National Board of Revenue
Import duty on rice reduced to 25%
The import tariff on rice has beencslashed to 25 % from 62.5% an official announcement said on Thursday.
The change would be made effective from October 30 next.
Read: None will be allowed to make rice market unstable: Food Minister
The National Board of Revenue (NBR) issued a gazette notification in this regard.
According to the notification, rice importers have to pay 5% Advanced Tax (AT) and 5% Advanced Income Tax (AIT) in addition to a 15% customs duty.
Read: Bangladesh to import 550,000 mt of rice soon to boost stock
However, it will only be applicable to the imports of boiled and unboiled Atap rice.
Previously, the revenue authority had also reduced the tariffs to 25% last year in a bid to control the price hike by encouraging imports, but that facility was only valid till April this year.
Govt. set to expand social safety allowances in upcoming budget
The government is set to expand the social safety net in the upcoming budget as the Covid-19 has pushed at least 2.5 crore people below the poverty line.
In the forefront of the beneficiaries are the elderly persons, women left by husbands and widows, said sources at the finance ministry and national board of revenue.
Read: Prioritise saving lives, tackling inequality in the budget: CPD
Finance Minister AHM Mustafa Kamal will place the national budget for 2021-22 in Parliament on June 3.
The budget will set aside Tk. 3420 crore for elderly persons, up from Tk2940 crore in the current fiscal. Some 97 lakh persons will get the benefits, an increase of eight lakh from the running year. Similarly, allowances are being increased for widows and women left by husbands.
Read: Parliament gets Tk 336.14cr budget for next fiscal year
Their number will be 24.75 The allocation for this purpose would be Tk 1237.50 crore from the existing Tk 1230 crore.
Some 18 lakh insolvent disabled, 7.70 lakh poor pregnant women and 2.75 lakh poor lactating mothers will be put under the social safety net programme, said the sources.Transport workers who are affected by the pandemic will be included in the social safety net programme.
An amount of Tk 2500 crore has been earmarked for the affected transport workers.
Read: Sources: Agriculture to get increased subsidy in the upcoming national budget
Social welfare ministry sources said other social safety net programmes would be expanded and the ministry is working on it.
In the new budget the number of transgender, bede and underprivileged beneficiaries will be increased to 95,000.Prime Minister Sheikh Hasina has already provided financial assistance to some 36 lakh families who have been hit hard by the coronavirus pandemic and recent natural disasters.
Read: Prioritise health, education, agriculture in next budget: BNP
The families include 35 lakh low-income ones engaged in different occupations including affected transport workers. The remaining one lakh are farmers affected by recent natural disasters.Each of the 35 lakh families got Tk 2,500, while Tk 5,000 was given to each of one lakh farmer families.
The amount of allowance for the valiant freedom fighters of the country will also be increased.
The prime minister has already announced the allowance will be raised from Tk 12,000 to Tk 20,000 for the general category.
Read Freedom Fighters' allowance to rise by two-thirds from next fiscal
NBR looking to procure non-intrusive inspection systems for export-import items
The National Board of Revenue (NBR) is going to procure 13 full-fledged container scanner systems for introducing a non-intrusive inspection system that will expedite the release of export and import items.
The non- intrusive inspection system has been included in Section 197B of the Customs Act 1969 to boost examination of export and import consignments.
This system would also curb evasion of duties through false declaration.
Non-intrusive inspection technology refers to technical equipment and machines such as X-ray or gamma-ray imaging type equipment that allow the inspection of cargo without the need to open the means of transport and unload the cargo.
According to the NBR sources, the cost of these 13 systems would be some Tk 633 crore and it would be procured by its own resources.
These systems would include scanner, weigh bridge, radio portal monitor, and central and regional imaging system.
"Initially, we are going to procure six systems in the first phase," an NBR official told UNB.
Also read: NBR to prioritize local industries in 2021-22 budget, says its chairman
He said that tender has been floated for the purpose where the closing date of the tender was May 25, but the NBR extended the date for one month as the official activities of the country have been stuck due to the lockdown to contain coronavirus infection and mortality.
Of the six units, four will be installed in Chattogram Customs House, one each in Benapole and Bhomra land ports.
The NBR Official said that more than ten interested companies have procured the tender papers. They need to visit the installation sites to get a better idea for giving their final proposals in the preview meeting.
"That's why we have compelled to extend the submission date of the tender documents," he said.
In this regard he said that if the first phase of the procurement can be done smoothly, the NBR would go for the second procurement of seven more non- intrusive inspection systems.
