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when will a pdf Bangladeshi member will post something positive about awami govt ??
Awami govt set to destroy backbone of Bangladesh economy
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Capital machinery, industrial raw material imports slump
Economists say GDP growth to be affected
AKM Zamir Uddin
The import of capital machinery and industrial raw materials plummeted in the first five months of the current fiscal year, raising fears for the state of the country’s industrial sector and its overall growth.
The settlement of letters of credit or actual import payment for capital machinery in July- November posted a negative growth of 28.02 per cent and industrial raw materials a negative 6.31 per cent compared with that of 82.90 per cent and 56.07 per cent growth in July-November in the FY 2011-2012.
Executive director of local think-tank Centre for Policy Dialogue Mustafizur Rahman told New Age on Thursday that the negative import growth in capital machinery and industrial raw materials had already hit the export earning in the last few months.He said that the negative trend had already affected the local investment and would hamper the expected GDP growth rate for the FY 2012-13.
The government has set a target to achieve 7.2 per cent GDP growth in the current fiscal year.‘The negative import growth in the two vital products – capital machinery and industrial raw materials– does not match with the expected GDP growth rate,’ he said.
Bangladesh Institute of Development Studies research director Zaid Bakht said the import of industrial raw materials and capital machinery had declined due to an unfriendly environment for investment.The prevailing political turmoil has made a negative business climate in the country, he said.
He said, ‘A number of businessmen were reluctant to import the two items as the existing industries were facing a severe power crisis. Businessmen are now reluctant to expand their investment. So, the growth in import of industrial raw materials and capital machinery continues to decline.’
According to the Bangladesh Bank data released on Wednesday, the settlement of LCs for the capital machinery totalled only $803.12 million in July-November against $1,115.75 million in the first five months of the FY 2011-12.LC opening for the capital machinery in the first five months of the FY 2012-13, however, registered a 2.49-per cent growth compared with that of a negative growth of 17.58 per cent in the corresponding period of the FY 2011-12.
LC settlements in the first five months of the current financial year for the industrial raw materials were $5.38 billion against $5.74 billion in the corresponding period of the FY 2011-12.
LC opening for the industrial raw materials in the first five months of the FY 2012-13 also registered a negative growth of 5.24 per cent compared with that of 17.96 per cent growth in the same period of the FY 2011-12.
New Age | Newspaper
Economists say GDP growth to be affected
AKM Zamir Uddin
The import of capital machinery and industrial raw materials plummeted in the first five months of the current fiscal year, raising fears for the state of the country’s industrial sector and its overall growth.
The settlement of letters of credit or actual import payment for capital machinery in July- November posted a negative growth of 28.02 per cent and industrial raw materials a negative 6.31 per cent compared with that of 82.90 per cent and 56.07 per cent growth in July-November in the FY 2011-2012.
Executive director of local think-tank Centre for Policy Dialogue Mustafizur Rahman told New Age on Thursday that the negative import growth in capital machinery and industrial raw materials had already hit the export earning in the last few months.He said that the negative trend had already affected the local investment and would hamper the expected GDP growth rate for the FY 2012-13.
The government has set a target to achieve 7.2 per cent GDP growth in the current fiscal year.‘The negative import growth in the two vital products – capital machinery and industrial raw materials– does not match with the expected GDP growth rate,’ he said.
Bangladesh Institute of Development Studies research director Zaid Bakht said the import of industrial raw materials and capital machinery had declined due to an unfriendly environment for investment.The prevailing political turmoil has made a negative business climate in the country, he said.
He said, ‘A number of businessmen were reluctant to import the two items as the existing industries were facing a severe power crisis. Businessmen are now reluctant to expand their investment. So, the growth in import of industrial raw materials and capital machinery continues to decline.’
According to the Bangladesh Bank data released on Wednesday, the settlement of LCs for the capital machinery totalled only $803.12 million in July-November against $1,115.75 million in the first five months of the FY 2011-12.LC opening for the capital machinery in the first five months of the FY 2012-13, however, registered a 2.49-per cent growth compared with that of a negative growth of 17.58 per cent in the corresponding period of the FY 2011-12.
LC settlements in the first five months of the current financial year for the industrial raw materials were $5.38 billion against $5.74 billion in the corresponding period of the FY 2011-12.
LC opening for the industrial raw materials in the first five months of the FY 2012-13 also registered a negative growth of 5.24 per cent compared with that of 17.96 per cent growth in the same period of the FY 2011-12.
New Age | Newspaper
Fuel price hike seen to fuel inflation, affect GDP
The latest price hike of major petroleum products, particularly of diesel and kerosene, is seen to fuel the already escalating inflation and push the living cost further up.
The government increased the prices of diesel and kerosene by Tk 7 a litre from Tk 61 to Tk 68 and that of petrol and octane by Tk 5 per litre with effect from Thursday midnight. Now the price of petrol stands at Tk 96 a litre and that of octane at Tk 99.
The rise in the diesel price will increase the cost of transportation, communication, and boro cultivation forcing the fixed- and low-to-middle-income groups of people to allocate additional money in their budgets for those purposes as well as for buying essentials, a number of economists said.
They warned that the soaring price of commodities had been forcing such consumers to cut down on their consumption of non-food items which would affect the gross domestic product.
According to the latest data available with the Bangladesh Bureau of Statistics, the general index of inflation stood at 7.41 per cent in November rising from 7.22 per cent in October.On the other hand, an official handout on Thursday evening claimed the inflation would not cross the 7.5 per cent limit set for the 2012-13 financial year even after the latest price hike of petroleum products.
The latest round of fuel price hike was put into effect when the lower- and middle-income groups of the society were already overburdened due to earlier hikes in diesel and kerosene prices by 38.64 per cent and that of retail power price by 60 per cent over the past two to three years.
Bangladesh Institute of Development Studies research director Zaid Bakht told New Age that the latest price hike of fuel oils would influence the growing trend of inflation, particularly the non-food inflation. This will affect the consumption basket through a drop in buying capacity of lower- and middle-income people, he predicted.Unnayan Onneshan chairman Rashed Al Mahmud Titumir echoed Zaid saying that the budget-cut by the fixed- and middle-income people for buying non-food items would even create a recession in import. This will affect the GDP as it is driven by consumption.
Titumir censured the government for its lack of farsightedness in solving power shortage. Explaining his position he said, the government first fell into budgetary pressure in buying expensive rental power and now it has lost its sovereignty of policymaking for the peoples interest by being dependent on the IMF for a mere $1 billion credit.
International financing agencies like the World Bank and the International Monetary Fund have been pursuing the government to withdraw subsidy from fuel and electricity to make the sector viable for private business. In exchange, the agencies hand out soft loans to the government to manage its budgetary deficit. With the latest round, the government has so far raised the prices of diesel and kerosene by Tk 24 a litre and of petrol and octane by Tk 22 in five phases.
It has also increased the price of furnace oil by Tk 34 a litre in 2011 from Tk 26 to Tk 60 in six phases. Meanwhile, the government has also persuaded the Bangladesh Energy Regulatory Commission to raise the average price of electricity by Tk 2.24 a kilowatt-hour from Tk 3.76 to Tk 6 in six phases since March 2010.
Over that period thegovernments annual subsidy in power generation has increased more than four times from Tk 900 crore to Tk 3,850 crore. A Power Division official projects that to increase power generation from rental plants during this boro season that amount might exceed Tk 7,000 crore in the current fiscal year.
New Age | Newspaper
The latest price hike of major petroleum products, particularly of diesel and kerosene, is seen to fuel the already escalating inflation and push the living cost further up.
The government increased the prices of diesel and kerosene by Tk 7 a litre from Tk 61 to Tk 68 and that of petrol and octane by Tk 5 per litre with effect from Thursday midnight. Now the price of petrol stands at Tk 96 a litre and that of octane at Tk 99.
