industrialised countries to compensate for the losses and damages the country is facing due to climate change and ensure sufficient financing for adaptation and resilience building.
NBR to speed up this fiscal's VAT collection
The National Board of Revenue (NBR) has asked its field offices to expedite the Value Added Tax (VAT) collection as the collection from the pocket is only 56.15 per cent in the first eight months of the current fiscal.
In this connection, the revenue collecting authority asked for attaining the target of the revenue collection keeping the present condition in mind and to put emphasis on establishing intensive communication with the big companies.
The NBR data shows that total revenue collection from VAT wing fixed in the budget for 2021-22 fiscal was Tk 127747.58 crore whereas the collection till February 2022 is Tk 71,736.88 crore, which is only 56.15 per cent.
The target for VAT collection from import level was Tk 45,554.76 crore. But till February of this year the NBR has been able to collect Tk 28,403.60 crore where in the month of February the collection was 4061.67 crore.
The collection till February 2021 was Tk 22,709.32 crore while the collection in the month of February 2021 was Tk 3050.02 crore.
It means the growth in month to month basis is 33.17 per cent while it is 25.07 per cent considering the collection of the first eight months of the two fiscals.
On the other hand, target for VAT collection from local level was Tk 82192.82 crore. But till February of this year the NBR has been able to collect Tk 43333.28 crore where in the month of February the collection was Tk 5615.67 crore.
The collection till February 2021 was Tk 38,734.97 crore while the collection in the month of February 2021 was Tk 5312.55 crore.
It shows that the growth in month to month basis is 5.71 per cent only while growth is 11.87 per cent considering the collection of the first eight months of the two fiscals.
A senior official of the NBR said that in the present situation of the world or the country during the pandemic is not very conducive for revenue collection with sizeable growth.
READ: NBR announces tax exemption for donation to third gender
“We are all aware about the present situation, this might improves as the world and the country as well are coming out from the shadow of the pandemic situation gradually. Whatever it is, we have to step forward with necessary actions to attain the target,’ he said.
He mentioned that good communications with large companies that usually give significant amount of VAT would be a better tool for enhanced revenue collections.
He said that officials would have to depend on the items like cigarettes, mobile, bank, Bkash, internet and medicine, which pay higher revenue to the national exchequer.
Besides, the NBR official said that special attention needs to be given on collecting advance VAT and outstanding revenues from various business entities.
The revenue target for the NBR for fiscal 2021-22 has been set at Tk 330,078 crore.
Of the total target the VAT wing will contribute the lion share with Tk 127,745 crore. The target for Income Tax and Tax on Profit has been set Tk 104, 952 crore.
The revenue collection from import duty will be Tk 37, 807.18 crore, Tk 55,225.26 crore from from Supplementary Duty, Tk 55.45 crore from export duty, Tk 3685.69 crore from Excise Duty, Tk 1529.90 crore from travel tac while Tk 1050 crore from other taxes and duties.
Sovereign debt set to edge upwards in coming years
The government's debt, that is the country's sovereign debt, is projected to reach Tk 16,306.5 billion in the next 2022-23 fiscal, before growing to Tk 18,732.30 billion in 2023-24.
According to an official document, the sovereign debt is Tk 13,919.5 billion for the running 2021-22 fiscal.
In the 2023-24 fiscal, the government will get Tk 11568 billion from domestic sources while Tk 7164.30 billion from external sources.
In the 2022-23 fiscal, the government will get Tk 10021.70 billion from domestic sources while Tk 6284.80 billion from external sources.
In the running 2021-22 fiscal, the target was Tk 8674 billion from the domestic sources while Tk 5272.50 billion from external sources.
Also read: Bangladesh’s foreign debt far below risk limit: Economic review tells PM
In the 2020-21 fiscal’s revised budget, the debt was Tk 12037.70 billion with Tk 7489.20 billion domestic debt and Tk 4548.5 billion external.
The government's debt in 2019-20 fiscal was Tk 10062 billion where the domestic debt was Tk 6313.7 billion and external was Tk 3748.30 billion.
The document said that the government debt has been projected to edge up in the medium term in line with the pace of economic recovery.
Outstanding debt is projected to increase by 1.3 percentage point of GDP to Tk. 13.9 trillion (Domestic vs. external ratio 1.6:1) at the end
of fiscal 2021-22 from the revised target of fiscal 2020-21, as additional budget will be required for the health sector, including the cost of carrying out the
vaccination program and implementing the declared stimulus packages.
Government debt has been projected to rise in the subsequent years as the economic recovery path might be slow due to the advent of new variants of the COVID-19.
Also read: No chance of Chinese debt trap: FM
The government debt has been projected to 42.9 percent of GDP at the end of fiscal 2023-24 where domestic debt is 26.5 percent of GDP and external debt is 16.4 percent of GDP.
