Govt turns down IMF proposal for VAT Act roadmap notice

The ministry of finance has turned down a proposal of the IMF on issuance of a gazette notification by December outlining a timeframe for implementing the VAT Act as the move triggered a furor among business community. The firm stance of the finance ministry has been conveyed to the multilateral lending agency last week as Prime Minister Sheikh Hasina has not approved a proposal to implement the new value added tax–2012 from July 2016 as asked by the IMF, a senior finance official said.
This latest position of the government, largely to serve the interests of the business community, has made disbursement of the remaining two installments of ECF fund worth around US$ 270 million uncertain, the official added.
‘We cannot commit now through any official notice on implementing VAT act from July, 2016 as Prime Minister Sheikh Hasina did not approve the move,’ the senior finance ministry official told New Age on Wednesday.
He, however, said they had been relentlessly trying to convince the International Monetary Fund that without taking into consideration the views of the business community, no democratic government can pursue any reforms involving revenue matters.
As a pre-condition to releasing the last two installments of the extended credit facility, the IMF has asked the finance ministry to announce the revised launch date of July 2016 for the new VAT act by issuing a gazette notification, publishing the combined tender for the procurement of the software and hardware to enable introduction of new VAT mechanism and a formal approval by finance minister AMA Muhith by the end of this year.
The officials at the finance ministry said they had already asked the National Board of Revenue to ensure faster procurement of software for introducing the new VAT act. However, the government was not in a position to commit any timeframe for the VAT implementation, he added.
Meanwhile, the IMF has deferred the release of the sixth installment of US$ 1 billion loan to next year after the government failed to lay out a fresh roadmap for implementing the new VAT act, sources confirmed.
The sixth installment — around US$ 135 million — had been scheduled for release in November, officials said.
The new VAT and SD law (VAT law), passed by parliament in November 2012, is scheduled to take effect on July 1, 2015.
Under the new VAT law, existing package of VAT and truncated system of VAT and tariff value system to determine the VAT amount would no longer exist, and be replaced by uniform 15 per cent VAT.
However, small and medium enterprises with Tk 24 lakh or below annual turnover will remain out of the purview of the new VAT system.

-With New Age input

Related News

Chattogram port became 64th busiest port in the world

Business Desk : dhakamirror.com According to Lloyd’s List, one of the oldest shipping periodicals in the world, the Chattogram port has advanced three spots to become the 64th busiest port among the top 100 container ports in the world in terms of yearly container transport in 2021.The port occupied the 67th spot on the list ... Read more

Norway’s Jotun inaugurates its first factory in Bangladesh

Business Desk : dhakamirror.com A subsidiary of the Norwegian-based Jotun Group, which produces paint and coatings, Jotun Bangladesh Limited (JBL) has invested $7.6 million to open its first plant inside the Meghna Industrial Economic Zone (MIEZ).Jotun Group, with operations in more than a hundred countries is one of the top manufacturers of paints and coatings ... Read more

Biman to fly to China for first time tomorrow

Business Desk : dhakamirror.com Biman Bangladesh Airlines will start running flights on the Dhaka-Guangzhou-Dhaka route from tomorrow, expanding its list of overseas destinations having included China. Managing Director and CEO of Biman Bangladesh Airlines Md. Zahid Hossain and Chinese Ambassador to Bangladesh Li Jiming met on Tuesday at the Chinese Embassy in Dhaka to discuss ... Read more

New MD appointed to state-owned Sonali, Agrani, Rupali banks

Business Desk : dhakamirror.com The government appointed new Managing Directors to Sonali Bank, Rupali Bank and Agrani Bank. The Ministry of Finance’s Financial Institution Division issued three separate circulars regarding the appointments on Sunday. Afzal Karim, managing director of Bangladesh House Building Finance Corporation, has been appointed as the chief executive officer (CEO) and managing ... Read more

Pacific jeans installs rooftop solar power plant

Business Desk : dhakamirror.com A rooftop solar power plant with automatic cleaning system and a capacity of 3.5mw per day has been installed at Universal Jeans Ltd, a concern of Pacific Jeans, at the Chattogram EPZ, at a cost of $0.5 million as part of its green energy initiative. This 3.5mw electricity will meet 10% ... Read more

Bangladesh sets stagger industry holidays amid energy crisis

Business Desk : dhakamirror.com To lessen the frequency and duration of power outages in the midst of an ongoing energy crisis, the Bangladeshi government has established staggered weekly holidays for industrial hubs. A notification establishing the area-wise weekly off was published by the Department of Inspection for Factories and Establishments under the Ministry of Labour ... Read more

BCCCI signs MoU with BIAC

Business Desk : dhakamirror.com The Bangladesh China Chamber of Commerce and Industry (BCCCI) and Bangladesh International Arbitration Centre (BIAC) signed a memorandum of understanding (MoU) in Dhaka on Wednesday. Kaiser A Chowdhury, chief executive officer of the BIAC, and Al Mamun Mridha, acting secretary general of the BCCCI, signed the deal at the BIAC secretariat ... Read more