The rise in the diesel price will increase the cost of transportation, communication, and boro cultivation forcing the fixed- and low-to-middle-income groups of people to allocate additional money in their budgets for those purposes as well as for buying essentials, a number of economists said.
They warned that the soaring price of commodities had been forcing such consumers to cut down on their consumption of non-food items which would affect the gross domestic product.
According to the latest data available with the Bangladesh Bureau of Statistics, the general index of inflation stood at 7.41 per cent in November rising from 7.22 per cent in October.On the other hand, an official handout on Thursday evening claimed the inflation would not cross the 7.5 per cent limit set for the 2012-13 financial year even after the latest price hike of petroleum products.
The latest round of fuel price hike was put into effect when the lower- and middle-income groups of the society were already overburdened due to earlier hikes in diesel and kerosene prices by 38.64 per cent and that of retail power price by 60 per cent over the past two to three years.
Bangladesh Institute of Development Studies research director Zaid Bakht told New Age that the latest price hike of fuel oils would influence the growing trend of inflation, particularly the non-food inflation. This will affect the consumption basket through a drop in buying capacity of lower- and middle-income people, he predicted.Unnayan Onneshan chairman Rashed Al Mahmud Titumir echoed Zaid saying that the budget-cut by the fixed- and middle-income people for buying non-food items would even create a recession in import. This will affect the GDP as it is driven by consumption.
Titumir censured the government for its lack of farsightedness in solving power shortage. Explaining his position he said, the government first fell into budgetary pressure in buying expensive rental power and now it has lost its sovereignty of policymaking for the peoples interest by being dependent on the IMF for a mere $1 billion credit.
International financing agencies like the World Bank and the International Monetary Fund have been pursuing the government to withdraw subsidy from fuel and electricity to make the sector viable for private business. In exchange, the agencies hand out soft loans to the government to manage its budgetary deficit. With the latest round, the government has so far raised the prices of diesel and kerosene by Tk 24 a litre and of petrol and octane by Tk 22 in five phases.
It has also increased the price of furnace oil by Tk 34 a litre in 2011 from Tk 26 to Tk 60 in six phases. Meanwhile, the government has also persuaded the Bangladesh Energy Regulatory Commission to raise the average price of electricity by Tk 2.24 a kilowatt-hour from Tk 3.76 to Tk 6 in six phases since March 2010.
Over that period thegovernments annual subsidy in power generation has increased more than four times from Tk 900 crore to Tk 3,850 crore. A Power Division official projects that to increase power generation from rental plants during this boro season that amount might exceed Tk 7,000 crore in the current fiscal year.
New Age | Newspaper
DSE worst performing market in 2012
Ahmed Shawki
Country’s premier bourse the Dhaka Stock Exchange was the worst performing stock market last year in comparison with the major stock markets across the globe.According to the latest DSE data, the bourse’s benchmark general index, DGEN, lost 20.26 per cent till November 2012, whereas other Asian and global indices gained during the period.
The DGEN, however, gained 62 points in December, but it lost a total 1,038 points or 19.74 per cent in 2012, stretching a bear run to the second year, according to New Age calculation.
In Asia, Pakistan’s Karachi 100 was the best performing index during the period with a gain of 36.50 per cent while India’s BSE 30 advanced by 22.60 per cent during the same period of time.
Thailand’s SET was the second best, advancing by 36.10 per cent during the period when Taiwan’s Taiwan Weighted gained 13.30 per cent, Malaysia’s KLSE Composite rose by 12 per cent and Indonesia’s Jakarta Comp increased by 6.90 per cent.
Among the Asian giants, Japan’s Nikkei 225 gained 5.10 per cent, Hong Kong’s Hang Seng advanced by 22.30 per cent and Singapore’s Straits Times gained 26.10 per cent.
The DSE data also showed among the European giants, Germany’s DAX gained 29.70 per cent in 11 months (till November) of 2012 and UK’s FTSE 100 gained 10.70 per cent.The Dow Jones Industrial Average of the USA stock market increased by 8.40 per cent during the period, the DSE data showed.Officials of the DSE said they were yet to prepare year-end global comparison.
They, however, said that the DGEN’s marginal gain in December would have no impact on the global comparison as the other major markets gained in the period.
The DGEN had risen to as high as 8,918.51 points on December 5, 2010 with a record turnover of Tk 3,249.57 crore before it crashed.
The downtrend continues till now.In 2011, the DGEN had lost 3,032 points since the market crash in late 2010.
Seventeen new securities — sixteen equity stocks and one mutual fund — raised Tk 1,186 crore from the country’s capital market through initial public offerings in 2012 but failed to perform as per the expectations of the investors.
Bangladesh Securities and Exchange Commission in November, 2011 announced a 21-point market stimulus package in line with the instruction of prime minister Sheikh Hasina to bring back normalcy to the market.The package was provided to raise liquidity supply to the market by offering institutional investors, especially banks, some incentives.Majority of the steps announced in the stimulus package had been implemented on paper and so failed to fetch the investors expected return, market operators said.
They said the government’s failure in dealing the Padma Bridge financing issue dominated the market sentiment throughout the year.They also said that the BSEC’s move to impose a mandatory 2 per cent shareholding on listed company directors and consequent legal battle also hurt the investors.A decreased participation of the financial institutions in the market amid a liquidity shortage also depressed the general investors, they added.
DSE worst performing market in 2012
Ahmed Shawki
Country’s premier bourse the Dhaka Stock Exchange was the worst performing stock market last year in comparison with the major stock markets across the globe.According to the latest DSE data, the bourse’s benchmark general index, DGEN, lost 20.26 per cent till November 2012, whereas other Asian and global indices gained during the period.
The DGEN, however, gained 62 points in December, but it lost a total 1,038 points or 19.74 per cent in 2012, stretching a bear run to the second year, according to New Age calculation.
In Asia, Pakistan’s Karachi 100 was the best performing index during the period with a gain of 36.50 per cent while India’s BSE 30 advanced by 22.60 per cent during the same period of time.
Thailand’s SET was the second best, advancing by 36.10 per cent during the period when Taiwan’s Taiwan Weighted gained 13.30 per cent, Malaysia’s KLSE Composite rose by 12 per cent and Indonesia’s Jakarta Comp increased by 6.90 per cent.
Among the Asian giants, Japan’s Nikkei 225 gained 5.10 per cent, Hong Kong’s Hang Seng advanced by 22.30 per cent and Singapore’s Straits Times gained 26.10 per cent.
The DSE data also showed among the European giants, Germany’s DAX gained 29.70 per cent in 11 months (till November) of 2012 and UK’s FTSE 100 gained 10.70 per cent.The Dow Jones Industrial Average of the USA stock market increased by 8.40 per cent during the period, the DSE data showed.Officials of the DSE said they were yet to prepare year-end global comparison.
They, however, said that the DGEN’s marginal gain in December would have no impact on the global comparison as the other major markets gained in the period.
The DGEN had risen to as high as 8,918.51 points on December 5, 2010 with a record turnover of Tk 3,249.57 crore before it crashed.
The downtrend continues till now.In 2011, the DGEN had lost 3,032 points since the market crash in late 2010.
Seventeen new securities — sixteen equity stocks and one mutual fund — raised Tk 1,186 crore from the country’s capital market through initial public offerings in 2012 but failed to perform as per the expectations of the investors.
Bangladesh Securities and Exchange Commission in November, 2011 announced a 21-point market stimulus package in line with the instruction of prime minister Sheikh Hasina to bring back normalcy to the market.The package was provided to raise liquidity supply to the market by offering institutional investors, especially banks, some incentives.Majority of the steps announced in the stimulus package had been implemented on paper and so failed to fetch the investors expected return, market operators said.
