e_Paper, Monday, August 7, 2017

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MONDAY, AUGUST 7, 2017
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News
Finance Division worried
about budget deficit
• Asif Showkat Kallol
ECONOMY
Finance Division officials have expressed
concerns over meeting the
deficit in the current budget at the
beginning of the fiscal year, citing
the unimplemented VAT law.
Even Finance Minister AMA Muhith
is not immune from worry, as
he has also expressed doubts about
meeting the ambitious budget targets
without the implementation
of the 2012 VAT Act. The minister
has sought a work plan from the
National Board of Revenue (NBR)
to find ways to meet the deficit.
After a two-hour meeting on
Thursday, Muhith directed NBR
Chairman Najibur Rahman on the
creation of a work plan, said Finance
Division officials. The Finance
Division will start a revision
of the budget after the NBR has
Dhaka to open new
diplomatic missions
• Asif Showkat Kallol and
submitted the plan.
fall Tk67,000 crore short of the Shohel Mamun
On July 30, members of the parliamentary
target due to postponement of the
standing committee on new law which introduces a 15% FOREIGN AFFAIRS
the Finance Division discussed the flat VAT rate on all sectors.
budget, suggesting that the deficit The decision to postpone the Bangladesh is going to open seven
of Tk17,000 crore would be met by VAT law has raised eyebrows, questioning
new fully fledged diplomatic mis-
expansion of VAT areas along with
the government’s ability to sions in Toronto, Sydney, Chennai,
collection of large dues by the NBR. meet its budget deficit, and the Finance
Freetown, Bucharest, Kabul and
An estimated Tk5,000 crore will
Division says the deficit may Khartoum in a bid to expand its ex-
be earned from taxes and duties on force the government to borrow port market.
cigarettes and biris, Tk500 crore more from saving instruments and The missions will also aim to
from bank accounts and Biman banking sectors.
strengthen diplomatic relations
tickets as excise duties, and Tk100 The NBR has increased revenue with the countries, said officials.
crore from fast food and 10% supplementary
targets by 34% to Tk91,275 crore in A proposal of the Foreign Minis-
duties. Tk6,000 crore the current fiscal year through VAT try on the matter will be placed at
will be earned from other sectors as and supplementary duty collections.
the weekly cabinet meeting today
additional earning, according to Internal
The target for revenue from with Prime Minister Sheikh Hasina
Resources Division sources. those sources for the fiscal year in the chair.
The NBR is also set to earn 2016-17 was Tk74,114 crore.
According to the proposal, the
Tk22,000 crore from Petro Bangla In the last fiscal year, the NBR Foreign Ministry has decided to set
through dues, and an additional managed to collect Tk52,842 crore up new embassies or diplomatic
Tk2,000 crore from Petro Bangla up till April, which was 18.4% higher
missions in Canadian city of To-
during the current year.
than the same period in the fiscal ronto, Australian city of Sydney,
According to Finance Division year 2015-16, which was Tk44,631 Romania’s capital Bucharest, Sierra
calculations, VAT collection will crore. •
Leone’s capital Freetown, Indi-
Downing Street dismisses £36bn Brexit divorce bill
• Tribune Desk
speech towards the end of the summer with additional money to make up the “rights and obligations”.
fleshing out details of any offer to
€40bn figure that UK negotiators hope News of the figure will be controversial
WORLD
Brussels, while a series of papers are will break the deadlock in talks.
among some Conservative MPs who
expected in coming weeks on how the
The Sunday Telegraph quoted a
believe the UK should not pay as much,
Downing Street sources have played UK proposes to manage a transition. Whitehall source saying: “We know that or anything at all. Just three weeks ago
down reports that the UK is prepared to A Number 10 official told The Independent
(the EU’s) position is €60bn, but the Foreign Secretary Boris Johnson said EU
pay a divorce bill of up to £36bn to try
that reports the Government actual bottom line is €50bn.
leaders could “go whistle” if they expected
and force progress in stalled Brexit talks. was preparing to offer the EU payments “Ours is closer to €30bn, but the Britain to pay an “exorbitant” divorce bill.
The figure amounting to some
of €10bn every year for up to three
landing zone is €40bn even if the public The European Union’s chief Brexit negotiator
€40bn would be offered in a bid to
years after Brexit were “highly speculative
and politicians are not all there yet.”
Michel Barnier warned it is “very
push discussions on from withdrawal
and wrong”.
Brexit Secretary David Davis and unlikely” talks can progress in October as
and towards a future trade deal, according
It was claimed on Sunday that the May have both said that the Govern-
planned if there is not better progress.
to reports.
commitment to the ongoing budget ment would work with Brussels to
May is preparing to give a speech
Theresa May is expected to give a payments would then be supplemented determine a fair settlement of the UK’s close to the start of September in which
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an city of Chennai, Afghan capital
Kabul and Sudanese capital Khartoum.
A senior Foreign Ministry official
said the opening of new missions is
part of the Awami League government’s
plan to prioritise economic
diplomacy in its foreign policy.
Upholding the government’s decisions,
the official said it became
necessary for Bangladesh to open
more embassies to serve the growing
number of expatriate Bangladeshis,
raise exports and boost
diplomatic ties with Europe, Africa
and North America.
As per the Foreign Ministry estimates,
about 7 million Bangladeshis
now live abroad and send home
around $12bn a year as remittance.
Currently, 72 Bangladeshi missions,
high commissions, consulates,
deputy high commissions,
assistant high commissions and
visa offices are operating in 56
countries. •
she is expected to spell out details of
the EU withdrawal agreement including
a divorce bill.
Positioning papers on how the UK
might manage customs arrangements
during a transition and the issue of the
border between Ireland and Northern Ireland
are expected as early as next week.
There will also then be a string of
other papers detailing various aspects
of May’s proposals, including the
approach to the single market during
transition, as the Government attempts
to show it has a solid plan for Brexit.•