HSBC facilitates social loan financing for Brac

Business Desk : dhakamirror.com In a recent program, the Hongkong and Shanghai Banking Corporation (HSBC) in Bangladesh facilitated social loan financing for brac. In accordance with the agreement, HSBC will provide money to BRAC in the amount of Tk 6.12 billion to carry out social development projects, said a press release. This is the country’s ... Read more

StanChart’s first automated over-the-weekend loan for Nestlé Bangladesh

Business Desk : dhakamirror.com In accordance with its distributor finance program, Standard Chartered Bangladesh has completed the country’s first automated over-the-weekend loan disbursement, according to a press release. The first client to receive the funds from a distributor financing loan on a weekend was Nestle Bangladesh, This enhancement will empower distributors, which are usually small ... Read more

Bangladesh’s Meghna Aviation orders 2 Bell helicopters to purchase

Business Desk : dhakamirror.com Meghna Aviation Ltd. in Bangladesh has inked a contract to buy two Bell helicopters—a Bell 505 and a Bell 407GXi—according to a statement from Bell Textron. Meghna Aviation was founded in 2011 which is a member of the Meghna Group of Industries, a significant conglomerate with headquarters in Bangladesh that employs ... Read more

HSBC to introduce Female Entrepreneur Fund in Bangladesh today

Business Desk : dhakamirror.com Hongkong and Shanghai Banking Corporation (HSBC) will introduce the “Female Entrepreneur Fund (FEF)” in Bangladesh today as part of its global commitment for assisting female entrepreneurs. According to a news release, the program’s goal is to enhance financial literacy, networking, and funding for women entrepreneurs in Bangladesh through the FEF project. ... Read more

First female head of retail banking at HSBC

Tanmi Haque has been appointed Country Head of Retail Banking, HSBC Bangladesh, effective from Monday. Tanmi succeeds Ahmed Saiful Islam who is moving to a new regional role in Hongkong within the bank according to a press release. Before joining HSBC, Tanmi was Head of Priority and Wealth, Standard Chartered Bank and has also worked ... Read more

Nova Intima will put $28 million into Bepza Economic Zone

Business Desk : dhakamirror.com The manufacturer of women’s underwear Nova Intima signed a contract yesterday with the Bangladesh Export Processing Zones Authority (Bepza) to invest $28 million in the Mirsharai Bepza economic zone of Chattogram. With this investment, 60 million units of underwear and related materials and accessories will be produced yearly, resulting in 5,625 ... Read more

vivo launches short film contest to win X80

vivo has recently announced ‘Visual Creator Short Film Contest’ in Bangladesh and winners will get its latest X-series smartphone vivo X80, said a press release. The smartphone, released recently, was used to shoot a short film titled ‘Chakrakar’ starring Afsana Mimi, Yash Rohan and Nova Firoze. The competition will take place from June 15 to ... Read more

RAK Ceramics will establish bathroom accessories plant

According to business executives, RAK Ceramics (Bangladesh) would invest Tk 95 crore to build a bathroom fittings plant with the ability to create 1,500 faucets, shower heads, and all other relevant accessories in an effort to offer less expensive alternatives to imports. On Thursday, the listed international ceramics company announced its choice in a filing ... Read more

Syngenta Bangladesh appoints new country general manager

Mohammad Hedayet Ullah was recently promoted by Syngenta Bangladesh to the position of country general manager. Hedayet Ullah will simultaneously assume the role of a member of the Syngenta Asia Group Leadership Team, according to a press release, Hedayet replaces AMM Golam Towhid, who has been appointed as regional commercial operations lead for new farming ... Read more

Brac Bank raises Astha fund transfer limits

Brac Bank has enhanced the fund transfer limits on its Astha mobile app and Astha web interface to provide customers with a better digital banking experience.Account to account transfer limits in Astha has been increased to Tk 10 lakh daily. These new limits are applied to all four types of transfers – other bank transfers ... Read more

Electro Mart rolls out new Konka TVs

Electro Mart, a leading consumer electronics company in Bangladesh, recently unveiled new models of Konka android voice-control televisions at the group’s corporate office in Gulshan, Dhaka, according to a press release.

Elon Musk cancels $44 billion Twitter agreement

Business Desk : dhakamirror.comThe CEO of Tesla and richest man in the world, Elon Musk, said that he was canceling his $44 billion agreement to purchase Twitter. According to Musk, the social media business violated numerous terms of the merger agreement, and as a result, the deal is being terminated. On the other hand. Twitter ... Read more

286 ISPs will be unplugged

Business Desk : dhakamirror.comFor failing to transfer their licenses in compliance with regulations, the telecom regulator has ordered International Internet Gateway (IIG) service providers to unplugged bandwidth connections of 286 internet service providers (ISP).The existing ISP licensees were required to convert their existing licenses to four new categories by December 2021 in accordance with the ... Read more