They said the government’s failure in dealing the Padma Bridge financing issue dominated the market sentiment throughout the year.They also said that the BSEC’s move to impose a mandatory 2 per cent shareholding on listed company directors and consequent legal battle also hurt the investors.A decreased participation of the financial institutions in the market amid a liquidity shortage also depressed the general investors, they added.
DSE worst performing market in 2012
Subsidy for power sector may reach Tk 8,000cr
Manjurul Ahsan
Annual requirement of subsidy for the power sector is likely to reach Tk 8,000 in financial year 2012-13 against a budget allocation of Tk 6,400 crore, officials said.
State-run Power Development Board has estimated that the board would need Tk 6,811.73 crore in subsidy for the current fiscal year for purchasing electricity from the fuel oil-fired rental plants.
The power board on Sunday placed the subsidy requirement at a meeting with the finance division headed by budget wing additional secretary Ranjit Kumar Chakraborty, a power board official told New Age.
Besides, the government has decided to subsidise the power utilities with Tk 1,000-1,200 crore instead of increasing power prices that would force utilities to incur losses after an increase of 15 per cent on an interim basis in September 2012. Bangladesh Energy Regulatory Commission, however, estimated that the five state-run power utilities would need between Tk 800 crore and Tk 1,000 crore in subsidy for one year.
But the amount of subsidy would be increased up to Tk 1,200 crore as the commission’s estimate was conservative, an energy commission official said. According to a power board report, the amount of annual subsidy in power generation has been decreased to Tk 6,811.73 crore for current fiscal year from Tk 7,214.65 crore in 2011-12.The amount of subsidy decreased as the energy commission had increased the bulk price of power by 38.38 per cent from Tk 3.31 a kilowatt-hour (unit) on an average in 2011-12 fiscal year to Tk 4.58 a unit on an average in current fiscal.
A power board official said that rental plants would eat up the entire subsidy for the generation after the September price hike.
The average cost of power generation, however, increased by 11.25 per cent from Tk 5.60 a unit in previous fiscal year to Tk 6.23 a unit in current fiscal.Total generation and purchase cost of electricity has been increased by 30.31 per cent in one financial year — from Tk 16,738.54 crore to Tk 21,811.95 crore — due to increasing dependence on rental plants.
The government will have to give the power board Tk 469 core in subsidy for power purchase from rental plants for the month of October 2012 and Tk 450 crore for November 2012. The finance ministry, however, is yet to disburse the subsidy to the power board for those months, the PDB official said.
The power board is buying electricity from 20 rental plants at rates up to Tk 22 a unit.
On the other hand, the PDB on an average spends about Tk 1.70 for generating a unit of electricity in the public-sector power plants run on gas against its average sales price to the power distribution agencies set at Tk 4.70 a unit in September 2012.
The energy commission, being pursued by the government, started increasing power prices to adjust with the growing generation cost since February 2011.
With the latest round of power price hike made in September 20 last, the commission since February 2011 has so far increased the bulk price by 98.31 per cent – from Tk 2.37 to Tk 4.70 a unit – on an average in six phases.
At the same time, the commission has also raised the retail prices by 50 per cent on an average in six phases – from Tk 4 to Tk 6 a unit – over the period.
Subsidy for power sector may reach Tk 8,000cr
Manjurul Ahsan
Annual requirement of subsidy for the power sector is likely to reach Tk 8,000 in financial year 2012-13 against a budget allocation of Tk 6,400 crore, officials said.
State-run Power Development Board has estimated that the board would need Tk 6,811.73 crore in subsidy for the current fiscal year for purchasing electricity from the fuel oil-fired rental plants.
The power board on Sunday placed the subsidy requirement at a meeting with the finance division headed by budget wing additional secretary Ranjit Kumar Chakraborty, a power board official told New Age.
Besides, the government has decided to subsidise the power utilities with Tk 1,000-1,200 crore instead of increasing power prices that would force utilities to incur losses after an increase of 15 per cent on an interim basis in September 2012. Bangladesh Energy Regulatory Commission, however, estimated that the five state-run power utilities would need between Tk 800 crore and Tk 1,000 crore in subsidy for one year.
But the amount of subsidy would be increased up to Tk 1,200 crore as the commission’s estimate was conservative, an energy commission official said. According to a power board report, the amount of annual subsidy in power generation has been decreased to Tk 6,811.73 crore for current fiscal year from Tk 7,214.65 crore in 2011-12.The amount of subsidy decreased as the energy commission had increased the bulk price of power by 38.38 per cent from Tk 3.31 a kilowatt-hour (unit) on an average in 2011-12 fiscal year to Tk 4.58 a unit on an average in current fiscal.
A power board official said that rental plants would eat up the entire subsidy for the generation after the September price hike.
The average cost of power generation, however, increased by 11.25 per cent from Tk 5.60 a unit in previous fiscal year to Tk 6.23 a unit in current fiscal.Total generation and purchase cost of electricity has been increased by 30.31 per cent in one financial year — from Tk 16,738.54 crore to Tk 21,811.95 crore — due to increasing dependence on rental plants.
The government will have to give the power board Tk 469 core in subsidy for power purchase from rental plants for the month of October 2012 and Tk 450 crore for November 2012. The finance ministry, however, is yet to disburse the subsidy to the power board for those months, the PDB official said.
The power board is buying electricity from 20 rental plants at rates up to Tk 22 a unit.
On the other hand, the PDB on an average spends about Tk 1.70 for generating a unit of electricity in the public-sector power plants run on gas against its average sales price to the power distribution agencies set at Tk 4.70 a unit in September 2012.
The energy commission, being pursued by the government, started increasing power prices to adjust with the growing generation cost since February 2011.
With the latest round of power price hike made in September 20 last, the commission since February 2011 has so far increased the bulk price by 98.31 per cent – from Tk 2.37 to Tk 4.70 a unit – on an average in six phases.
At the same time, the commission has also raised the retail prices by 50 per cent on an average in six phases – from Tk 4 to Tk 6 a unit – over the period.
Subsidy for power sector may reach Tk 8,000cr
H1 revenue falls short of target by Tk 2,655cr
Revenue collection by the National Board of Revenue fell short of the target for the first half of the current fiscal year by Tk 2,655.57 crore mainly due to failure in achieving target by VAT and customs wing of the NBR, said officials.
The overall economic slowdown in the country, sluggish trends in export and negative growth in import in July-December caused such a huge shortage in revenue collection in the period, they said.
According to NBR data released on Monday, the revenue board collected Tk 44,804.06 crore in July-December against the target of Tk 47,457.63 crore in the period.
In July-December, revenue earnings from VAT, customs duties and tax from other sources fell short by Tk 2,106.13 crore, Tk 879.36 crore and Tk 182.28 crore respectively from its target while collection from income tax succeeded its target by Tk 512.2 crore.Revenue collection in July-December, however, grew by 14.46 per cent compared with the same time of the last year but the growth is slower compared with the growth target of 18.36 per cent set by the tax administration for the entire year.
The revenue board has set a target to collect Tk 1,12,259 crore in the current fiscal year. Economists and officials of the NBR said that slow growth in revenue collection from value added tax at local level, import duties and negative growth in collection from export duty were the main reasons for such a huge shortage.
‘Slow growth in economic activities, imports, high cost of investment and contractionary monetary policy in the period resulted shortage in revenue collection,’ Mustafizur Rahman, executive director of Centre for Policy Dialogue, told New Age.
He said the momentum of revenue collection would not be increased if imports and investment were not picked up.
Slower GDP growth and stagnation in investment due to restrained credit to private sector and high interest rate took toll on revenue collection, particularly on VAT collection, he added.
