How low revenue collection hampers debt management in Bangladesh | Shankar Kumar Das FCA, FCMA posted on the topic | LinkedIn (2024)

7

8

I got Fellow Membership in Institute of Cost and Management Accountants of Bangladesh.

19

8 Comments

https://lnkd.in/gGkXj8YR

https://lnkd.in/gvgPn3u4

Align with WTO rules and graduation to middle-income country (through tariff rationalization):1. Reduced/Eliminated Duties (SD & RD): Up to 300 goods may see reduced or eliminated duties (SD & RD), potentially including packaged powdered milk (to address tax gap vs. bulk).2. Bound Tariffs: 10 products may be brought under WTO's bound tariff system.3. Tax Cuts for Raw Materials:PTA/MEG for textiles: 25% & 10% down to 1% each.Polypropylene yarn (carpets): 10% down to 5%.Raw materials for various uses (medicine, varnish, etc.): 10% down to 5%.4. Tax Increases for Finished Goods (to address misdeclaration):Sardines/mackerel: 33% up to 58.60%.Chocolates (and similar): 127.72% down to 89.32%.5. Other:Laptop import tax: 31% down to 20.50%.Aviation sector: Potential VAT waiver on aircraft engine/propeller imports.Note: These are proposals. Specific tax rates may differ in the official budget announcement.

3

1 Comment

Budget for upcoming fiscal year 2024-25:Positive Outlook:1. The Bangladeshi government expects a boost in exports due to a gradual global economic rebound.2. Improved economic conditions in major economies like the Eurozone and US could lead to a rebound in both imports and exports.3. The World Trade Organization (WTO) forecasts a rise in global goods trade, potentially increasing demand for Bangladeshi goods.4. Long-term economic goals are set, including higher growth, poverty alleviation, and infrastructure development.5. The UN's Sustainable Development Goals (SDGs) are included in the national plans.Challenges and Risks:1. High-interest rates and currency depreciation in major economies could pose downside risks.2. Global economic volatility due to geopolitical conflicts, commodity prices, and climate change creates uncertainty.3. Achieving long-term economic targets like becoming an upper-middle-income country by 2031 might be delayed.4. Macroeconomic instability and structural problems need to be addressed.Expert Opinion:Ahsan H. Mansur Sir, an economist, is cautiously optimistic about achieving export growth targets. He emphasizes addressing both macroeconomic instability (through interest rate adjustments) and structural issues (revenue mobilization, bank governance) for long-term success.Overall:The upcoming fiscal year presents Bangladesh with both opportunities and challenges. While a global rebound could propel exports, global uncertainties pose risks. Addressing economic vulnerabilities and structural problems will be crucial for achieving long-term economic goals.

8

1 Comment

New Customs Act to be effective from June 06:This law, the Customs Act-2023, replaces the 55-year-old Customs Act-1969 and boasts features aligned with international best practices and a simplified goods clearance process.1. Green Channel Clearance:Old Act (1969): Businesses relied on traditional customs assessment for clearance.New Act (2023): Introduces "self-clearance" allowing businesses to declare goods under a specific method for faster clearance through the green channel.2. Voluntary Disclosure:Old Act (1969): No specific provision for voluntary disclosure of goods.New Act (2023): Businesses can avoid penalties for undeclared goods if they disclose details before customs investigation.3. Amending Customs Rules:Old Act (1969): Amending detailed customs compliances likely required parliamentary approval.New Act (2023): NBR can amend detailed compliances in the Customs Rules with the finance minister's consent, offering more flexibility.4. International Best Practices:Old Act (1969): May not have been fully aligned with international best practices.New Act (2023): Accommodates binding provisions of WTO's TFA and incorporates best practices outlined by WCO (e.g., authorized economic operator, electronic declaration, etc.).5. Discretionary Power:Old Act (1969): Potentially more discretionary power for field-level customs officials.New Act (2023): Empowers central NBR authority for decisions, potentially reducing field-level discretion.6. Penalties:Old Act (1969): Unclear on penalties for late duty/tax payment.New Act (2023): Introduces a 10% annual penalty for late payment of duties and taxes, with double penalty for repeat offenses. However, the number of offenses is reduced.7. Stakeholder Consultation:Old Act (1969): Unclear level of stakeholder consultation.New Act (2023): NBR conducted awareness sessions. 8. Other Considerations:Extends the timeline for claiming duty/tax refunds from 3 months to 3 years.

8

1 Comment

https://lnkd.in/gwYQ9DSp

1