Banks will remain open tomorrow to help people pay their taxes, according to a Bangladesh Bank circular issued yesterday.

The order for all major branches of banks at districts and divisional cities came following a request from the National Board of Revenue.

The revenue authority will also keep tax offices open to give taxpayers one more day to submit their returns.

The move comes as the deadline for tax return submission ends on Sunday, while many taxpayers are yet to submit returns facing difficulties in finding their respective tax circles.

Taxpayers faced troubles after the NBR expanded its tax circles to 649 from 303 by increasing its zones to drive more people into the tax net.

The tax offices will remain open from 9am to 5pm tomorrow. The offices will also stay open until Sunday evening.

News: The Daily Star/Bangladesh/29-Sep-12

Social Islami Bank Limited (SIBL) made a distinctive banking arrangement with United Bank UK in London to provide unique banking services to expatriate Bangladeshi nationals living in UK for sending their money home through using United Bank UK’s fast and efficient payment channels like internet/web based banking systems including visiting their branch outlets and correspondent networks across the country, says a press release. Muhammed Ali, manzaging director of Social Islami Bank Limited, and Mansoor M Khan, chief executive officer of United Bank Uk, signed the agreement at the London office of United Bank Uk.
A.M.M. Farhad, deputy managing director of Social Islami Bank Limited, and the senior executives of United Bank Uk were also present.

News: The Daily Star/Bangladesh/28-Sep-12

A World Bank team will arrive in Dhaka on Monday to formulate a framework of an agreement for new implementation arrangements for Padma bridge project and also investigation into the alleged corruption in the project.

Jack Stein, the bank's South Asia director for sustainable development, will lead the delegation of three to four members, a finance ministry official said.

The framework of the agreement will include the function of the WB panel that will monitor the Anti-Corruption Commission investigation, how the project will be implemented and when the construction will start, the official added.

The finance minister may brief the media on Sunday before the team starts its work.

News: The Daily Star/Bangladesh/28-Sep-12

The IMF may defer the disbursement of the second instalment of its $1 billion loans for Bangladesh if the government does not fulfil all the related conditions, the lender said.

An IMF mission conveyed this message to the government as some of the major conditions were not met yet.

The team left Dhaka yesterday after reviewing the implementation of the conditions and holding talks with the government for two weeks.

The second instalment or $141 million was supposed to be released by November.

A finance ministry official said the team of the International Monetary Fund expressed dissatisfaction at the amended draft of the VAT law and Banking Company Act.

The lender earlier approved $987 million for Bangladesh to help it overcome macroeconomic pressures and build a buffer reserve.

Bangladesh received one of the seven instalments last year.

According to officials, the IMF mission found major differences in the draft of the VAT law amendment proposal given to them and the one placed in parliament. They expressed serious concern about it.

The proposal was first placed in a cabinet meeting in March for further review.

Later a committee was formed with the Prime Minister's Economic Affairs Adviser Mashiur Rahman as its head to further scrutinise the proposal.

On the basis of the recommendations of this committee, the proposal was again placed in the cabinet in July and it was approved.

Later the draft amendment to the VAT law was placed in parliament, which sent the draft to the parliamentary standing committee on the finance ministry.

The finance ministry official said the original draft to the amendment kept VAT at 15 percent in all stages of value addition but the rate was 5 percent in some cases in the final proposal.

The IMF also objected to another provision, which said the government may give VAT exemption to different sectors for public interest.

In case of the Banking Company Act, the lender wanted the government to cut the authority of the Banking Division and give more power to Bangladesh Bank.

According to the existing banking company law, the BB cannot exert full control over the state-owned banks.

The central bank can only dismiss the higher management and board members of the private commercial banks, but in case of state banks, the BB has no such power.

In such cases, the central bank can only advise the government. But when any irregularity takes place in the public sector banks, the BB has to shoulder the blame.

The IMF recommended amendment to this law to increase the central bank's power.

The IMF told the government that they will not release the loan on time if the VAT law and the banking company act do not get passage in parliament by November incorporating the recommendations, according to the official.

The government will request the lender to waive a condition about the exposure limit of commercial banks in the stockmarket.

Earlier the IMF asked the government to keep such an exposure limit of a bank at 25 percent of its total capital.

But the government wants the exposure limit to be at 40 percent of a bank's total capital. The existing exposure limit of a bank is 10 percent of its deposits.

The official said the IMF did not give any consent to the government's request, but if the overall reform programme remains satisfactory the lender may entertain the request.

Before getting each of the six equal instalments, the government will have to fulfil a set of conditions of the Washington-based lender.

The government by this December has to meet 11 more conditions.

The IMF imposed another condition that the government cannot make hard-term borrowing beyond $1 billion. The government will not need to cross the limit by December. But the government's various requirements next year may need around $3 billion.

The finance ministry official said the government plans to issue $750 million worth of sovereign bonds in the international market.

Besides, the government's guarantee for the private sector power producers will require about $2 billion next year.

The official said the government has requested the IMF to increase the limit of hard-term borrowing for next year. The IMF has hinted that the limit could be raised to $1.5 billion.

News: Daily Sun/Bangladesh/28-Sep-12

Opposition Bangladesh Nationalist Party (BNP) Thursday alleged that the World Bank’s statement on conditions binding the revival of Padma Bridge funding proves that the government was “lying” to the people.

“The statement created a shameful situation for the country. The World Bank said that it would rethink the Padma Bridge project if the conditions imposed by the lender are fulfilled. But our finance minister and senior government officials—even the Prime Minister—said that the World Bank has agreed to finance the Padma Bridge project,” Mirza Fakhrul Islam Alamgir, acting secretary-general of the party, said.

Fakhrul came up with the reaction while talking to journalists at party’s central office at Nayapaltan in the capital.

In a fresh statement Wednesday, the WB clarified its stance on the project and said, “Local media reports have quoted senior Bangladeshi government officials misrepresenting the World Bank’s position over the Padma Bridge project.”

Fakhrul said, “The government has committed a serious misconduct by distorting the Word Bank statement and it (government) should step down for committing such misconduct.”

The BNP spokesperson also said, “The nation is ashamed as the World Bank expressed its concern over corruption in Padma Bridge construction.”

He went on: “From World Bank’s statement it is clear that it cannot trust the government.”

Criticising the government decision to increase train fare, Fakhrul said, “Railway is always a means of easy communications for the common people. People’s life will be pushed into extreme sufferings through the fare hike of train ticket,” he said.

Fakhrul also alleged that the government has no headache in improving the life-style of the common people.

“They (government) are engaged in corruption and looting public money and also out to eliminate the opposition forces from the country,” he said.

Replying to a query whether the party will announce any programme to protest the fare hike, Fakhrul said, “We do not want to announce any programme which may create sufferings the the people.”

Regarding the Hallmark scam, the BNP leader said the government has failed to arrest a single person after the plundering of a huge amount of money from Sonali Bank.

“In such a situation, how the depositors will deposit their money with the banks,” he questioned.

The BNP leader alleged the government is expert in corruption but completely failure in running the country.

Fakhrul reaffirmed that their movement would be continued till their demand for restoration of the caretaker government system was fulfilled.

News: The Daily Star/Bangladesh/28-Sep-12