In this connection, he mentioned the COVID-19 pandemic as a big hurdle which stalled all activities for a long time.
Also read: NBR faces uphill task in achieving VAT collection target
Earlier on March 31, the Customs Modernisation and Project Implementation section urged the NBR to include this procurement of six container scanner systems in the annual procurement plan (APP) for 2021-22 fiscal as it was not included in the APP for running 2020-21 fiscal.
Currently, the NBR has 11 container scanners across the country which is very low compared to the required number. On the other hand, the time for replacing some of the scanners is nearing.
Seven scanners are used at seven out of 12 gates of the Chattogram port, one scanner is deployed at the inland container depot of Kamalapur in Dhaka, one at Mongla seaport and two in Benapole land port.
Currently, custom houses physically examine 10-15 percent of the imported consignments.
Scanning of all consignments will prevent duty evasion through discrepancies in declaration such as over and under-invoicing as well as strengthen security of the country.
The government, in the budget for 2019-2020 fiscal has incorporated a provision for non intrusive inspection in the Finance Act-2019 to bring all consignments under mandatory electronic scanning.
Under the provision, no consignments, unless exempted by official order, shall be cleared from customs control at any customs port or customs station without electronic scanning.
There is also a provision for clearing of consignments by performing physical examinations in the absence of an electronic scanning system.
Experts for more growth-friendly, simple, transparent tax system
The National Board of Revenue (NBR) should reduce tax deduction at source (TDS) following global practices and need to modernise and simplify the country's tax system.
The regulator should offer incentives for Bangladeshi producers and focus on thrust sectors like leather, jute and garment fashion design to create a country brand in the international market.
Experts said this at an online conference on direct and indirect tax organised by the Institute of Chartered Accountants of Bangladesh (ICAB) on Saturday.
Also read: NBR moves to speed up revenue collection
Tax rate changes have a significant impact on investment decisions as investors prepare a budget and plan accordingly based on it, they said.
Pointing to the tax on foreign nationals working in Bangladesh, the experts suggested introducing provisions like withdrawals of tax and customs benefits, cash incentives, cancellations of branches permission for unauthorised employment.
Planning Minister MA Mannan said, "Considering the cost related to tax collection, it is better to chase the evasion of tax by big taxpayers than chasing marginal taxpayers."
Also read: It's time to change the mindset on taxpaying: Salman F Rahman
ICAB President Mahmudul Hasan Khusru said, "An improved tax system is the key to financing public services, reducing inequality, and making the government more accountable. Unfortunately, our tax rate is higher compared to the ones of similar economies including the neighbouring countries."
"Our tax to GDP ratio is exceptionally low. This indicates that there must be some incompatibilities," he added
Bangladesh is still a low tax effort country with a high buoyancy ratio, implying that the policy-makers of Bangladesh have the scope and potential to opt for greater revenue mobilisation through internal resources to meet the budgetary deficit, Mahmudul said.
Also read: NBR sets its sight on cranking up tax-GDP ratio
"However, the tax system in Bangladesh is gradually improving, raising more revenue and reducing the dependency on aid."
NBR moves to speed up revenue collection
The National Board of Revenue (NBR) is widening its net and realising outstanding taxes to meet the yearly revenue collection target of the Income Tax Wing.
For 2020-21 fiscal, the target of Income Tax Wing is to collect Tk 1039.45 billion. But NBR data show that after January of this year, only Tk 408.15 billion or 39.26% of the target was collected.
In January this year, the NBR has collected Tk 65.63 billion while it was Tk 61.88 billion in the same month of the previous year. The month-to-month basis growth is 6.06%.
Till January 2021, the NBR collected Tk 408.15 billion. The amount was Tk 383.27 billion in the corresponding period of last year with a 6.49% growth.
NBR sources said the Board has directed the tax commissioners to bring all eligible persons and organisations under the tax net and take initiative to remove the phobia regarding hassle in tax payment.
Also read: NBR to prioritize local industries in 2021-22 budget, says its chairman
It also asked to intensify the tax survey and activate the inactive TIN numbers as the submission of income tax returns have been made mandatory for every TIN holder from this fiscal.
The Income Tax Wing has already issued directives to field offices in these regards.
As part of the internal survey, the field-level officials are collecting possible taxpayers’ information from city corporations, Rajuk and other relevant authorities, and sub-registrar offices.
This is popularly called ‘secondary data’ which refers to the information of the individuals that are already kept with any organisation.
