Greater risk of declining revenue

Greater risk of declining revenue
Greater risk of declining revenue

More vigorous preparations are being made to face the challenges after LDC transition. In this case, the government is seeing a big risk of revenue reduction in the future. However, careful attention is being kept on how to deal with the difficult period after LDC transition. It has been urged to reduce cash incentives and subsidies on exports. Bangladesh will lose its existing tariff and quota-free benefits after transitioning from LDC to developing country..

In this situation, free trade and preferential trade agreements should be concluded with various countries to increase exports.. There is a risk of reduced revenue under such trade agreements. At the same time, cash incentives and subsidies on exports that are inconsistent with World Trade Organization (WTO) regulations should be phased out.. But in an alternative waytThe export sector will be supported.

This information was given in a national workshop on dealing with challenges after LDC transition in Dhaka on Saturday. The workshop was organized to present the draft recommendations on actions to be taken to address potential challenges in LDC transition to stakeholders and finalize them based on their feedback..

Prime Minister’s Chief Secretary participated as the chief guest under the chairmanship of Finance Department Senior Secretary Fatima Yasmin. Ahmad Kaykaus. On behalf of the participants, FBCCI President Md. Jasim Uddin, BGMEA President Farooq Hasan, On behalf of the researchers, Director General of BIDS Dr. Binayak Sen and the chairman of PRI. Zaidi Satta presented the speech.

Apart from this, Bangladesh Bank Governor Abdur Rauf Talukder is the panel discussant, Senior Secretary of Internal Resources Department and Chairman of National Board of Revenue Abu Hena Md Rahmatul Munim and Senior Secretary of Ministry of Commerce Tapan Kanti Ghosh spoke..

Note that, The challenges that Bangladesh will have to face after transitioning from a least developed country in 2026, That preparation, take the plan, A national committee has been formed under the leadership of the Principal Secretary to the Prime Minister for implementation and monitoring. It is one of the 7 thematic sub-committees formed to assist the committee in its work Internal Revenue Collection and Tariff Rationalization Sub-committee on.

Three convenors of three study groups formed under this sub-committee presented the main recommendations at the national workshop. A press release in this regard has also been issued by the Finance Department of the Ministry of Finance.

Member of NBR (Tax Policy) made a presentation on reforming tax regulations and procedures in the workshop. Sams Uddin Ahmed, NBR Member (Tariff Policy) Md. Masood Sadiq presented on Tariff Rationalization and Director General (Additional Secretary) Arfin Ara Begum, Monitoring Cell, Finance Department presented on Export Incentives.. At the National Workshop Reform of tax regulations and procedures The Subject Study Group in its presentation emphasized on identifying unnecessary areas of tax exemption by conducting research on tax expenditure.. Special emphasis is also placed on increasing the extent of automation and digitization in revenue administration.

Laws related to collection of revenue (eg, New Customs Act and New Income Tax Act) are recommended to be in line with international best practices. Apart from this, the WTO Trade Facilitation Agreement recommends modernization of procedures to simplify customs procedures and speed up clearance of goods.. Apart from this Tariff rationalization Among the recommendations presented by the Study Group on the subject are that the customs duties imposed on goods exceeding the WTO Bonded Tariff Rate Limit should be brought within that limit., Since the minimum import value is not in line with the WTO Customs Valuation Agreement, Therefore, phase-out of the said minimum import price and reduction of para-tariffs and supplementary duties applicable at the import level should be phased out..

Further, the Study Group on Subsidies in their presentation noted that, While there is no difficulty in providing cash assistance as a LDC at present, it may not be provided in case of exports of industrial goods after transition.. Apart from this, currently export incentives, The condition of local value addition in cash assisted sectors should be removed.

A study group compared the export picture of Bangladesh with a country that does not provide export incentives and found that, If there is no cash support for exports, the level of negative impact will be less in the long run. However, As the withdrawal of cash incentives may reduce the competitiveness of the export sector, For that reason, the study group is reviewing what alternative measures or activities can be adopted.

Chief Secretary to the Prime Minister. Members of various Chamber bodies and representatives of various sectors participated in the open discussion and question-and-answer session moderated by Ahmed Kaykaus.. Exporters to take necessary preparations and effective steps to smooth Bangladesh’s transition from LDC, It is important to take the expert opinion of the relevant stakeholders and researchers including importers.

To face the challenges of Bangladesh’s LDC transition Internal Revenue Collection and Tariff Rationalization Valuable feedback and suggestions received from the participants in the National Workshop are expected to play an important role in finalizing the recommendations on the course of action of the Sub-Committee..

The article is in Bengali

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