Haque Specialized Group's News

Bangladesh Railway (BR) managed to tidy its annual report card showing over 90 per cent execution performance in the past fiscal by dropping Padma Bridge Rail project at the last moment. Official sources said non-disbursement of any funds from China as project aid was shown as the ground for the last-minute discarding of the PMB rail-link project. Such up-scaling of project-implementation performance took place when there has been skepticism about budget implementation, especially ADP execution, by different government agencies.          Sources said the BR performance in implementing annual development programme (ADP) was recorded 66 per cent with Padma Bridge Rail Link project in the calculations. But the state-owned railway authority calculated the performance higher at 93.03 per cent by leaving out the project's Tk 27.42 billion allotment at the end of June. According to BR officials, the ADP performance was prepared based on the amount received as project aid and the amount spent at the end of the fiscal year 2016-17. "Since we have not received any fund from the Chinese government as project aid, it is obvious not to mention the amount in the ADP as project aid," said an official. The BR signed a commercial contract with a Chinese company for implementing Padma Rail Link project at a cost of Tk 3.4 billion last year, but it could not make any progress for failing to sign any loan agreement with the Chinese EXIM bank. According to ADP, the BR was allotted Tk 92.78 billion after revision but it could spend Tk 60.80 billion till the end of FY 2016-17. The BR spent Tk 18.39 billion out of Tk 22.35 billion allotted as PA recording 82.29 per cent performance. Sources said despite dropping the Padma Bridge Rail Link project, the BR performance in spending project aid was lower for failing to get funds from the Indian Exim Bank under a line of credit (LoC) offered to Bangladesh. The railway was allotted Tk 3.59 billion for the 2nd Bhairab and the 2nd Titas bridge projects to construct the bridges with approach rail lines but could spend Tk 1.64 billion until June last. In the just-concluded fiscal year, the highest-ever budget for the state-owned rail operator was allotted for mainly two projects -- Padma Rail Link and Dohazari-Ramu Rail Link. The two are most expensive projects in the history of Bangladesh Railway. But the Dohazari-Ramu Rail Link project's performance was recorded almost 100 per cent for its being able to spend both government-and project-aid funds. smunima@yahoo.com....

Published at: 2017-07-14 00:00:04

The National Board of Revenue (NBR) is now in a dilemma over deciding on two types of Business Identification Number (BIN) after the government backtracked from implementation of the new VAT law from the current fiscal year. Currently, both nine-digit under new VAT law and 11-digit BINs under existing VAT Act-1991 are active for operation of businesses including export and import. The VAT authority issued nine-digit electronic BIN (e-BIN) to some 50,000 businesses as a ground work for implementation of the new Value Added tax (VAT) and Supplementary Duty (SD) Act-2012.   The government planned to implement the new VAT law by replacing the existing one, but following pressure from the business community, it deferred the execution of the new law for two years. After rolling back from the implementation of the new law, field-level offices are facing operational problems as the terms and conditions of the e-BIN have been framed as per the new law. Also, businesses are also confused over two active BINs. BIN is mandatory for operating different business activities including export and import. Following the confusion, the NBR sent a letter Thursday to all field-level VAT offices across the country seeking opinion of the commissioners on BINs. The NBR has drafted a public notice on BIN and sought opinion of the commissioners on the draft on an urgent basis within 24 hours. It instructed the commissioners to give their opinions keeping revenue collection flow and actual situation of field offices in mind. In the draft public notice, the NBR has pledged to scrap the old 11-digit BIN by December 31, 2017. Until that time, both the BINs will be considered as active. It also decided not to issue 11-digit BINs for new businesses after issuance of the notice. The NBR would continue the new nine-digit BIN under the existing VAT law-1991. But the VAT wing would amend the necessary provisions of the new BIN to resolve inconsistencies. New BIN would be made mandatory under existing VAT law. Businesses will submit VAT returns under the commissionarates in their respective jurisdiction. Central VAT registration will not be mandatory for new BIN holders, the draft notice said. Nine-digit BIN holders will have to obtain e-BIN for each of their units despite having central registration. Businesses will have to submit VAT returns in their respective jurisdiction unless the NBR issues further order. The VAT wing is working on amendment of the relevant VAT-6 and VAT-8 forms and rules to accommodate nine-digit BIN with the existing VAT Act-1991. However, businesses can obtain central registration under online system as per existing law upon some conditions. In the draft public notice, the NBR said the e-BIN is not related with the new VAT law. It would help to ensure hassle-free taxpayers-friendly environment. Officials said the draft public notice might be amended and will be finalised as per suggestions of the commissioners in 12 VAT commissionarates. They said it would be difficult to monitor and supervise the nine-digit BIN-holding businesses unless the NBR amends relevant provisions and rules of the e-BIN. Central VAT registration of a business unit may cause difficulties as a business unit has different natures of ventures, said a field-level VAT official. Auditing and monitoring the revenue collection growth would be difficult if such businesses have a central BIN and submit one VAT returns for all units, he said. Automation is necessary but it should be as per existing VAT law, he said. The NBR started issuing e-BIN from March 23, 2017. doulot_akter@yahoo.com....