The NBR will have to pay attention to increase revenue collection from income tax and find out potential sectors of VAT, he suggested.A high NBR official told New Age that the board failed to achieve the target in VAT collection as it could get less revenue from tobacco sector.Taxpayers from tobacco sector evaded huge amount of VAT taking chance of a wrong decision by the revenue board in last July, he said adding that tobacco manufacturers got chance to evade tax by hoarding huge quantity of cigarettes using the decision of delayed effectiveness of VAT-related SRO (statutory regulatory order).
The revenue earnings from export duty, supplementary duty at import levels, and supplementary duty at local levels marked a negative growth while import duty marked a poor growth over the period.Revenue collection from export duty grew by negative 27.68 per cent, supplementary duty at import levels by negative 0.49 per cent, supplementary duty at local levels by negative 1.17 per cent while import duty grew only by 4.91 per cent, the data showed.
In July-December, the NBR collected Tk 15,486.33 crore from customs duties with 7.17 per cent growth, Tk 16,205.94 crore from VAT with 12.56 per cent growth, Tk 12,815.20 crore from income tax with 27.85 per cent growth and Tk 296.59 crore from other sources with 29.92 per cent growth compared with the same time of the previous year.The target of collection was Tk 16,365.69 crore, Tk 18,312.07 crore, Tk 12,301 crore and Tk 478.87 crore from customs duties, VAT, income tax and other sources respectively in the period.
NBR officials said that the board was going to take some measures including finding out new potential sectors of VAT and widen income tax net to boost revenue collection in the remaining months of the fiscal year. It has already directed its field offices to scrutinise tax files of high-earned professionals, house owners, business house and bring those under tax net if any one remained out of the net, they said.
The NBR set a revenue collection target of Tk 40,400 crore from VAT with 17.24 per cent growth, Tk 35,600 crore from customs duties with 14 per cent growth and Tk 35,300 crore from income tax with 25 per cent growth for the current fiscal year.
H1 revenue falls short of target by Tk 2,655cr
Revenue collection by the National Board of Revenue fell short of the target for the first half of the current fiscal year by Tk 2,655.57 crore mainly due to failure in achieving target by VAT and customs wing of the NBR, said officials.
The overall economic slowdown in the country, sluggish trends in export and negative growth in import in July-December caused such a huge shortage in revenue collection in the period, they said.
According to NBR data released on Monday, the revenue board collected Tk 44,804.06 crore in July-December against the target of Tk 47,457.63 crore in the period.
In July-December, revenue earnings from VAT, customs duties and tax from other sources fell short by Tk 2,106.13 crore, Tk 879.36 crore and Tk 182.28 crore respectively from its target while collection from income tax succeeded its target by Tk 512.2 crore.Revenue collection in July-December, however, grew by 14.46 per cent compared with the same time of the last year but the growth is slower compared with the growth target of 18.36 per cent set by the tax administration for the entire year.
The revenue board has set a target to collect Tk 1,12,259 crore in the current fiscal year. Economists and officials of the NBR said that slow growth in revenue collection from value added tax at local level, import duties and negative growth in collection from export duty were the main reasons for such a huge shortage.
‘Slow growth in economic activities, imports, high cost of investment and contractionary monetary policy in the period resulted shortage in revenue collection,’ Mustafizur Rahman, executive director of Centre for Policy Dialogue, told New Age.
He said the momentum of revenue collection would not be increased if imports and investment were not picked up.
Slower GDP growth and stagnation in investment due to restrained credit to private sector and high interest rate took toll on revenue collection, particularly on VAT collection, he added.
The NBR will have to pay attention to increase revenue collection from income tax and find out potential sectors of VAT, he suggested.A high NBR official told New Age that the board failed to achieve the target in VAT collection as it could get less revenue from tobacco sector.Taxpayers from tobacco sector evaded huge amount of VAT taking chance of a wrong decision by the revenue board in last July, he said adding that tobacco manufacturers got chance to evade tax by hoarding huge quantity of cigarettes using the decision of delayed effectiveness of VAT-related SRO (statutory regulatory order).
The revenue earnings from export duty, supplementary duty at import levels, and supplementary duty at local levels marked a negative growth while import duty marked a poor growth over the period.Revenue collection from export duty grew by negative 27.68 per cent, supplementary duty at import levels by negative 0.49 per cent, supplementary duty at local levels by negative 1.17 per cent while import duty grew only by 4.91 per cent, the data showed.
In July-December, the NBR collected Tk 15,486.33 crore from customs duties with 7.17 per cent growth, Tk 16,205.94 crore from VAT with 12.56 per cent growth, Tk 12,815.20 crore from income tax with 27.85 per cent growth and Tk 296.59 crore from other sources with 29.92 per cent growth compared with the same time of the previous year.The target of collection was Tk 16,365.69 crore, Tk 18,312.07 crore, Tk 12,301 crore and Tk 478.87 crore from customs duties, VAT, income tax and other sources respectively in the period.
NBR officials said that the board was going to take some measures including finding out new potential sectors of VAT and widen income tax net to boost revenue collection in the remaining months of the fiscal year. It has already directed its field offices to scrutinise tax files of high-earned professionals, house owners, business house and bring those under tax net if any one remained out of the net, they said.
The NBR set a revenue collection target of Tk 40,400 crore from VAT with 17.24 per cent growth, Tk 35,600 crore from customs duties with 14 per cent growth and Tk 35,300 crore from income tax with 25 per cent growth for the current fiscal year.
H1 revenue falls short of target by Tk 2,655cr
Pvt sector credit growth slumps to 16.55pc in Dec
AKM Zamir Uddin
Amid lack of investment in industrial sector, the private sector credit growth in December slumped to around 16.55 per cent year-on-year, much below 18.30 per cent target set by the contractionary monetary policy of the Bangladesh Bank for July-December, 2012.
In such a tricky investment situation, the central bank announces today yet another tight monetary policy for January-June period setting a private sector credit growth at around 18.50-19 per cent, said central bank sources.
The latest provisional data of BB showed that the private sector credit growth which was 17.41 per cent in November fell further to 16.55 per cent as successive contractionary monetary policies of the central bank pushed down the demand for loans by the private sector.
The BB first took contractionary policy stance in the second half of 2011 after the private sector credit growth had increased to 25.84 per cent in 2010-2011 financial year and continued its stance to squeeze credit supply aiming to contain inflation.
But the central banks tightening of money supply has recently affected the industrial sector with the slump in import of industrial raw materials and capital machinery while banks which once faced liquidity crisis are now grappling with excess liquidity.
The BB data showed that the private sector credit growth in December had stood at Tk 4,32,668.40 crore, which was 16.55 per cent higher than that of the same month of 2011 when the figure was Tk 3,71,242.60 crore.
If the private sector credit growth has fallen to 16.55 per cent, this is not acceptable. It shows that the industries are not getting their required loans which might hit the industrial sector and employment generation thus affecting the economy, said former BB governor Salehuddin Ahmed, when his attention was drawn to the latest provisional data of BB.
The successive contractionary monetary stance has resulted in lack of fund demand of the private sector, he said adding that its now central banks responsibility to raise the demand of fund. He said that the BB was trying to tame inflation by hurting the economic growth. This will not bring good results as the non-food inflation is picking up, he said. When he was told that the BB might set a private sector credit growth target of 18.50-19 per cent in the monetary policy for January-June, Salehuddin said that the target should be increased further.
CPD executive director Mustafizur Rahman said although he had not seen the credit growth figure for December, the 7.2 per cent GDP growth target set by the government would not be achieved if the credit growth had come down to 16.55 per cent.
He said decreasing trend of import growth contributed to declining credit growth.