The projection is 42.1 percent of GDP at the end of fiscal 2022-23 where domestic debt is 25.8 percent of GDP and external debt is 16.2 percent of GDP.
The official document mentioned that additional government spending for implementing the declared fiscal stimulus package to foster economic recovery from the pandemic as well as weaker than expected revenue collection have been pushing up the government debt level slightly.
Considering the present trend in the revenue collection and the resulting fiscal deficit, total debt stock is projected to increase by 2.2 percentage point of GDP to Tk. 12.0 trillion in the revised budget from the original budget in FY21 where both domestic debt and external debt level rises by 1.1 percentage point.
As per the document, high GDP growth, stringent fiscal discipline, low interest cost that resulted from optimum borrowing mix, and stable exchange rate have contributed in stabilising government debt over the decade (fiscal 2010-11 to fiscal 2019-20).
Government's outstanding debt hovered around 35-36 percent of GDP during the decade.
It actually declined until fiscal 2017-18, but then the trend was reversed and the debt stood at 36.0 percent of GDP at the end of FY20.
Composition of the debt stock has changed as well in the last ten years.
Domestic debt increased gradually to 22.6 percent of GDP at the end of fiscal 2019-20 from 16.7 percent of GDP at the end of discal 2010-11.
External debt has declined gradually to 13.4 percent of GDP at the end of fiscal 2019-20 from 18.3 percent of GDP at the end of fiscal 2010-11.
Commuters suffer in city as local buses carrying holidaymakers
City dwellers on Saturday faced a serious transport crisis for the lack of local buses, as most were converted to inter-district services carrying homebound people ahead of Eid-ul-Fitr.
The number of local buses plying the city streets was very thin since the morning, leaving many commuters to suffer long waits for transportation and forcing many of them to reach their destination on foot.
Especially, the office goers were the worst victim to join their office and return home since the banks and some private offices remained open on Saturday.
Taking the advantage of the sudden transport shortage in the city, passengers alleged that the bus operators, rickshaw pullers and the CNG auto-rickshaw drivers were charging excessive fares.
A leader of the Dhaka Road Transport Owners' Association said the number of buses was decreased in the capital as maximum city buses started carrying home-bound people, especially the garments workers towards northern and other districts from Thursday night.
Also read: 15km tailback on west of Bangabandhu Bridge amid Eid rush
“Many of the buses that run in Dhaka went to the different districts carrying the homebound people to make some ‘extra trips,'" he said.
The city dwellers who were waiting to travel the city smoothly in absence of traffic gridlock on the occasion of eid as in the past have got frustrated due to the shortage of transport.
“Usually, the city becomes commuter-friendly with fewer traffic jams a couple of days before eid amid the mass exodus of holidaymakers. But I have become disappointed as I have to wait 40 minutes to catch a bus for coming to Mouchak from Badda area,” Shafiqul Islam, a private job holder, told UNB.
Abdus Salam, an official of a private bank, living in the Basabo area, went to his bank branch office in Gulshan-2 by a rickshaw due to the shortage of bus services in the city.
“After waiting for around 35 minutes to get a bus, I hired a rickshaw with exorbitant fare to go to the office in Gulshan-2. Reaching the office, I saw an overloaded bus was coming from my area.”
Anis Ahmed, who works for an NGO, waited for an hour at Mirpur-11 bus stand to catch a Motijheel bound bus at around 3:30 pm.
Later, he rented a CNG-run auto-rickshaw to reach his destination. "The CNG driver charged an excessive fare, but I had to hire it having failed to get a bus of 'Bikolpa Auto Paribahan.”
Omar Sharif, an official of a private company, said that he failed to get a bus at the Mohakhali bus stand after waiting for 30 minutes to come to Moghbazar. “Finally, I had to reach my destination on foot.”
"Not only me, but also many other city dwellers went through serious sufferings due to transport crisis. It took more than two hours for one of my friends to come to Gulshan by riding a rickshaw and then bus from the Airport area though there was no notable tailback on the road.”
Also read: Barishal ferry terminal brim with Eid rush
Ashrafuzzaman, an official of Alif Paribahan, said they usually operate 250 buses in the city and its outskirt. “But two-third of our total buses left the city on Friday for different districts, especially for the northern region, carrying garments workers. These buses will return when those people return to Dhaka after enjoying the Eid vacation.”
Similarly, buses of many other transport operators have also been carrying long-route passengers to meet the huge transport demand of home-bound people. “That’s why, the commuters in the capital are facing an adequate transport crisis,” he said.
The Eid vacation will begin on May one (Sunday) but most of the holidaymakers have already left the city. Homebound journeys are comparatively smooth this year than the recent years.
