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There is no possibility to defer implementation of the new VAT law from July 1 next, state minister for finance MA Mannan said Sunday. "We will implement the new VAT law this time," he said categorically, addressing a workshop on roadmap to ensure compliance with the new VAT law. Foreign Investors' Chamber of Commerce and Industry (FICCI) and the VAT online project of the National Board of Revenue (NBR) jointly organised the day-long workshop at a city hotel to build awareness about the new VAT and Supplementary Duty (SD) Act - 2012. Mr Mannan said the government officials and businesses will have to abide by the VAT law enacted by the parliament. He suggested the revenue authority to enforce the new law to benefit both the people and the businesses. FICCI president Rupali Chowdhury said the existing VAT law, 1991 has turned into a complicated one due to the incorporation of so many special orders, statutory regulatory orders (SROs) and other government orders as well as expansion of the VAT net. She appreciated the courageous steps taken by the government to revise the VAT laws in commensurate with the business development. The FICCI president placed tax-related proposals for consideration by the government, including settlement of long-pending issue of investing gratuity fund in the government saving certificates. Few other proposals included the withdrawal of tax at source on income of provident fund, gratuity and workers' profit fund, re-introduction of earlier provision of minimum tax, reduction of tax deduction from royalty and technical knowhow fees, tax-exemption for workers' participation fund and considering the transaction value for customs assessment purpose to avoid over valuation of imported products. Jamil Osman, executive director of FICCI, delivered welcome speech at the inaugural session while Kevin Lyon, vice-president of FICCI and president of Chevron Bangladesh, delivered vote of thanks. Speaking at the inaugural session, NBR member (VAT policy) Barrister Jahangir Hossain said three wings of the NBR will implement the new laws on income tax, customs and VAT. "Some unscrupulous people are creating obstacles to smooth implementation of the new VAT law. We have to work together to face the challenge," he said. A very dynamic tax system will be established after implementation of the new VAT law and it would be a paradigm shift, he added. Three technical sessions were held in the workshop, chaired separately by Rezaul Hasan, Member, Customs & VAT, Administration & Director, VAT Online Project, NBR; Barrister Jahangir Hossain, Member, VAT Policy, NBR; and Md Nooruddin Chowdhury, Country Manager, DHL Global Forwarding (BD) Ltd & Executive Committee Member of FICCI.   Mr. Abdul Khalek, Director & CFO, Berger Paints Bangladesh Ltd, presented a paper on "adoption of the changes in new VAT laws in business planning and operations." Md. Zakir Hossain, Additional Commissioner & Deputy Project Director, VAT Online Project, presented a paper on "online procedure of new VAT system." Dr. Nahida Faridy, Additional Commissioner, VAT, Customs, Excise & VAT Commissionerate, Dhaka (South), presented a paper on "the rights & responsibilities of VAT payers." This session discussed the rights and responsibilities of VAT payers in the context of new VAT laws. doulot_akter@yahoo.com....

Published at: 2017-01-30 00:00:05

The World Bank (WB) has identified three projects, funded by the global lender, as problematic and sought necessary steps to ensure their delivery and implementation before June 2017, officials said. "At present, several financial sector projects are on critical path, and our teams need to focus on ensuring delivery and implementation before June 2017," the WB said recently in a letter sent to the Economic Relations Division (ERD). Earlier, the ERD sent a letter to the WB on December 08 last, requesting International Development Association (IDA) support to Palli Karma-Sahayak Foundation (PKSF) through a proposed project titled promoting micro-enterprise to expedite poverty reduction (PMEPR).   The WB recently replied to the letter sent by the ERD secretary. The lender in its letter said, "Given the role of the micro-enterprise sector as a major generator of jobs, especially for low-income citizens and the large shortfall in the supply of adequate financing for this sector, we also attach great importance to these proposed initiatives for promoting inclusive growth in Bangladesh." The modernisation of state-owned financial institutions project was approved by the WB board on June 30 in 2016, but has not been made effective yet, awaiting DPP (Development Project Proforma) processing and the Executive Committee of the National Economic Council (ECNEC) approval in order to proceed with implementation. The total budget for the project will be US$ 150 million. The project will improve performance of the state-owned banks that together account for 30 per cent of total banking sector assets by automating the business and transaction process. The project will implement a modern information technology (IT) infrastructure project to support stronger cyber security, centralised processing, branch connectivity, an enterprise-wide email system and ATM network. It will further help improve bank data quality, develop better financial reporting systems and strengthen internal resource management and control, including staff training. The insurance sector development project (ISDP) is now awaiting DPP processing in order to proceed with negotiations. Some US$ 65 million will be expended for the project. The objective of the project is to strengthen the institutional capacity of the sector regulator and the state-owned insurance corporations for enhancing insurance coverage in the country in the present context. Besides, the investment promotion and financing facility project-II is awaiting a special project evaluation committee (SPEC) meeting, a non-concessional loan committee meeting, and DPP processing in order to proceed with negotiations. The global lender has recently selected four projects that include the central bank's IPFF-II to provide US$ 300 million worth of funds. The BB is the implementing agency of the project. "We will look forward to partnering with PKSF to develop the proposed PMEPR project for the fiscal year 2018, once greater progress has been made on the above projects," the WB letter said. Despite several attempts over phone, secretary (in-charge) of the ERD Kazi Shofiqul Azam could not be reached for his comments in this regard. rezamumu@gmail.com....

