Manufacturing sector to get tax facilities in next budget: NBR

[Black_cats]

Manufacturing sector to get tax facilities in next budget: NBR

http://www.bssnews.net/newsDetails.php?cat=2&id=737423&date=2018-04-18

DHAKA, April 18, 2018 (BSS)- Country's manufacturing sector will be given tax facilities in the upcoming budget for fiscal year 2018-19 (FY19) as part of the government's plan for expansion of the local industrial sector, said NBR chairman Md Mosharraf Hossain Bhuiyan.

"We want to give tax facilities to some more sectors in the next budget as such facilities in the past helped boost production and exports in some sectors. Budget will be prepared this time offering tax facilities for manufacturing sector," said the National Board of Revenue (NBR) while speaking at pre-budget talks here today.

Representatives from different organisations in the electronics and electrical, computer and ICT and telecommunication sectors joined the pre- budget talks held at the NBR's Segunbagicha office.

Bhuiyan said priority will be given to protect the local industries.

Those who are flooding local market with imported substandard products need to be controlled, he said, adding, "We want to protect local industries by giving them tax facilities".

Hinting at cutting the corporate tax, the NBR chairman said businesspeople are requesting to cut corporate tax saying that it will not only help boost revenue income but discourage tax dodging.

"We're thinking to do something in this regard . . . we'll try to adjust all these," he added.

The NBR chairman disagreed with the claim of the Centre for Policy Dialogue (CPD) that there will be a shortfall of Taka 50,000 crore in revenue mobilization in the current fiscal (FY18) and said there will be a shortfall in revenue collection but it will not be so high.

"NBR has a target to collect Taka 2.48 lakh crore and the collection trend in the last nine months of the current fiscal year (FY18) was comparatively good," he added.

Mobile phone importers' association president Md Ruhul Alam Al Mahbub said Bangladesh is on the way of becoming mobile set manufacturer and demanded withdrawal of existing import duty (ranging from one percent to 10 percent) on the mobile set manufacturing raw materials.

In reply, Bhuiyan said the NBR is encouraging manufacturing sector and facilities will be offered in this sector through formulating a policy.

President of Bangladesh Association of Software and Information Services (BASIS) Syed Almas Kabir demanded withdrawal of Value Added Tax (VAT) on the use of internet at all level.

He also proposed to give software developers and ICT service providers tax exemption certificate for the next five years.

At present, software developers and ICT service providers have to collect tax exemption certificate every year.

 

[Mage]

@Nilgiri, is this what you were talking about?

 

[Nilgiri]

@Nilgiri, is this what you were talking about?

Sort of, but the focus here seems to be on corporate tax level (i.e final revenue accumulation) or some other tax "facilities" rather than excise (production at source/market).

The last one is really what BD needs to do given it is a direct physical brake (and pretty common sense + easy to remove), a major reform would be to bring it all to 0 or as close to that as possible tbh (comapred to corporate tax where you can only do some piecemeal reduction...and then launder change somewhere else by reducing incentives etc...i.e keep effective tax rate the same).

Some (because BD tax policy documentation is a nightmare and thus susceptible to local bureaucrats rather than highest federal govt promises/policy) excises effectively (defacto, everything factored in) are in the 20+% level, ranging up to 50% and effectively even 100% I have heard....and its basic basic component stuff that BD ought to just supply the most it can (and import what it cant with near 0 tariff there) so that you get all the assembly MVA you can gather now. Essentially pass on the strategy (internally) for all industry you can manage....of what LDC quota countries are giving you externally for RMG.

BD has to shape up its bureaucracy before the high level promises mean something imho. This is how TN for example got stuff done in the 80s and 90s (before the automotive sector, textiles etc really took off), its state govt top echelon largely were crooked corrupt creatures (and still are to large degree) but it invested in the bureaucracy delivery (industrial, socio-economic or otherwise)....by convincing they (bureaucrats) profit more long term (growing cake more than the lower % skim extraction etc) by making short term sacrifices (in their perspective) and delivery based reforms for say a decade or two (they are long term careers anyway, whether nepotism factored in or not)....and once the merit based officers were pushed in to accomplish this, they took on a inertia of their own. The thing that really prompted this was an intense rivalry between two halves of what used to be a united local state party...it was a race to deliver on the ground more than the other....as bad as they all are still in the top cream layer. But BD does not seem to have this drive from what I heard....it needs to experiment and change more...maybe it needs both BAL and BNP to fracture into halves I really dont know.

