• Tuesday, October 22, 2019

Huge tax lost for illegal foreign employees: Bida

Discussion in 'Bangladesh Defence Forum' started by Black_cats, Oct 10, 2019.

  1. Black_cats

    Black_cats SENIOR MEMBER

    Messages:
    4,175
    Joined:
    Dec 31, 2010
    Ratings:
    +0 / 5,994 / -5
    12:00 AM, October 10, 2019 / LAST MODIFIED: 10:54 AM, October 10, 2019
    Huge tax lost for illegal foreign employees: Bida

    https://www.thedailystar.net/business/news/huge-tax-lost-illegal-foreign-employees-bida-1811644

    Refayet Ullah Mirdha

    [​IMG]
    The government is losing millions of dollars a year in taxes from the foreign nationals who are working without taking any work permit in Bangladesh, according to Bangladesh Investment Development Authority (Bida).

    It is mandatory for every foreigner to take prior permission from the state-owned investment promotion agency to serve any public and private company in Bangladesh.

    But of late, different private and public entities have been found not complying with the rule, Bida said in a letter sent to every ministry, department and agency of the government and different trade bodies.

    The Daily Star obtained a copy of the letter sent in the first week of August.

    According to industry insiders, the country has around 5 lakh foreigners in different ministries, projects and private companies. But only 1 lakh of them have registered with Bida.


    Every year, the foreigners send abroad over $5 billion, according to government agencies.

    Different development projects of the government are recruiting skilled workers mainly from India, China, Sri Lanka, the Philippines, the UK and Germany.

    Apart from government projects, the textile and garment sectors are the highest employers of foreign nationals in the private sector as Bangladesh needs a lot of experts in fashion and design, heavy machineries, merchandising, marketing and supply chain management.

    “Recently, the number of illegal foreign workers have increased manifold,” said a senior official of Bida seeking anonymity.

    “We are worried about it. That’s why we sent the letter to the ministries concerned and private companies for obtaining the work permits from Bida.”

    Some contracting firms of the government’s development projects were also found recruiting foreign nationals without taking prior permission from Bida.

    In some cases, the employers have been paying the foreign workers abroad in foreign currency although they are working here in Bangladesh, according to the letter.

    As a result, the government is losing the income tax from the employees and it is also squeezing the job opportunities for domestic skilled workers and fresh university graduates, the letter also said.

    Although many foreign employees have been drawing $10,000 and $12,000 as their monthly salary, they are showing their income in local currency mainly to evade tax, industry people also said.

    Moreover, the illegal foreign workers do not pay the tax to the government although they earn a hefty amount per month.

    Bida also sent a pattern for recruiting foreign nationals to the ministries, departments and agencies.

    Bangladesh Economic Zones Authority (Beza) is one of the government recruiting agencies.

    Different economic zones, both public and private, obtained work permits for some 1,000 foreign workers from the Beza so far, said Paban Chowdhury, its executive chairman.

    “I do not allow any foreign worker to be recruited in any economic zone without obtaining the permission,” Chowdhury told The Daily Star.

    Some local freight forwarding agencies recruited some 200 foreign nationals without any reason as the local institutions are capable of supplying the workforce in this sector, said an executive of a multinational company with operations in Bangladesh.

    Some 25,000 graduates are coming out from different universities and institutes in this specialised sector, he said.

    “For instance, Brac University, the AIUB, Bangladesh University of Professionals and IBA of the University of Dhaka are producing graduates in this subject.”

    Moreover, the London-based Chartered Institute of Logistics and Transport and the Dhaka Chamber of Commerce and Industry are producing diploma graduates on logistics and freight forwarding.

    “Then why do we need to recruit foreign nationals in this sector?” he asked.

    Shafiul Islam Mohiuddin, the immediate past president of the Federation of Bangladesh Chambers of Commerce and Industry, said the companies want to recruit local graduates but sometimes they cannot deliver the services as per requirement.

    “So, we depend on foreign nationals. We need to change the educational system so that we can produce an adequate number of skilled manpower,” Mohiuddin said.

    “We have a lot of MBA degree-holders, but we need technical people -- those showcasing innovation and professionalism.”
     