The commercial banks are now more cautious to disburse loan due to the Hallmark Group-Sonali Bank loan scandal, he said.Besides, the BB is reluctant to disburse loans into the non-productive sectors which also affect the private sector credit growth, he said.
He, however, said that a projected credit growth of 18.5 per cent in the upcoming monetary policy would bring a positive situation for the private sector if sufficient loans enter into the productive sector.BB officials said that the central bank was now in a tricky situation as it could not go for expansionary monetary policy in the last year of the government as it might fuel inflation.On the other hand, the credit growth should also be increased for achieving the GDP growth. The central bank will try to increase credit to productive sector in the upcoming monetary policy, said an official.
Pvt sector credit growth slumps to 16.55pc in Dec
AKM Zamir Uddin
Amid lack of investment in industrial sector, the private sector credit growth in December slumped to around 16.55 per cent year-on-year, much below 18.30 per cent target set by the contractionary monetary policy of the Bangladesh Bank for July-December, 2012.
In such a tricky investment situation, the central bank announces today yet another tight monetary policy for January-June period setting a private sector credit growth at around 18.50-19 per cent, said central bank sources.
The latest provisional data of BB showed that the private sector credit growth which was 17.41 per cent in November fell further to 16.55 per cent as successive contractionary monetary policies of the central bank pushed down the demand for loans by the private sector.
The BB first took contractionary policy stance in the second half of 2011 after the private sector credit growth had increased to 25.84 per cent in 2010-2011 financial year and continued its stance to squeeze credit supply aiming to contain inflation.
But the central banks tightening of money supply has recently affected the industrial sector with the slump in import of industrial raw materials and capital machinery while banks which once faced liquidity crisis are now grappling with excess liquidity.
The BB data showed that the private sector credit growth in December had stood at Tk 4,32,668.40 crore, which was 16.55 per cent higher than that of the same month of 2011 when the figure was Tk 3,71,242.60 crore.
If the private sector credit growth has fallen to 16.55 per cent, this is not acceptable. It shows that the industries are not getting their required loans which might hit the industrial sector and employment generation thus affecting the economy, said former BB governor Salehuddin Ahmed, when his attention was drawn to the latest provisional data of BB.
The successive contractionary monetary stance has resulted in lack of fund demand of the private sector, he said adding that its now central banks responsibility to raise the demand of fund. He said that the BB was trying to tame inflation by hurting the economic growth. This will not bring good results as the non-food inflation is picking up, he said. When he was told that the BB might set a private sector credit growth target of 18.50-19 per cent in the monetary policy for January-June, Salehuddin said that the target should be increased further.
CPD executive director Mustafizur Rahman said although he had not seen the credit growth figure for December, the 7.2 per cent GDP growth target set by the government would not be achieved if the credit growth had come down to 16.55 per cent.
He said decreasing trend of import growth contributed to declining credit growth.
The commercial banks are now more cautious to disburse loan due to the Hallmark Group-Sonali Bank loan scandal, he said.Besides, the BB is reluctant to disburse loans into the non-productive sectors which also affect the private sector credit growth, he said.
He, however, said that a projected credit growth of 18.5 per cent in the upcoming monetary policy would bring a positive situation for the private sector if sufficient loans enter into the productive sector.BB officials said that the central bank was now in a tricky situation as it could not go for expansionary monetary policy in the last year of the government as it might fuel inflation.On the other hand, the credit growth should also be increased for achieving the GDP growth. The central bank will try to increase credit to productive sector in the upcoming monetary policy, said an official.
Pvt sector credit growth slumps to 16.55pc in Dec
FDI shy
Bangladesh has failed to attract Foreign Direct Investment (FDI) at a satisfactory level due to the absence of steady political atmosphere and infrastructure, experts said.
The barriers for the FDI also include high taxation, bureaucratic tangles, lack of easy access to port, non-availability of energy and indifferent attitude in different sectors. BOI sources said so far telecom, exploration, energy, power, garments and textiles have attracted the FDI.
The recently published World FDI Report 2012 has shown that the FDI of Bangladesh decreased below one billion US dollar and its position stood in level of Nepal, Bhutan and Afghanistan. In the same time India attracted over $10 billion while Pakistan attracted $ 9.9 billion.
According to the BOI, Bangladesh's FDI crossed $1.0 billion for the first time during 2011 due the collective efforts of the government, BOI and the country's missions abroad. The sources said in recent years, FDI has come only in telecommunication, energy and power sectors which need not require enough infrastructure development.Meanwhile, many foreigners have visited the country and primarily registered within the BOI for investment, but finally they became shy to invest in Bangladesh, said professor Abu Ahmed of Dhaka University. Despite advantage of cheaper wages and availability of labour, the country can not cross FDI one billion US dollar due to lack of skilled negotiation with the foreign investors, he said.
Investors from Japan have chosen Myanmar to build an industrial park there aiming to invest $10 billion in the next five years, a member of BOI told The New Nation on Tuesday.The Japan's delegation visited Bangladesh but they could not be satisfied during talking with the high officials of different ministries, he pointed out.
BOI Executive Chairman Dr SA Samad said despite having huge prospect for attracting FDI, its inflow has slowed down due to negative attitude towards foreign investment, bureaucratic tangles and lack of infrastructure and efficient supports of energy.
Quoting Unctad report on FDI, he said, Bangladesh could still attract a good volume of foreign investment.A lot of investment still could be made in oil and gas exploration as this sector has failed to draw a large number of investors, he said.
The BOI chairman said, Bangladesh is offering attractive incentives to cent percent foreign ownership investment, which is not available in many countries of the world. Even in India, cent percent foreign investment is not allowed, he pointed out.
Foreign Investors' Chamber of Commerce and Industry President Syed Ershad Ahmed said foreign investment in Bangladesh faces a serious hurdle as there is a bureaucratic tangles, lack of easy access to port and non-availability of energy.
http://thenewnationbd.com/newsdetails.aspx?newsid=64702
Bangladesh has failed to attract Foreign Direct Investment (FDI) at a satisfactory level due to the absence of steady political atmosphere and infrastructure, experts said.
The barriers for the FDI also include high taxation, bureaucratic tangles, lack of easy access to port, non-availability of energy and indifferent attitude in different sectors. BOI sources said so far telecom, exploration, energy, power, garments and textiles have attracted the FDI.
The recently published World FDI Report 2012 has shown that the FDI of Bangladesh decreased below one billion US dollar and its position stood in level of Nepal, Bhutan and Afghanistan. In the same time India attracted over $10 billion while Pakistan attracted $ 9.9 billion.
According to the BOI, Bangladesh's FDI crossed $1.0 billion for the first time during 2011 due the collective efforts of the government, BOI and the country's missions abroad. The sources said in recent years, FDI has come only in telecommunication, energy and power sectors which need not require enough infrastructure development.Meanwhile, many foreigners have visited the country and primarily registered within the BOI for investment, but finally they became shy to invest in Bangladesh, said professor Abu Ahmed of Dhaka University. Despite advantage of cheaper wages and availability of labour, the country can not cross FDI one billion US dollar due to lack of skilled negotiation with the foreign investors, he said.
Investors from Japan have chosen Myanmar to build an industrial park there aiming to invest $10 billion in the next five years, a member of BOI told The New Nation on Tuesday.The Japan's delegation visited Bangladesh but they could not be satisfied during talking with the high officials of different ministries, he pointed out.
BOI Executive Chairman Dr SA Samad said despite having huge prospect for attracting FDI, its inflow has slowed down due to negative attitude towards foreign investment, bureaucratic tangles and lack of infrastructure and efficient supports of energy.
Quoting Unctad report on FDI, he said, Bangladesh could still attract a good volume of foreign investment.A lot of investment still could be made in oil and gas exploration as this sector has failed to draw a large number of investors, he said.