Published at: 2017-01-30 00:00:05

The government and businesses need to look beyond the borders to fit in the current global business scenario that is passing through a radical transformation, experts said in the light of recent Davos policy updates.     Such faster changes, they said, are being brought about by the dynamics of science, technology and innovation (STI) coupled with fast-changing trading arrangements. According to the business leaders, bankers, diplomats and think tanks who came up with the suggestion for strategic switch in trade, world economy emerges in new and innovative business models with changes in global supply chain, consumerism pattern, behavior and the like. They laid importance on the country's readiness towards embracing new emerging norms, practices, standards for adopting subsequent trends in global manufacture and consumption patterns. They were sharing views based on experience of the latest World Economic Forum meeting in Davos as they met Sunday at Lakeshore hotel in the city for a recap on the summit-level deliberations on global economic order. Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka in collaboration with the Ministry of Foreign Affairs organized the seminar on 'Bangladesh in Davos: some reflection' to share the Davos experience and prepare the country towards the global changes. Foreign Minister Abul Hasan Mahmood Ali attended closing ceremony. He laid importance on considering global changes and adopting those for the benefit of the country. Bangladesh industry and business would also profit by focusing the ongoing global conversation, norms and order shaping technology, entrepreneurship and innovation agenda. "In this, we all are together! This is indeed about collectively 'branding', or 'positioning' Bangladesh in an era of unprecedented uncertainty," the Foreign Minister said, recalling WEF Executive Chairman Professor Klaus Schwab's comment as 'unmapped territory'. He said global business is looking at the new sustainable development blueprint and talking about harnessing opportunities out of the global development architecture, including manufacturing, finance, investment, service sectors. "Our government, business and industry will have to assume new roles and responsibilities," he said and highlighted the country's success in apparel, leather, ICT, pharma, shipbuilding industries that got exposed to and integrated with global supply and value chains. Foreign Secretary Shahidul Haque also highlighted the global business challenges from the Davos experience and said the global leaders are focused more on social equality, environment than addressing poverty. He said technology, changing geopolitics, inequality and climate change are shaping up business scenarios and business roles and the world is preparing for the '4th industrial revolution', creating new alliance, strengthening governance and globalization and international collaboration. While addressing a session on 'Bangladesh in a transforming world, way forward', the Foreign Secretary also listed challenges identified by world business leaders in the 47th WEF meeting and said the new world is now hybrid world with transformation of balance of power, emerging virtual world of geopolitics and new financial systems. He said natural disasters, extreme weather events, large-scale involuntary migration, and terror attacks, data fraud/theft, cyber attacks, manmade disaster, interstate conflict and failure of governance dominated the Davos platform. "People virtually more and more connected and cry for new governance system, new governance architecture," he told the gathering. The MCCI event was conducted in three sessions moderated by Centre for Policy Dialogue Executive Director Dr Mustafizur Rahman, MD and CEO of Mutual Trust Bank Anis A Khan and Ambassador Farooq Sobhan respectively. Immediate-past MCCI President Syed Nasim Manzur moderated the inaugural session and incumbent Nihad Kabir the closing session. Bangladesh Ambassador to Sri Lanka M Riaz Hamidullah highlighted the future of business and risks to business. Among others, former Finance Minister M Syeduzzaman, former ambassadors Humayun Kabir, Munshi Faiz Ahmed and Towfiq Ali, Chief Executive Officer of HSBC Ltd Bangladesh Franscois de Maricourt, co-founder and CEO of bdjobs.com Fahim Mashroor, BGMEA Director Miran Ali, Chairman and MD of Unilever Bangladesh Kamran Bakr, ED of BIGD Dr Sultan Hafeez Rahman and Member GED of Planning Commission Dr Shamsul Alam and Additional Secretary of Commerce Ministry Abdur Rouf spoke on the occasion. President of the International Chamber of Commerce, Bangladesh (ICC,B) Mahbubur Rahman was also attended the seminar. The ex-MCCI president laid importance on rematching business with global transformation for inclusive growth of the country and said cost of technology, market-oriented skills development should get focus to support job market by 2030. The present MCCI president highlighted the infrastructure, export diversification etc and said public-private partnership is important to improve business environment. The panelists and discussants highlighted consumerism pattern, behavioral changes, green growth, learning, migration, regional cooperation and development of populism that are getting focuses in the global business scenario and said Bangladesh should focus more on employment creation with skills and education to absorb people in the job market. smunima@yahoo.com....

Published at: 2017-01-30 00:00:05