Bangladesh Bank has feared crisis in the supply of one and two taka worth coins in the next two years as tender for coins’ procurement is canceled after six companies complained about a condition which asks to ensure that there is no health hazards with the coins.

Bangladesh Bank, the country’s currency issuing authority, already sent a new proposal to finance division of the government for a fresh tender. “Finance Division is now scrutinising the Bangladesh Bank’s proposal to cancel tender process after the companies complained about the condition of removing coins’ health hazards,” said a senior official of the banking division on Thursday last week.

The central bank estimates that 2 billion pieces of coins will be required till December 2013 as most of the paper notes have torn out in the past five years since 2007.

The official sources said different companies from Japan, France, Canada, the UK, Netherlands and Salvia raised complaint against a condition which wants avoiding of possible health hazards of the coins.

The central bank wanted DNA tests of DIN 1013-3 and DIN 1061 which are believed to be necessary for metal coins to make sure that the users are secured from all health risks the coins may carry. The central bank didn’t take the health issues of the coins seriously before this time and so carried out no DNA tests.

Banking Division sources said they have already started scrutiny of the Bangladesh Bank’s re-tender proposal which now excludes the condition of DIN Test and Health Guard Coin.

In its proposal, the central bank said that it is not possible to float a fresh tender by end the current fiscal which ends in just next month. It said 2 billion metal coins cannot be procured in this short period of time.

Bangladesh Bank, therefore, has requested the finance division to go for re-tender in the next fiscal.

The central bank also wants a re-allocation of Tk 1.2 billion in the next fiscal’s budget. The cost of procurement of two types of coins is estimated at Tk 1.4 billion.

Chairman of Bangladesh Krishi Bank Khondkar Ibrahim Khaled on Sunday told daily sun that the amount of money involved with one and two taka notes are very small for the country’s money market. “So, I don’t see any major setback will be brought by the coin crisis for the country’s inflation rate situation,” he said. Ibrahim Khaled, however, said that the traders and the consumers might face problems due to crisis of one and two taka coins as the paper notes of these values tore in the last five years.

The government procured 300 million pieces of two taka metal coins in 2010, 180 million pieces in 2008 and 200 million in 2004.

It also procured 500 million pieces of metal coins in 2009 and 400 million in 2003. Earlier, the government procured 265.75 million pieces of two taka paper notes in 2010, 106.40 million in 2009 and 272.80 million in 2007. e portrait of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman will be printed on the proposed one and two taka worth coins.

The Daily Sun/Bangladesh/ 7th May 2012

The National Board of Revenue (NBR) is going to take strong action soon to collect taxes from the parties involved in the Bangladesh Premier League (BPL) T20 tournament.

The board will set its next course of action in a meeting within this week.

“We have allowed them enough time to pay the taxes. But unfortunately they failed to do so and are seeking more time. We will set our next course of action by this week,” said Kanon Kumar Roy, director general of Directorate of Inspection (Taxes) of NBR in Dhaka yesterday.

“We will take every measure to realise the taxes the government is entitled to and none of the parties involved will get a chance to escape,” said Roy, also head of a NBR team formed to monitor all the BPL financial transactions.

The tax administrator earlier projected to realise over Tk 200 million as taxes from parties involved with the first version of BPL between February 9 and 29 this year. The parties included event management firm Game On Sports, the six franchises, both foreign and local players and the BPL governing council.

However, the NBR so far received only Tk 10 million. The price of all teams played in the tournament was US$ 7 million (Tk 574m).

The concerned parties assured the NBR of paying the taxes by April 30. But they failed to do so and paid only a nominal amount so far. Many of them are also requesting the board to extend the timeline once again.

“Barishal Burners has paid only Tk 1.9 million as taxes in this time while many of them are requesting us to extend the time again,” Kanon Kumar Roy said.

NBR officials said as per the rule, NBR will deduct 25 percent tax against payments to foreign players and 10 percent from those to local cricketers. The revenue board estimated to earn Tk 96.5 million from the foreign players and Tk 19 million from the local players as taxes.

Till date the local players have got only 20-25 per cent of their total payment from the franchises though the foreign players got more.

Meanwhile, on March 30, Bangladesh Cricket Board (BCB) held a meeting with the owners of all participating teams of the tournament to discuss issues related to players’ payment.

In the meeting, the franchise owners gave their commitment to the board that all outstanding payment of overseas players will be cleared by May 9 and the dues of the local cricketers will be settled by 31 May.

The Daily Sun/Bangladesh/ 7th May 2012

Ananth Narayan

Ananth Narayan, the regional head of global markets of Standard Chartered Bank, will arrive in Dhaka today for a three-day official visit, the Bank said in a statement.