The BOI chairman said, Bangladesh is offering attractive incentives to cent percent foreign ownership investment, which is not available in many countries of the world. Even in India, cent percent foreign investment is not allowed, he pointed out.
Foreign Investors' Chamber of Commerce and Industry President Syed Ershad Ahmed said foreign investment in Bangladesh faces a serious hurdle as there is a bureaucratic tangles, lack of easy access to port and non-availability of energy.
http://thenewnationbd.com/newsdetails.aspx?newsid=64702
MPS (monetary policy statement) to hurt GDP growth: experts
Staff Correspondent
The credit growth in the private sector projected in the monetary programme for January-June is not enough to attain the GDP growth of 7.2 per cent set by the government, said economists.
Bangladesh Bank on Thursday announced the new monetary policy statement (MPS) where the central bank set an 18.5 per cent credit growth in the private sector, slightly up from its earlier projection of 18 per cent.
Former BB governor Salehuddin Ahmed told New Age on Thursday that the central bank had eased its monetary stance amid pressure from businessmen, but the policy was not sufficient for attaining the GDP growth.
He said that the latest monetary policy was a continuation of the previous contractionary monetary policies taken by the BB in the last three terms.
In the new MPS, the BB set a 20.3 per cent credit growth in the public sector which was higher than the projected credit growth in the private sector, he said.For this reason, it is expected that the policy will increase the government borrowing from the banking source, he said.
Salehuddin said, ‘18.5 per cent credit growth in the private sector is not enough to touch the GDP growth of 7.2 per cent. The BB should take a credit growth target ranging between 19 per cent and 20 per cent for the private sector to attain the expected GDP growth.’The credit growth in the public sector was required to be set at 17 per cent to 18 per cent from the earlier projection of 20.3 per cent, he said.
Dhaka University economics professor MA Taslim said that the BB had taken the new monetary policy aimed at mainly containing inflation.The broad money supply in the last few months decreased significantly which hit the private sector credit growth, he said.
‘Recent economic indicators show that it is not possible to achieve the GDP growth of 7.2 per cent,’ he said adding that the growth might be at around 6 per cent.
He expected that the private sector might face a credit crisis in the months to come due to the government borrowing as the current year, 2013, is the election year for the government. He, however, said that 18.5 per cent credit growth in the private sector would be satisfactory if the productive sector would get sufficient amount of loans.
MPS to hurt GDP growth: experts
Staff Correspondent
The credit growth in the private sector projected in the monetary programme for January-June is not enough to attain the GDP growth of 7.2 per cent set by the government, said economists.
Bangladesh Bank on Thursday announced the new monetary policy statement (MPS) where the central bank set an 18.5 per cent credit growth in the private sector, slightly up from its earlier projection of 18 per cent.
Former BB governor Salehuddin Ahmed told New Age on Thursday that the central bank had eased its monetary stance amid pressure from businessmen, but the policy was not sufficient for attaining the GDP growth.
He said that the latest monetary policy was a continuation of the previous contractionary monetary policies taken by the BB in the last three terms.
In the new MPS, the BB set a 20.3 per cent credit growth in the public sector which was higher than the projected credit growth in the private sector, he said.For this reason, it is expected that the policy will increase the government borrowing from the banking source, he said.
Salehuddin said, ‘18.5 per cent credit growth in the private sector is not enough to touch the GDP growth of 7.2 per cent. The BB should take a credit growth target ranging between 19 per cent and 20 per cent for the private sector to attain the expected GDP growth.’The credit growth in the public sector was required to be set at 17 per cent to 18 per cent from the earlier projection of 20.3 per cent, he said.
Dhaka University economics professor MA Taslim said that the BB had taken the new monetary policy aimed at mainly containing inflation.The broad money supply in the last few months decreased significantly which hit the private sector credit growth, he said.
‘Recent economic indicators show that it is not possible to achieve the GDP growth of 7.2 per cent,’ he said adding that the growth might be at around 6 per cent.
He expected that the private sector might face a credit crisis in the months to come due to the government borrowing as the current year, 2013, is the election year for the government. He, however, said that 18.5 per cent credit growth in the private sector would be satisfactory if the productive sector would get sufficient amount of loans.
MPS to hurt GDP growth: experts
From $2.9 billion to $3.05 billion, Awami League widens looting scope from Padma Bridge
After Awami League regime refusal to investigate massive corruption by minister and high ups, World Bank, ADB, JICA and IDB canceled their funding. According to news, Awami League Finance Minister AMA Muhith Monday unveiled funding plan of Padma bridge where cost has been jacked up from already inflated level of $2.9 billion to $3.05 billion. This is another massive increase in project cost widening scope of further Awami League looting at the expanse of people and national economy.
Because of Awami League corruption in Padma bridge and dilly-dallying with investigation, Bangladesh (according to GDP growth impact done by ADB) had lost at least $6.4 billion in GDP.
Although, there was no clear indication where $3.5 billion dollar will come from this will send shock through national financial system and economy which is already suffering from Awami League regime rental power plant looting/subsidy and subsequent contractionary monetary policy.
Awami League Finance Minister AMA Muhith said "First, we have to boost the revenue income, which is doing well."
In usual Awami League style Muhit has lied in front of JS as in reality revenue earning had fallen short of target and outlook for turnaround on the back of declining export and import trade is even dimmer.
Obvious questions should be asked if Bangladesh economy has that much of money to spare for such massive project then why wasted all these time and lost $6.4 billion of GDP growth?
On top of that Bangladesh main export garments is under GSP facility threats from US and EU and facing further blow after Vietnam and India signing FTA with EU.
Awami League regime had already piled up reckless foreign loans (Indian $1 billion, Russian $1.5 billion, IMF $1 billion, IDB multi billion for rental power plant fuel etc.) and allowed local business to borrow from foreign financial institutions in dollars. In coming months and year repayment of these public and private debts in dollar along with revenue earning shortfall, increasing current account deficits will have crippling effect on Bangladesh economy.
Instead of tackling these impending dangers which can sink national economy, Awami League regime is in over the top venture to expend more for more looting opportunities.
After Awami League regime refusal to investigate massive corruption by minister and high ups, World Bank, ADB, JICA and IDB canceled their funding. According to news, Awami League Finance Minister AMA Muhith Monday unveiled funding plan of Padma bridge where cost has been jacked up from already inflated level of $2.9 billion to $3.05 billion. This is another massive increase in project cost widening scope of further Awami League looting at the expanse of people and national economy.
Because of Awami League corruption in Padma bridge and dilly-dallying with investigation, Bangladesh (according to GDP growth impact done by ADB) had lost at least $6.4 billion in GDP.
Although, there was no clear indication where $3.5 billion dollar will come from this will send shock through national financial system and economy which is already suffering from Awami League regime rental power plant looting/subsidy and subsequent contractionary monetary policy.
Awami League Finance Minister AMA Muhith said "First, we have to boost the revenue income, which is doing well."
In usual Awami League style Muhit has lied in front of JS as in reality revenue earning had fallen short of target and outlook for turnaround on the back of declining export and import trade is even dimmer.
Obvious questions should be asked if Bangladesh economy has that much of money to spare for such massive project then why wasted all these time and lost $6.4 billion of GDP growth?
On top of that Bangladesh main export garments is under GSP facility threats from US and EU and facing further blow after Vietnam and India signing FTA with EU.
Awami League regime had already piled up reckless foreign loans (Indian $1 billion, Russian $1.5 billion, IMF $1 billion, IDB multi billion for rental power plant fuel etc.) and allowed local business to borrow from foreign financial institutions in dollars. In coming months and year repayment of these public and private debts in dollar along with revenue earning shortfall, increasing current account deficits will have crippling effect on Bangladesh economy.
