Dhaka, Bangladesh (BBN) - The BBN (Bangladesh Business News) has prepared the morning news highlights compiling reports, published by different newspapers and news portals in Bangladesh.
Revenue target 'too high' on back of poor tax base
A day after placing the national budget for the fiscal year (FY) 2015-16 in parliament, Finance Minister AMA Muhith admitted that the revenue- mobilisation target for funding it was 'too high' on the back of poor tax base. But, the revenue board hopes to get to the lofty goal in the end -- though it failed to do so in the outgoing fiscal year. The finance minister Thursday proposed 30 per cent increase in the NBR revenue mobilisation in the next FY, while placing a Tk 2.95- trillion national budget.
Revenue target may not be achieved for FY 16: CPD
The center for policy dialogue (CPD) has identified that the quality of fiscal planning is deteriorating over the last four years which is likely to continue while revenue collection targets set by the fiscal year (FY) 2015-16 budget may remain underachieved again. The observations emerged from a media briefing on the analysis of National Budget for FY 6 at BRAC Centre Inn on Friday, prepared overnight following the Finance Minister’s budget speech the earlier day. On Thursday, Bangladesh Finance Minister AMA Muhith placed BDT 2.95 trillion (US$37.93 billion) “mega” budget outlays for the next fiscal year at the National Parliament of Bangladesh aiming to transform the country into a land of prosperity.
The 34-hr packed schedule
Indian Prime Minister Narendra Modi during his around 34-hour whirlwind visit to Bangladesh beginning today is going to spend a busy time with official talks, meeting political leadership, ministers, businesspeople and people. As per the programme schedule, Modi is expected to arrive on board ‘Special Air Force Flight BBJ’ in Dhaka at 10:15am. He will lead an 81-member high-profile official delegation, which includes West Bengal Chief Minister Mamata Banerjee, National Security Adviser Ajit Doval, Foreign Secretary S Jaishankar and high officials and a 40-member security team. Prime Minister Sheikh Hasina will receive her Indian counterpart when he arrives at the VVIP terminal of Hazrat Shahjalal International Airport in Dhaka.
Modi arrives today to seal deals on transit
Indian prime minister Narendra Modi arrives in Dhaka this morning on a two-day state visit which is expected to pave the way for transit facilities to his country, what the two governments have called connectivity. About 20 agreements, protocols and memorandums of understanding between the two countries and some private and autonomous organisations are expected to be signed this evening at the Prime Minister’s Office. The instruments of ratification of land boundary agreements and protocols are also expected to be exchanged.
BB governor urges Indian businesses to utilize Bangladesh for producing goods
Bangladesh Bank (BB) Governor Dr. Atiur Rahman has urged Indian businesses to utilize Bangladesh as low cost manufacturing base to produce goods for local, Indian, and global markets, taking into account favored market access for exports from the country. “India, our closest large neighbor is partnering with us in promoting trade and investment linkages, with much needed investments in railway and other communication infrastructure,” the central bank chief said while addressing at a seminar as principal discussant on Friday.
Loans must not be tied
Bangladesh's move to borrow $2 billion from India in tied loans will do little good to the country, experts believe. Instead, the government should go for loans that don't limit the investment scopes, especially in infrastructure development with pressing needs. "Loans tied with import are harmful," said Dr Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue (CPD). A tied loan is the credit that a government makes to a foreign borrower on the condition that the borrower will use the loan to purchase goods from the lender country. Dhaka and New Delhi are expected to sign an agreement for the loan during Indian Prime Minister Narendra Modi's two-day Dhaka visit that begins today.
Telcos start addl tax charging on mobile calls, internet use
The country’s mobile phone operators on Friday started charging additional 5 per cent supplementary duty on mobile calls, internet use and other value added services through the phones as the government slapped the duty on Thursday. The National Board of Revenue on Thursday issued a Statutory Regulatory Order to this effect after finance minister Abul Maal Abdul Muhith placed the budget proposals for the financial year 2015-16 before the parliament in Dhaka. According to officials of different mobile phone companies, the mobile users have to pay Tk 20.75 in taxes for per Tk 100 use through their phones as there was already 15 per cent VAT imposed on such services.
BGMEA: Keep source tax at 0.30%
BGMEA President Atiqul Islam yesterday urged the government to keep tax at source at 0.30%, terming the proposed budget for the fiscal year 2015-16 unfriendly for the textile industry. In the proposed budget unveiled on Thursday, the government proposed to raise the tax at source for the RMG sector and other export oriented exporters to 1% for the fiscal year 2015-16. Currently, the apparel makers pay 0.30% tax at source, while the other export-oriented sectors pay 0.60%. The BGMEA chief made the appeal at a media briefing at his office jointly organised by Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA).
BBN/SSR/AD-06June15-10:16 am (BST)