@Tanveer666 @Joe Shearer

 

[Joe Shearer]

@Mage
@Nilgiri
@Tanveer666

That Tamil Nadu example is an excellent one. It is well worth looking up and dissecting. I wonder why we can't discuss it and similar in a less hostile environment.

 

[Nilgiri]

@Mage
@Nilgiri
@Tanveer666

That Tamil Nadu example is an excellent one. It is well worth looking up and dissecting. I wonder why we can't discuss it and similar in a less hostile environment.

Let's see if @Mage and I have a nice convo on it here if he is interested (that Mao/autocracy one was really quite good I have to say). It will take me time to back up with sources and such, this is more from what I have garnered talking to people in the know.

I am hoping to improve the quality of this subforum (less hostile all around etc) and hopefully attract the good quality overall discussions over time, given the sad rising tide of bleh happening all around it....this one was at one point the lowest quality arguably....now it has hope to be one of the better ones I think. Let's see.

 

[Tanveer666]

The thing that really prompted this was an intense rivalry between two halves of what used to be a united local state party...it was a race to deliver on the ground more than the other....as bad as they all are still in the top cream layer. But BD does not seem to have this drive from what I heard....it needs to experiment and change more...maybe it needs both BAL and BNP to fracture into halves I really dont know.

So, essentially, 2 opposing parties with a "long term" vision decided to improve tamil nadu's economy (in their own term) so that not only they could show the people that prosperity is guaranteed under their reign ( so they get re elected) but also when the economy really started rolling they could rake in big $$$'s.



In an ideal scenario, where fair election was guaranteed in BD this might have worked.

 

[Nilgiri]

So, essentially, 2 opposing parties with a "long term" vision decided to improve tamil nadu's economy (in their own term) so that not only they could show the people that prosperity is guaranteed under their reign ( so they get re elected) but also when the economy really started rolling they could rake in big $$$'s.

Yes its all about convincing the grubby scum that they can get an even bigger piece of the pie (than they have at the moment) if they play long term. Nothing quite does that like an intense political battle/fallout (but also ensuring that there was enough fair elections for people to pit them against each other for results i.e jobs and delivery-oriented social programs)....in this case both were fighting for legacy of the founding father original party (before the split)....ideologically they were both more or less the same (both at various times allied with and against BJP/congress etc nationally depending on relevant federal issues/optics). Both parties basically quickly figured out they had to improve the delivery (after taking their corruption "cut") so at least that got transferred to long term popularity/votes etc. Basically how democracy is ultimately supposed to hedge.

Mind you it was still pretty bad results overall (esp compared to if everything went perfect/sound), but there was some definite improvement...and the bureaucracy functions better than most places I have seen in India....at worst the "cost" of corruption is largely baked in and constant....so people know the market rate pretty well of getting something done/delivered w.r.t the bargaining power they have electorally or otherwise too.

So whatever in the region (and world more largely) can get bureaucracy to improve (on at least a few focused things that hopefully spur change elsewhere over time) rather than just rely on optical need to change the head honchos (which is the duopoly cartel game they personally see as close to perfect) should be the goal. That sometimes happens by chance, but I hope people can learn how it happens and not be content with status quo where they are hopefully. To get better choice, you need genuine competition, it applies in politics too.

 

[Joe Shearer]

Let's see if @Mage and I have a nice convo on it here if he is interested (that Mao/autocracy one was really quite good I have to say). It will take me time to back up with sources and such, this is more from what I have garnered talking to people in the know.

I am hoping to improve the quality of this subforum (less hostile all around etc) and hopefully attract the good quality overall discussions over time, given the sad rising tide of bleh happening all around it....this one was at one point the lowest quality arguably....now it has hope to be one of the better ones I think. Let's see.

No doubt about it, the two of you have done a good great job. Now you need to get the other good people on board.