Narayan, also co-head of wholesale banking, South Asia, is expected to meet key regulators, clients, employees and other stakeholders during his visit.

His responsibility includes trading, sales and structuring across asset class like fixed income, credit, commodities and equity.

The Daily Star/Bangladesh/ 7th May 2012

Bangladesh Bank Governor Atiur Rahman leaves Dhaka for Kolkata today to receive the prestigious Indira Gandhi Gold Plaque 2011, said a statement yesterday.

Atiur has been awarded the Gold Plaque by the Asiatic Society in Kolkata in recognition of his significant contribution to international co-operation towards human progress.

He will receive the award this evening at the Vidyasagar Hall of the Asiatic Society, Kolkata.

He has also received the 'Sheltech Award (2010)' and 'Nawab Bahadur Syed Nawab Ali Chowdhury National Award (2012)' for his outstanding contribution to the development of the financial sector in Bangladesh.

The award was introduced in 1985. Past awardees include ex-Swedish premier Olof Palme (1985), Dr DS Kothari (1986), Nobel laureate Mother Teresa (1987), former secretary general of the United Nations Dr Javier Perez de Cuellar (1988), Dr Nelson Mandela (1989), Rev Desmond Tutu (1990), Yasser Arafat (1993), Prof Amartya Sen (1994), Aung San Suu Kyi (1995), Shri KR Narayan (1996), Dr Ali Akbar Khan (1997), Dr Gabriel Garcia Marquez (1998), Father of the Green Revolution MS Swaminathan (2002), and shehnai maestro Ustad Bismillah Khan (2003).

The Daily Star/Bangladesh/ 7th May 2012

The National Board of Revenue (NBR) for the first time is going to honour 20 highest taxpayers with 'tax cards' to recognise their compliance and consistency in paying taxes.

The tax authority has already finalised a list of top taxpayers, including 10 companies, to motivate more people to pay taxes so the government can mobilise more funds domestically for financing its annual budget.

A list of the selected taxpayers has already been sent to a ministerial committee on national award for a final approval, said an official of the NBR.

However, many leading taxpayers, including companies and individuals, could not make foray into the list due to cases pending in courts.

"We want to encourage people to pay more taxes by awarding the tax cards. We will honour those taxpayers who are not loan defaulters or tax defaulters and have no criminal or tax cases pending at courts," said MA Quader Sarker, member in charge of tax administration and monitoring of the NBR.

Prime Minister Sheikh Hasina is expected to hand over the tax cards on May 26 through a programme.

These top taxpayers will enjoy some privileges while making a reservation for seats in state-run airlines, trains and water transports.

They will also be able to use the lounge for commercially important persons (CIP) at the airports.

They along with their family members will easily get cabins at government hospitals. The card holders will also be invited to various government functions.

The NBR initiative comes in line with its efforts to increase revenue through various ways including encouraging existing and prospective taxpayers to pay taxes. In the last four years, the revenue administration has been observing income tax day.

The NBR also started organising tax fairs to encourage people to submit tax returns and get tax identification number (TIN) without hassle. Also, the tax administration began honouring the long-time and highest taxpayers from city corporations and districts.

To give a mental boost to the taxpayers further, the authority framed a policy in 2010 to honour the highest taxpayers by giving them the tax cards with one-year tenure.

In line with the policy, taxpayers, having criminal cases under trial in court, default loans and income tax and value added tax related cases pending in court will not be eligible for the honour.

Chevron Bangladesh Block 12 Ltd, Sylhet Gas Ltd, Citibank NA, American Life Insurance Company, Trust Bank, Security Printing Corporation (Bangladesh), Bangladesh Export Processing Zones Authority, Jamuna Bank, AK Khan & Co, and Bapex Ltd have become the top taxpayers.

In the individual category, a Rangpur-based businessman, Md Motazzaroul Islam, topped all in the tax payment records of the revenue board.

Others include Iqbal Haider Chowdhury, Haji Kauch Mia, MM Amjad Hossain, Md Yusuf, M Haider Hossain, Md Motahar Hossain, Salahuddin Kasem Khan, M Ziauddin Khan and Liala Hossain.

During the last several years, the tax authority has been recording increasing amount of revenue. Total revenue collection rose 27 percent to Tk 79,092 crore during the fiscal 2010-11 from Tk 62,042 crore the previous year.

During the July-March period of the current fiscal year, NBR earnings increased by 18 percent to Tk 62,737 crore from Tk 53,107 crore in the same period a year ago.

The Daily Star/Bangladesh/ 7th May 2012