  2. bluesky

    bluesky SENIOR MEMBER

    Messages:
    7,681
    Joined:
    Jun 14, 2016
    Ratings:
    +4 / 8,582 / -8
    Country:
    Bangladesh
    Location:
    Japan
    By hearing the govt propaganda I almost believed that our education system is best in south Asia. Now, it is difficult to understand why our industries need professional people from India. They should bring back 8 million people from the ME and employ them as experts in everything.
     
  3. mmr

    mmr FULL MEMBER

    Messages:
    296
    Joined:
    Oct 13, 2018
    Ratings:
    +0 / 488 / -0
    Country:
    Bangladesh
    Location:
    Canada
    This wont help. Bd education system has serious quality issues. Even our best education institutions dont do any research work. Bd is lucky for now they found a way to excel economic growth without need for high skills. Two main driver textile and low skilled man power both dont need quality education. But how long we will be able to sustain this model? I will say maybe another 5 years then party is over.
     
    • Thanks Thanks x 1
  4. leonblack08

    leonblack08 SENIOR MEMBER

    Messages:
    2,561
    Joined:
    Dec 9, 2008
    Ratings:
    +0 / 1,159 / -0
    Country:
    Bangladesh
    Location:
    Canada
    I agree with you, I have a similar feeling as well. Also, don't forget the massive brain drain that is happening in Bangladesh in recent years. The skilled and educated individuals are moving out of Bangladesh in large numbers.

    Unless a drastic measure is taken to revamp the education sector and most importantly improve the overall quality of life, I foresee a bleak future ahead. I hope I am proven wrong though.
     
    • Thanks Thanks x 3
  5. bd_4_ever

    bd_4_ever SENIOR MEMBER

    Messages:
    2,323
    Joined:
    Nov 29, 2009
    Ratings:
    +0 / 2,752 / -0
    Country:
    Bangladesh
    Location:
    Switzerland
    Damn, Leon! Good to have to back brother. Its been sooo long. BTW, congrats on your new job tho. Saw it probably on LinkedIn or FB. :-)
     
  6. mmr

    mmr FULL MEMBER

    Messages:
    296
    Joined:
    Oct 13, 2018
    Ratings:
    +0 / 488 / -0
    Country:
    Bangladesh
    Location:
    Canada
    Why should the educated ppl stay in bd? Its a hopeless country. When i went to bd this year i realized i have few relatives in bd then i have in canada. And those who are still at bd really want to get out specially the younger generation. I was at toronto eid prayer this year at danforth and toronto mayor showed up there. According to mayor that was the largest eid prayer in north America and 95 percent ppl at danforth are bangladeshi immigrants. Most of these ppl immigrate to canada in last 10 years. Danforth used to be greek area now half the area are bd ppl.
     
  7. bluesky

    bluesky SENIOR MEMBER

    Messages:
    7,681
    Joined:
    Jun 14, 2016
    Ratings:
    +4 / 8,582 / -8
    Country:
    Bangladesh
    Location:
    Japan
    Dude @UKBengali, can you tell us why people should get out of BD when it is building many RSTP projects by 2030?
     
  8. leonblack08

    leonblack08 SENIOR MEMBER

    Messages:
    2,561
    Joined:
    Dec 9, 2008
    Ratings:
    +0 / 1,159 / -0
    Country:
    Bangladesh
    Location:
    Canada
    Thank you Brother, much appreciated.

    Yes, it has been a really long time since I used to be regular here. You know how it is, it's difficult to find time. Good to see you still keeping it up with everything going on with your life, MaShaAllah!
     
  9. Bilal9

    Bilal9 ELITE MEMBER

    Messages:
    10,965
    Joined:
    Feb 4, 2014
    Ratings:
    +11 / 17,359 / -4
    Country:
    Bangladesh
    Location:
    United States
    The main impetus about solving this problem should be,

    a) Raising public awareness using the news media as well as social media that hiring foreigners without work-permits is highly illegal, and

    b) At the same time make way for employers to enforce mandatory rules immediately for Foreigners to train local underlings who can replace them.

    Foreigners CANNOT stay in local employment forever.

    I am glad that BIDA has finally taken some concrete steps but they should make regular public proclamations and make examples at some larger companies by media-visible arrests and deportations as well fining non-compliant employers.

    This problem is getting way out of hand.
     
    • Thanks Thanks x 2