Small bank account holders who maintain their accounts’ balance up to Tk 100,000 will not be charged additional 5 per cent withholding tax on their interest earnings even if they do not have tax identification number (TIN).

A proposal to increase tax at source on bank interests to 15 per cent for those without TIN from the 10 per cent was made in the budget for the current fiscal 2012-13 (FY13). But the proposal was later amended in the final budget with lifting the additional tax for the small account holders.

“We have conveyed the amendment to the banks immediately after the parliament passed the budget so banks do not charge additional tax on small account holders,” a National Board of Revenue (NBR) official told the news agency.

Many banks, however, are sending SMS to their clients irrespective of their account balance advising them submit their TIN certificates to avoid the additional 5 per cent tax at source.

The NBR official said the account holders, who do not have a deposit of over Tk 100,000, need not to be worried about the SMS as they would not be charged theadditional tax.  He said the account holders, however, would be charged 10 per cent tax at sources as of previous years.

The Daily Independent/Bangladesh/ 12th July 2012

RANGPU: The divisional business assessment meeting of the officials of the divisional, regional, corporate and district offices of Sonali Bank Limited (SBL) was held here today.

General Manager of Rangpur General Managers’ Office ANM Mashrurul Huda siraji presided over the meeting at his conference room while General Manager of Rajshahi General Managers’ Office ATM Afzal Hosain was present as the special guest.

All regional chiefs, chiefs of all six principal offices, regional offices, corporate branches and branches and senior officials of the SBL from all eight districts in Rangpur division participated.

The meeting assessed business achievements of all regional, corporate, principal offices and branches of the Bank during the just ended fiscal year and put maximum emphasis on achieving all fixed business indexes during the current fiscal.

He suggested for disbursing maximum agri-loans, realizing classified loans.

The Daily Sun/Bangladesh/ 12th July 2012

Bangladesh bank Governor Dr Atiur Rahman along with senior officials of Western Union and its principal agents, seen at a function to celebrate Western Union’s 12000 agent locations in Bangladesh at a hotel in Dhaka Tuesday.

Western Union, together with its agents, has become the largest international money remittance network in Bangladesh, by exceeding a record-setting 12,000 agent locations across the country recently.

Four leading banks of the country – Agrani, Islami, NCC and Uttara have recently become Western Union agents, bringing a total of 2,000 additional locations to the network, said a press release.

Consumers in Bangladesh can now receive Western Union Money TransferSM transactions from overseas across all 64 districts and 509 thanas in Bangladesh, from Teknaf to Tetulia. Some Western Union agent locations open beyond traditional nine-to-five business hours and on weekends.

“Through our 12,000 locations operated by 20 principal bank agents in Bangladesh, Western Union is there to serve Bangladeshis receiving money from family and beloved ones working and living overseas, particularly 70 percent of the population who live in rural areas,” said Patricia Riingen, senior vice president, East and South Asia, Western Union.

“Western Union has been bringing the world to Bangladesh for 18 years, connecting it with a global network of 500,000 agent locations in more than 200 countries and territories, providing coverage of countries popular with the six million Bangladeshis abroad.”

“Over the years, we have enabled and participated in the growth of overseas immigration and the change in Bangladesh’s economy by offering convenience, reliability and speedy transfers of monies – majority of which are funds for regular financial support and living expenses.

The Daily Sun/Bangladesh/ 12th July 2012

Industries Minister Dilip Barua assured the SME sector that the government has laid due emphasis on removing hassles of getting loans.

He was addressing the inaugural ceremony of ‘Integrated support of poverty and inequality reductions through enterprise development’ (INSPIRED) project at a city hotel Tuesday.

The Industries Ministry has undertaken the project to attain institutional capacity for formulating a SME development strategy in cooperation with European Union (EU).

EU ambassador to Bangladesh William Hanna was present as special guest.

Industries Secretary KH Masud Siddiqui presided over the function.

Dilip Barua mentioned that small and medium enterprises constitute 90 percent of private sector and 70 to 80 percent of non-agricultural workforce.

“It (SME sector) made up to 25 percent of national gross domestic product last year,” he said.

The six-year project will be implemented at the cost of 19 million euro, provided by EU.

Bangladesh bank and the commercial banks’ ability to provide support will be increased by the programme.

The project is also intended to widen the avenues of communication between the bankers and entrepreneurs.

It will make attempts to develop industrial clusters including of agricultural products processing, electronics, plastic goods, light engineering, furniture, textiles and leather.

“This project will enable Bangladesh in the long run sustainable economic growth,” said Dilip Barua.

Focusing on SMEs contribution to national economy, he also expected that the ISPIRED project will expedite the development of SMEs.