Published at: 2017-07-14 00:00:04

The flood situation in four districts deteriorated further, reports UNB. Major rivers in the districts kept overflowing Thursday, leaving two children dead and huge people marooned. Although the flood situation worsened in Jamalpur, Kurigram, Lalmonirhat and Gaibandha districts while it is improving in Sylhet and Moulvibazar districts. Meanwhile, the sudden decrease in water flow at Teesta and Dharala basins triggered serious river erosion in many areas of Kurigram, Lalmonirhat and Gaibandha districts. In the last 24 hours, five schools were washed away by the Brahmaputra River, and 18 more have remained at risk in Kurigram and Teesta and Dharala rivers devoured some 63 houses in Lalmonirhat. In Gaibandha, two children -- Sawpna Khatun of Kamarjani union in Sadar upazila and Pinha of Kabilpur in Phulchhari upazila -- drowned in floodwater on Wednesday night and Thursday respectively. Besides, river erosion took a furious turn as water level in Bramhaputra and Ghaghat rivers continued to rise over the last few days, witnesses said. The people of the flood-hit areas have been facing immense sufferings for lack of adequate food, safe drinking water and sanitation. District administration source said a total of 2,10,000 people of 190 villages in 29 unions were affected by the flood while only 3,000 people took refuge in shelter centers. Besides, at least 123 primary schools remained closed in four upazilas of the district due to the flood. In Kurigram, the overall flood situation of the district worsened further as the Brahmaputra was flowing 37 cm above the danger level at Chilmari point while the Dharala 18 cm above the danger mark at the Bridge point. The water level in Dudhkumar increased by 4 cm, while the flow of the Teesta decreased by 14 cm. The two rivers were flowing slight below their danger levels. In the last 24 hours, 15 villages went under water afresh. Eighty-seven medical teams were formed in the district to prevent the outbreak of waterborne diseases in the flood-hit areas. More then 0.2 million people in seven upazilas, out of nine, remained trapped in floodwater for the past few days while at least 150 schools were announced closed for the flood.....

Published at: 2017-07-14 00:00:04

Bangladesh inked Thursday the country's first-ever deal to import from Qatar liquefied natural gas (LNG), a new fuel for the country, to meet the mounting natural gas demand. Qatar's RasGas and Bangladesh's state-owned Petrobangla signed the long-awaited initial deal at Petrocentre in the city over import of around 2.5 million tonne per year of lean LNG for 15 years, a senior Petrobangla official told the FE. A delegation from RasGas arrived in Dhaka on Wednesday last aiming to ink the initial agreement. But  the move to sign it failed last week as the two sides could not reach any final decision over pricing then, said the official of Petrobangla requesting anonymity. Both the parties talked about different pricing formula Thursday again and decided that the pricing would be linked to the international price of crude oil, said the official, as he was not authorised to speak to the media. Other issues including quantity, the mode of payment and tenure of agreement were also discussed during Thursday's meeting, he added. The official did not say anything further, terming it as 'confidential.' Petrobangla chairman Abul Mansur Md Faizullah earlier in late June said that Bangladesh finalised preliminary government-to-government negotiations with Qatar's RasGas during a visit to the Gulf country then to import the fuel. They settled all the issues then except pricing. A final sales and purchase agreement is slated to be signed in August after receiving approval from the country's cabinet committee, he added This is Bangladesh's first long-term LNG contract. Bangladesh had signed initially a memorandum of understanding (MOU)  with RasGas back in January 2011 to import annually around 4.0 million tonne of LNG, which was extended several times after that and a 'confidentiality agreement' was inked over the issue in 2015, said the official. Separately, state-owned Petrobangla signed a MOU on LNG import with Switzerland-based AOT Energy, with a final sales and purchase agreement due to be signed by the year-end, and recently issued an international tender seeking expression of interest to supply LNG on a spot basis. "We are very cautious in inking our first-ever deal to import LNG as it is very new for us," said the Petrobangla official. "The quantity could be increased later as the deal is flexible," he said. "We can ink more deals to bring enhanced quantity of natural gas from RasGas like the agreements signed by Pakistan and India," he added. Bangladesh will be importing lean LNG in line with the type of natural gas produced from the country's domestic gas fields, said officials. "We will import lean LNG, which will be blended with local gas before supplying to end-users, as we will have no dedicated pipeline, at least for now, to carry regasified imported LNG," the official added. Petrobangla's contract with RasGas will be priced against international crude oil benchmarks, but the official said the company was open to pricing future deliveries with a link to other indexes such as the Platts JKM, a daily physical spot market price assessment for LNG delivered to Japan, South Korea, China and Taiwan. "For the first project, we are keeping it very simple," he said. Whatever the price indexation, Petrobangla is counting on government subsidies to enable it to pay for the imported LNG. Earlier this year, the company requested for a subsidy of $1.4 billion from the government to foot its LNG import bill for 2018. Subsidies will be aimed at bridging the wide gap between international LNG prices and domestic gas prices in the power and fertiliser sectors, which will be the key consumers of the imported LNG, accounting for more than 60 per cent of Bangladesh's gas consumption. Currently, the power sector accounts for more than 57.7 per cent of Bangladesh's natural gas consumption, and this percentage is likely to increase, the officials said, as the country aims to expand its gas-fired power generation capacity. Bangladesh seeks to start LNG imports in early 2018 and is making concerted efforts to move forward with LNG import infrastructure.        The country's first LNG import terminal, a 3.75 million tonne per year floating, storage and re-gasification unit (FSRU) being developed by US-based Excelerate Energy, is expected to be commissioned in April 2018. Bangladesh has been grappling with a natural gas deficit since 2009, when rapid industrialisation forced Petrobangla to ration supplies to industries, power plants, CNG filling stations and fertiliser factories, and suspend new piped gas connections to commercial and household consumers. Azizjst@yahoo.com....

Published at: 2017-07-14 00:00:04

Facebook recently crossed 2.0 billion users, and India may be home to many of its next billion. The country has long been a growing market for the social media network as more Indians come online. However, based on new data sent to advertisers, Facebook now has 241 million active users in India - a million more than it does in the US- making India the country with its largest user base for the first time.     — investopedia.com....

Published at: 2017-07-14 00:00:04