Instead of tackling these impending dangers which can sink national economy, Awami League regime is in over the top venture to expend more for more looting opportunities.
This is really bad news for the economy of Bangladesh and also it harmful for the future of the country. Government should take all decision which are good for our country.
Thanks
Farabi
Thanks
Farabi
Revenue collection lags behind target in 7 months
The National Board of Revenue continued to struggle in revenue collection as it fell short of the target for the first seven months of the current fiscal year by Tk 2,563.18 crore.The revenue collection fell as value added tax and customs wings of the revenue board missed their targets in the period, said NBR officials.
They said that overall economic slowdown in the country, sluggish trends in export, negative growth in import, fall in earning from value added tax and disordered situation related to jurisdiction in income tax administration caused such a huge shortage in overall revenue collection in the period.
Revenue collection is also being affected due to the recent political instability in the country which created negative impact on overall economy including slowdown of export and import activities, they said.According to NBR data released on Monday, the NBR collected Tk 53,739.56 crore in July-January of the fiscal year 2012-2013 against its target of collection of Tk 56,302.74 crore.
VAT wing faced a big shortage in the period as the collection fell short by Tk 1,921.41 crore alone while customs wings lagged behind by Tk 1,068.38 crore.Income tax collection succeeded its target by Tk 650.24 crore in the period while the revenue board collected Tk 335.26 crore from other sources in the period.
For July-January, the target was Tk 19,549.12 crore, Tk 1,4531 crore, Tk 21,663.73 crore and Tk 558.89 crore for customs, income tax, VAT wings and other sources respectively.Officials said the board failed to achieve the target in VAT collection as it could get less revenue from tobacco, banking, telecom and petroleum sectors, major sources of VAT in the country.
Taxpayers from tobacco sector paid significantly less amount of VAT taking chance of a wrong decision of delayed
implementation of price hike decision in the national budget by the revenue board in last July and the cigarette manufacturers took the chance to evade tax and revenue board is still suffering, they said.
Revenue collection in July-January, however, grew by 15.13 per cent compared with the same time of the last year but the growth is slower compared with the growth target of 18.36 per cent set by the tax administration for the entire year.
Officials of the NBR said that it would be very difficult for the revenue administration to achieve the target of collecting Tk 1,12,259 crore in the fiscal year.
Another high official, however, expressed confidence in reaching the target. ‘Usually, in the middle of the fiscal year, revenue collection remained somewhat slow and get momentum at the last quarter of the fiscal year,’ he told New Age on Monday.
The board has already instructed its field offices to find out new potential sectors of VAT and widen income tax net through bringing tax evading high-income professional including doctors, lawyers, engineers, house and apartment owners to boost revenue collection in the remaining months of the fiscal year.
The NBR set a revenue collection target of Tk 40,400 crore from VAT with 17.24 per cent growth, Tk 35,600 crore from customs duties with 14 per cent growth and Tk 35,300 crore from income tax with 25 per cent growth for the current fiscal year.
Revenue collection lags behind target in 7 months
The National Board of Revenue continued to struggle in revenue collection as it fell short of the target for the first seven months of the current fiscal year by Tk 2,563.18 crore.The revenue collection fell as value added tax and customs wings of the revenue board missed their targets in the period, said NBR officials.
They said that overall economic slowdown in the country, sluggish trends in export, negative growth in import, fall in earning from value added tax and disordered situation related to jurisdiction in income tax administration caused such a huge shortage in overall revenue collection in the period.
Revenue collection is also being affected due to the recent political instability in the country which created negative impact on overall economy including slowdown of export and import activities, they said.According to NBR data released on Monday, the NBR collected Tk 53,739.56 crore in July-January of the fiscal year 2012-2013 against its target of collection of Tk 56,302.74 crore.
VAT wing faced a big shortage in the period as the collection fell short by Tk 1,921.41 crore alone while customs wings lagged behind by Tk 1,068.38 crore.Income tax collection succeeded its target by Tk 650.24 crore in the period while the revenue board collected Tk 335.26 crore from other sources in the period.
For July-January, the target was Tk 19,549.12 crore, Tk 1,4531 crore, Tk 21,663.73 crore and Tk 558.89 crore for customs, income tax, VAT wings and other sources respectively.Officials said the board failed to achieve the target in VAT collection as it could get less revenue from tobacco, banking, telecom and petroleum sectors, major sources of VAT in the country.
Taxpayers from tobacco sector paid significantly less amount of VAT taking chance of a wrong decision of delayed
implementation of price hike decision in the national budget by the revenue board in last July and the cigarette manufacturers took the chance to evade tax and revenue board is still suffering, they said.
Revenue collection in July-January, however, grew by 15.13 per cent compared with the same time of the last year but the growth is slower compared with the growth target of 18.36 per cent set by the tax administration for the entire year.
Officials of the NBR said that it would be very difficult for the revenue administration to achieve the target of collecting Tk 1,12,259 crore in the fiscal year.
Another high official, however, expressed confidence in reaching the target. ‘Usually, in the middle of the fiscal year, revenue collection remained somewhat slow and get momentum at the last quarter of the fiscal year,’ he told New Age on Monday.
The board has already instructed its field offices to find out new potential sectors of VAT and widen income tax net through bringing tax evading high-income professional including doctors, lawyers, engineers, house and apartment owners to boost revenue collection in the remaining months of the fiscal year.
The NBR set a revenue collection target of Tk 40,400 crore from VAT with 17.24 per cent growth, Tk 35,600 crore from customs duties with 14 per cent growth and Tk 35,300 crore from income tax with 25 per cent growth for the current fiscal year.
Revenue collection lags behind target in 7 months
Rental power plant hazards compel govt to go for addl subsidy on fuel
Published : Friday, 01 March 2013
Import of reconditioned plants, faulty contracts with the government and frequent shutdowns of most of the quick rental power plants have forced the government to count a total of Tk 30 billion's worth extra subsidy on fuel in the last two fiscal years (FY), officials said.
The government had estimated that it would have required about Tk 90 billion subsidy on fuel, but in the last two fiscals of 2010-11 and 2011-12 the subsidy amount crossed Tk 120 billion due mainly to faulty rental contracts, sources at the Bangladesh Power Development Board (BPDB) said.
Md.Shamsul Hassan Miah, Director, IPP Cell of Bangladesh Power Development Board, told the FE that there remained some loopholes in the government's contracts with the rental power plant operators.
Most of these plants consumed more fuel than had been estimated due mainly to allowing old equipment, that forced their frequent shutdowns, Md.Shamsul Hassan Miah said.
"The contracts signed by BPDB with private companies did not mention as to how many times the rental power plants could be shut a day. Since many of the plants are reconditioned ones, they require frequent closures due to technical reasons, which results in extra fuel consumption," he commented.
According to the Finance Ministry's latest estimate, the government would have to pay subsidy on fuel to the tune of Tk 63.30 billion for the current fiscal 2012-2013.
The plants are provided with fuel at a subsidised rate and the end product is purchased at an exorbitant price.
Last year, the government had to pay, by way of rent, a whooping Tk 26.97 billion to 12 rental and 15 quick rental plants. The contracts with these plants are for two to five years -- mostly expiring in 2013.
State Minister for Energy and Mineral Resources Minister Mohammad Enamul Haq said BPDB was paying Tk 18.45 for per unit electricity to diesel-run plants, Tk 15.60 to furnace oil-run plants and Tk 4.76 to natural gas-run plants.
The cost of power generation, which was around Tk 2.5 per kilowatt hour or a unit back in 2009, has now gone up close to Tk 6 due to power generation by rental plants.