The NBR has also started to collect information of potential taxpayers at the upazila level through secondary data gathering, otherwise known as internal survey. For example, a file of ‘X’ company mentioned that it has 450 employees. The official concerned can ask for the names of the 450 employees and their TIN numbers.
Also read: Covid-19 impact: NBR devises ways to boost revenue collection
With such little move, the NBR can find out eligible taxpayers’ names and put them under the tax net, if they are not already under it.
“This is called internal survey,” a senior NBR official explained to UNB. The official said that at first, the NBR is taking information on the trade licences that have been issued from 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 NBR is collecting information of foreigners from Bangladesh Investment Development Authority (BIDA), vehicles owners from the BRTA, land buying and selling information from the sub-registry offices, power distribution offices and service-oriented offices.
Information of flat and house owners are also being collected from the National Housing Authority, the NBR official said. All these efforts would help NBR identify eligible taxpayers who are still out of tax net.
"We hope that this’ll help us raise revenue collection,” he added.
Also read: NBR sets its sight on cranking up tax-GDP ratio
NBR sources said the board officials generally collect information of potential taxpayers by a door-to-door survey. This is how they find out new taxpayers.
A senior official of the NBR said that the field officials have been asked to conduct their survey maintaining health safety rules.
According to an official document, at the end of the 7th Five Year Plan, which ended on June 2020, the revenue-GDP ratio was to be 16.1% in 2019-20 fiscal after gradual improvement, but the achievement was estimated at 12.7% while it was 9.9% and 9.6% in 2018-19 and 2017-18 fiscals respectively.
The total revenue collection for the budget for 2020-21 fiscal was set at Tk 3,780 billion where the NBR will contribute Tk 3,300 billion. The revenue from non-NBR sources was estimated at Tk 150 billion, while non-tax revenue at Tk 330 billion.
Of the grand amount for the NBR, Tk 1,039.45 billion will come from income, profit and capital tax, while Tk 1,251.62 billion will be contributed by VAT.
Supplementary tax will provide Tk 578.15 billion and Tk 378.07 billion will come from import duty. Tk 0.55 billion will come from export duty while Tk 36.86 billion from excise duty and Tk 15.30 billion as other taxes.
Parliament body for waiving import duty of sports items
A relevant parliamentary committee on Wednesday recommended the National Board of Revenue (NBR) to take necessary steps for waiving import duty of sports items.
The Parliamentary Standing Committee on Youth and Sports Ministry made the recommendation in its 13th meeting in order to promote sports in the country.
The meeting was held with committee chairman Abdullah Al Islam Jakob at the Jatiya Sangsad Bhaban, said a handout of the parliament.
Also read: Cabinet purchase body nods import of 50,000MT rice
Suggestions were made to construct 178 Upazila Youth Training and Entertainment Centres in the first phase as part of the establishment of a centre in every upazila in line with the government’s electoral manifesto.
It also recommended the ministry to send a development project proforma (DPP) over construction of some buildings, including an administrative building of the Directorate of Sports on the campus of Physical Education College in the city’s Mohammadpur area and academic building of the college, to the Planning Ministry.
Also read: Purchase body okays 6 proposals including import of LNG, rice
The parliamentary committee asked for sending a letter to the Fisheries and Livestock Ministry for handing over its land to Sheikh Hasina National Youth Development Institute for construction of its structures to implement the plans of the institute.
Committee members Mahabub Ara Begum Gini (Gaibandha-2), Abdus Salam Murshedi (Khulna-4), Jewel Areng (Mymensingh-1), AM Naimur Rahman (Manikganj-1) and Zakia Tabassum attended the meeting.
PK Haldar’s trail: BFIU seeks info on accounts held by SK Sur, Shah Alam
In an ‘unprecedented’ move, the Financial Intelligence Unit (BFIU) of Bangladesh Bank has sought information on the bank accounts of the central bank’s former Deputy Governor SK Sur Chowdhury and his wife, as well as those of serving executive director Shah Alam and his two wives.
Govt in comfortable spending position after economy averts crashing during pandemic
With the world economy stricken by the economic crisis brought on by the Covid-19 pandemic, the Bangladeshi economic engine has shown itself to be rather resilient in facing down the crisis and keeping the wheels of the economy turning.
Covid-19 impact: NBR devises ways to boost revenue collection
The National Board of Revenue (NBR) has devised five strategies to boost its revenue collection offsetting the negative impacts of the Covid-19 pandemic.
It's time to change the mindset on taxpaying: Salman F Rahman
People need to change their mindset on paying taxes for sustaining the inclusive development of the country, Salman F Rahman, private industry and investment advisor to the prime minister, said.