Solution to pollution: Sprinkling water on Dhaka's roads & construction sites?
Summer or winter, air pollution trends across the seasons in Dhaka. And this year-round air pollution is largely attributed to the same emissions -- construction and road dust.
Construction dust is basically silica dust prevalent at construction sites and is often held responsible for health conditions like asthma. Leftover construction waste also adds dust to air.
Road dust, on the other hand, is loose soil on broken or unpaved roads, and includes vehicular emissions to an extent.
Experts, however, claim to have a quick fix solution for Dhaka's air pollution that peaks during winter and prevails in summer too -- sprinkling water on all construction sites, public or private, and roads to settle dust.
MA Matin, former general secretary of Bangladesh Poribesh Andolon (BAPA), told UNB that air pollution is increasing day by day in Dhaka due to the absence of an effective control mechanism.
“Dust and sand particles cause air pollution but the city's two civic bodies have to take concrete steps to control the same. The pollution has hazardous health implications that can cause death directly or indirectly."
Professor Dr Najmul Islam, director of the Disease Control Department of the Health Directorate, echoed similar voice.
Read: Dhaka’s air still ‘very unhealthy’
“Pollutants are getting mixed with foods and triggering serious health issues -- from asthma to lung disease and kidney failure. It's high time that the pollution was curbed," he said.
Bangladesh Environment, Forest and Climate Change Minister Md Shahab Uddin urged all agencies concerned to act in a coordinated manner to control pollution.
“Time and again, we have set up several camps in Dhaka and other big cities to determine the air quality level. However, it did not work and we now need coordinated steps to curb pollution,” he said.
According to the Minister, it’s the responsibility of the two city corporations to keep its roads clean every day. “They must also sprinkle water on the roads to bring down the dust,” he said.
"Several decisions were taken at the inter-ministerial meetings to curb air pollution. Implementation of the measures can give effective results but there is no alternative to coordinated efforts of all agencies."
Read: Winter rain lashes Dhaka, more likely on Thursday in parts of Bangladesh
Footpath vendors doing brisk business ahead of Eid
As Eid-ul-Fitr is knocking on the doors, many poor and low-income people look to be on shopping sprees like the well-off classes, as everyone gets ready to celebrate the biggest religious festival with their near and dear ones.
Shoppers on low-budget are swarming the makeshift shops on footpaths and open spaces for buying dresses of their choices and other desired items, including shoes, sandals, cosmetics and jewelry, at cheaper prices.
Hundreds of temporary shops have been set up on the footpaths and open spaces in the most busy areas of the city, targeting mainly the low-income group of eid shoppers.
According to vendors, many middle-class buyers are also flocking to their stalls as they have outfits of various colours and designs and all other products like that of the posh shopping malls at reasonable prices.
Also read: Dhaka to see Eid exodus from Thursday as millions set to head home
The footpath sellers also said they are drawing good customers as people have got a chance for shopping in full swing after a break of two years due to the coronavirus pandemic.
Visiting different parts of the city on Thursday and Friday, it was seen that people were crowding around the makeshift shops in Gulistan, Bangabazar, Mothijheel, Baitul Mukarram , Paltan, New Market, Jatrabari, Fakirerpool, Mouchak, Rampura, Badda and Mirpur areas.
The vendors were seen trying to woo customers by displaying various items of girls' attires, children's clothes, cosmetics, men's, wears like jeans and gabardine pants, shirts, T-shirts, panjabis, trousers, footwear, belts, caps, lungis, wallets and toys.
Civic body fails to keep Nachol hydrated
Amid soaring temperatures during the fasting month of Ramadan, residents of Nachol in the northern district have been struggling to get something as basic as potable water.
The aggrieved residents claim that water scarcity is an annual occurance in Nachol, but the authorities concerned have so far failed to provide any relief. In fact, repeated complaints to local civic body officials have only fallen on deaf ears, they say.
Every morning, long queues of people can be seen before water tankers in several areas. The lucky ones get water, others are forced to return home empty-handed.
Abdur Rakib, a resident of ward-8, said, “We get water supply once a day and that's not enough for drinking, cooking, bathing and other purposes. The municipality has hiked taxes but failed to provide water to people.”
“It feels like we are living in a desert amid Ramadan. We have been forced to use water from a nearby pond for cleaning of utensils for the past few days,” Shahnewaj Parvin, a housewife from the area, said.
Local farmers fear that this water scarcity may snowball into a food production crisis. "Without water, we will not be able to water our crops. It's high time that the authorities woke up from slumber," said a farmer.
When contacted, Abdul Malek, assistant engineer of Nachol Municipality, was quick to admit the water crisis.
Read Also: Govt working to resolve water crisis: Minister