In the current fiscal year, the government will have to import over 80 lakh tonnes of petroleum against 74.0 lakh tonnes in 2011-12, 68.9 lakh tonnes in 2010-2011 and 21.50 lakh tonnes in 2009-2010 fiscal, according to an estimate by the Finance Division.
As part of its 'crash programme' to set up power generation plants having a total capacity of 7,000 MW during the next five years, the government in October 2009 undertook the rental, quick rental and peaking plants to address the nagging power crisis.
The quick rental projects were supposed to add about 2,000 MW of electricity to the national grid. Due to delayed installation and less than the projected production, the majority of the power plants, contracted to be on quick rental method, are reportedly failing miserably causing huge financial losses to the national exchequer.
Rental power plant hazards compel govt to go for addl subsidy on fuel :: Financial Express :: Financial Newspaper of Bangladesh
Published : Friday, 01 March 2013
Import of reconditioned plants, faulty contracts with the government and frequent shutdowns of most of the quick rental power plants have forced the government to count a total of Tk 30 billion's worth extra subsidy on fuel in the last two fiscal years (FY), officials said.
The government had estimated that it would have required about Tk 90 billion subsidy on fuel, but in the last two fiscals of 2010-11 and 2011-12 the subsidy amount crossed Tk 120 billion due mainly to faulty rental contracts, sources at the Bangladesh Power Development Board (BPDB) said.
Md.Shamsul Hassan Miah, Director, IPP Cell of Bangladesh Power Development Board, told the FE that there remained some loopholes in the government's contracts with the rental power plant operators.
Most of these plants consumed more fuel than had been estimated due mainly to allowing old equipment, that forced their frequent shutdowns, Md.Shamsul Hassan Miah said.
"The contracts signed by BPDB with private companies did not mention as to how many times the rental power plants could be shut a day. Since many of the plants are reconditioned ones, they require frequent closures due to technical reasons, which results in extra fuel consumption," he commented.
According to the Finance Ministry's latest estimate, the government would have to pay subsidy on fuel to the tune of Tk 63.30 billion for the current fiscal 2012-2013.
The plants are provided with fuel at a subsidised rate and the end product is purchased at an exorbitant price.
Last year, the government had to pay, by way of rent, a whooping Tk 26.97 billion to 12 rental and 15 quick rental plants. The contracts with these plants are for two to five years -- mostly expiring in 2013.
State Minister for Energy and Mineral Resources Minister Mohammad Enamul Haq said BPDB was paying Tk 18.45 for per unit electricity to diesel-run plants, Tk 15.60 to furnace oil-run plants and Tk 4.76 to natural gas-run plants.
The cost of power generation, which was around Tk 2.5 per kilowatt hour or a unit back in 2009, has now gone up close to Tk 6 due to power generation by rental plants.
In the current fiscal year, the government will have to import over 80 lakh tonnes of petroleum against 74.0 lakh tonnes in 2011-12, 68.9 lakh tonnes in 2010-2011 and 21.50 lakh tonnes in 2009-2010 fiscal, according to an estimate by the Finance Division.
As part of its 'crash programme' to set up power generation plants having a total capacity of 7,000 MW during the next five years, the government in October 2009 undertook the rental, quick rental and peaking plants to address the nagging power crisis.
The quick rental projects were supposed to add about 2,000 MW of electricity to the national grid. Due to delayed installation and less than the projected production, the majority of the power plants, contracted to be on quick rental method, are reportedly failing miserably causing huge financial losses to the national exchequer.
Rental power plant hazards compel govt to go for addl subsidy on fuel :: Financial Express :: Financial Newspaper of Bangladesh
By pursuing indian instructed secular attack on Islam and Islamic value Awami League destroyed Bangladesh manpower market in Saudi Arabia. Killing of Saudi diplomat along with attack on Islamic values further destroyed any chance of recruitment to largest market. This is how Awami League destroying Bangladesh economy and prospect.
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BD falls out of Saudi support for labour export: Economist
Published : Thursday, 28 March 2013
"As long as relations are what they are with the Saudis, Bangladesh must keep scrambling to find alternative venues for its migrant labourers. If Pakistan's remittances should flourish in the meantime, then so much the better, as far as Saudi retribution is concerned."
This is what the London-based internationally prestigious magazine, 'The Economist', wrote in its latest issue which was posted on its website, Banyan | The Economist.
The comment, titled Bangladesh and Saudi Arabia, revenge of the migrants' employer?: said: "Bangladesh appears somehow to have fallen out of favour as a source of labour with the Saudis. Last month, Saudi Arabia was reported to be pondering whether to resume its full-scale hiring of Bangladeshi workers. But nobody really thinks it will happen. Saudi Arabia silently disapproves of the imminent hangings of the leadership of the Jamaat-e-Islami, the religious party that serves as a standard-bearer for its strand of Islam in Bangladesh. It grudgingly recognised Bangladesh as an independent country only after the assassination of the country's first prime minister, Sheikh Mujibur Rahman, in 1975. Sheikh Mujib is revered by his countrymen for having won the independence of Bangladesh, or East Pakistan, from what had been West Pakistan, in 1971. His death paved the way for the return of religion-based parties, which had been banned by Bangladesh's 1972 constitution."
It added: "The current prime minister, Sheikh Hasina, who is Sheikh Mujiib's daughter, has brought back an explicitly secular constitution under which religious politics has no space. It will not have escaped the Saudis' notice that Bangladesh's foreign minister likened the Jamaat, a close ally of theirs, to a terrorist organisation in a briefing with diplomats in Dhaka on March 7th. (Her office forwarded it along to journalists the same day.) Meanwhile, Sheikh Hasina's government is weighing whether it ought to go the whole distance and ban the Jamaat."
Full Report:
BD falls out of Saudi support for labour export: Economist :: Financial Express :: Financial Newspaper of Bangladesh
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BD falls out of Saudi support for labour export: Economist
Published : Thursday, 28 March 2013
"As long as relations are what they are with the Saudis, Bangladesh must keep scrambling to find alternative venues for its migrant labourers. If Pakistan's remittances should flourish in the meantime, then so much the better, as far as Saudi retribution is concerned."
This is what the London-based internationally prestigious magazine, 'The Economist', wrote in its latest issue which was posted on its website, Banyan | The Economist.
The comment, titled Bangladesh and Saudi Arabia, revenge of the migrants' employer?: said: "Bangladesh appears somehow to have fallen out of favour as a source of labour with the Saudis. Last month, Saudi Arabia was reported to be pondering whether to resume its full-scale hiring of Bangladeshi workers. But nobody really thinks it will happen. Saudi Arabia silently disapproves of the imminent hangings of the leadership of the Jamaat-e-Islami, the religious party that serves as a standard-bearer for its strand of Islam in Bangladesh. It grudgingly recognised Bangladesh as an independent country only after the assassination of the country's first prime minister, Sheikh Mujibur Rahman, in 1975. Sheikh Mujib is revered by his countrymen for having won the independence of Bangladesh, or East Pakistan, from what had been West Pakistan, in 1971. His death paved the way for the return of religion-based parties, which had been banned by Bangladesh's 1972 constitution."
It added: "The current prime minister, Sheikh Hasina, who is Sheikh Mujiib's daughter, has brought back an explicitly secular constitution under which religious politics has no space. It will not have escaped the Saudis' notice that Bangladesh's foreign minister likened the Jamaat, a close ally of theirs, to a terrorist organisation in a briefing with diplomats in Dhaka on March 7th. (Her office forwarded it along to journalists the same day.) Meanwhile, Sheikh Hasina's government is weighing whether it ought to go the whole distance and ban the Jamaat."
Full Report:
BD falls out of Saudi support for labour export: Economist :: Financial Express :: Financial Newspaper of Bangladesh
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