ABM Khorshed Alam, additional industries secretary and project director also spoke at the function. A number of small and medium entrepreneurs and senior government officials were also present.

The Daily Sun/Bangladesh/ 12th July 2012

Circulation of fake currency dropped by 50 percent amid intensified drives by the law-enforcement agencies after Bangladesh bank (BB) took a tough stance against forged notes since October last year, according to a BB survey.

The survey, carried out by BB officials, was based on the statements by members of identified syndicates involved in printing and circulating forged currency notes and the assessment of the members of law enforcement agencies.

“Per head distribution of the counterfeit currency value is maximum Tk. 0.10 (ten paisa) at present which was almost double nine months ago,” a concerned BB official told daily sun.

Per head distribution means estimated annual financial loss to millions of end-users across the country, he said.

According to the survey, the value of circulated fake notes in the country will be around Tk 15 million at present, as the country harbors 150 million populations, he said.

According to the survey, fake notes of around Tk 15 million still exist in the market currently against the country’s total population of 150 million.

The circulation of fake bank notes rose abnormally after new notes of Bangladeshi Taka, marked with the image of Father of the Nation, Bangabandhu Sheikh Mujibur Rahman, launched by the central bank in August last year.

In August last year, the central bank had introduced 23 million new currency notes. According to BB data, there are 500 million pieces of Tk 2 notes, 200 million pieces of Tk. 5, 400 million pieces of Tk. 10, 200 million pieces of Tk 20, 100 million pieces of Tk 50, 400 million pieces of Tk 100, 300 million pieces of Tk 500 and 200 million pieces of Tk 1,000 notes.

Currently, currency notes worth Tk 650 billion is in the market, according to BB statistics.

As the fake currency notes continues to pose a big threat to the currency notes, the central bank had sought close cooperation of the law enforcement agencies to round up members of the syndicates involved with note forgery after some cases of major fake note transactions were detected in September same year.

In September last year alone, police rounded up some 20 members of such syndicates and seized currency-making equipment and thousands of new counterfeit notes during raids in the city, according to police records. Till June this year, the number of arrested members of organised gangs involved in this illegal practice rose to above 50, said a concerned BB official.

“This clearly indicates that syndicates involved with it are using improved technology to produce counterfeit notes. We found that the forged notes were generated by computer by copying the genuine ones,” said the official expressing concern over rising banknote forgery.

The BB official said rising circulation of counterfeit notes was causing immense financial loss to millions of end-users across the country every day.

Using improved technology, active domestic and international syndicates were producing counterfeit notes, exactly matching the features of the genuine ones, he said.

However, the scenario has changed because of massive awareness campaign by the central bank through media and various publications, seminars and symposiums across the country, he said.

The BB official said mobility of every counterfeit note stopped at maximum third stage of transaction as users identify its fragile colors easily. He said the first stage is the wholesaler, second is the retailer and third is the end-user.

Commenting on this issue, former central bank governors Dr Salehuddin Ahmed has laid emphasis on ensuring strong security feature and distinguish the currency notes in size and color to prevent circulation of fake notes.

“Similarity in size and outlook of currency notes usually creates confusion among users and they can not distinguish the difference between genuine and fake notes during rush hours or during the load-shedding periods,” he said.

The renowned banker also underscored the need for proper implementation of laws so that none of the arrested members of forge note printing syndicates could get bail from the court.

“One of the major reason for rising circulation of fake notes is the superiors (syndicate bigwigs) always remains behind the scene and they help their associates evade punishment,” he said.

Dr Ahmed categorically disagreed to the central bank’s survey regarding reduction in the average financial loss of citizens due to mobility of fake notes.

“I am not sure whether the survey report is right! For example, a poor person who earn Tk 500 a week suddenly fall victim to fake note. His loss is a cost of a week’s labor. So, the magnitude of financial loss from fake notes cannot be average at all,” he said.

He said the duty of the central bank in this regard is to create trust among currency users by protecting its security properly.

He said fake note circulators often take advantage of the people’s ignorance about the differences between genuine and forged notes.

While narrating the main feature of a genuine note, a BB official said its colour cannot be wiped out. “In case of a fake one, the touch of even a wet finger can do so,” said the official.

The latest notes, he added, were made of high-quality cotton (90 percent) and polymer (10 percent) with a synthetic security thread in the middle. It has three pixel watermarks, including one of Bangabandhu Sheikh Mujibur Rahman, and a tiger.

The genuine notes were made of optically variable ink (OVI), which usually altered in various lights, he added.

A genuine note was made of a high-quality paper that would protect the note from getting damp, while the paper of a counterfeit note moistens easily, he said.

The Daily Sun/Bangladesh/ 12th July 2012