Series of arrests were made abroad
Investors lost money in crypto fraud.
Bangladeshi exporters also engaged in bitcoin trade
Don’t know the number of doomed fate.
Last week authorities across the world took severe actions against cryptocurrency fraud. In Bahama,Police arrested FTX owner Sam Bankman-Fried 1.Billions dollar worth of FTX crumbled and ruined thousands of investors. Another South Korean fled to Serbia after he had failed to pay the investors their due share2. Currency he introduced now worth $0.01. Authorities in Hong Kong alerted people investing in cryptocurrency as it poses huge risk.
This latest development reduced the trust on bitcoin to zero. Very few will interested to invest here in future.
Back in September Bangladesh Bank issued circular banning bitcoin in Bangladesh. Credit cards issued by local banks and Mobile Financial Services(MFS) are being used to do transaction in bitcoin,as noted by Bangladesh Bank. Citing Foreign Exchange Regulations Act 1947,the central bank underscored except fiat money transaction in other unregulated currency is illegal3.
The decision was taken in the wake of a police investigation that claimed that Tk 75000 crores were laundered abroad and Tk 25000 crores were smuggled out of the country in the span of one year,using MFS platforms,which play a crucial role in digital inclusion. What was worrying back then is that many exporters used crypto money to take orders and paid the bills for ingredients in crypto, as noted the central bank.
As one after another cryptocurrency went bankrupt, the issue here is that how many of our exporters have lost their money in crypto trade. Central bank needs to divulge the matter to the press. Another thing to note is that how many of these exporters took loans from local and foreign banks. The loans ,needless to say,turn into bad loans,causing further woes to ailing banks.
Back in September in my piece “Bangladesh Bans Bitcoin”4,I speculated that in Bangladesh, we have many rental power plants as well as captive power plants for industrial use. I fear many such plants may be used to bit mining operations. When you are producing RMG items or other industrial articles, price of electricity could play a role in fixing the price to maintain the competitive edge. But when you clandestinely operate such facility you are doing a great disservice to subsidized electricity. Electricity bill for such mining facility should not be same as that for industrial unit. Govt is also deprived of vital revenue. If govt allows such facility govt will get much needed revenue and higher price for electricity. This should be applicable for individuals who operate such facility at miniscule level.
As grey practices creep into our vernacular conducts, paying export proceeds in bitcoin is the latest addition. Earlier collapse of e-commerce industry has made destitute thousands of people. Transaction without cash receipt has become the new norm. The kind of digital Bangladesh is unfolding is adding woes to daily lives instead of making it easier, raising out of pocket expenditure instead of reducing it and full of illicit activities.
Key takeaways from this bitcoin debacle: - Identify the exporters who have lost their money in bitcoin trade.
- Identify how many of them took loan from local and foreign banks.
- Does the loss pose any serious threat to the NPL status of the banking system?
- Are the captive power plants being used for bitcoin mining operation?
- Consultation with MFS service providers to devise way to stop money laundering.
- Digital Bangladesh is making a u-turn,making lives difficult and costly.
Notes And References:
- "Sam Bankman-Fried:FTX Founder Arrested In Bahamas",Peter Hoskins,BBC,December 13,2022. For more read at
https://www.bbc.com/news/business-63953096?fbclid=IwAR2kVlkhiPaxiAnetAidBd_vzeZPe9Sch78qxPDlkZV3nNXzta6cUHulXgk
- "South Korea Says Crypto-Fugitive Do Kwon Is In Serbia",Peter Hoskins,BBC,December 12,2022. For more read at
https://www.bbc.com/news/business-63940181?fbclid=IwAR0U2mcB42WqZujuUCil6xdo26zOEadH9S9dHC3z84fAm0WGfDM6Smd-JPU
- "Bangladesh Bank Warns Against Accepting Export Proceeds In And Buying Cryptocurrency",bdnews24.com,September 15,2022.
For more read at
https://tinyurl.com/4b7tfz7h
- "Bangladesh Bans Bitcoin",Rezaul Hoque,September 16,2022.https://hoquestake.blogspot.com.For more read at
https://hoquestake.blogspot.com/2022/09/bangladesh-bans-bitcoin.html?m=1
(10 décembre --- 16 décembre)
Cliquez pour voir/cacher
Ma Semaine Gastronomique
| Date |
Petit déjeuner |
Déjeuner |
Dîner |
Snacks,Sucreries,Boissons et Fritures |
| 10 |
Pain tchapati(fait par moi),omelette,dattes |
Riz,Chou-fleur,Purée de feuilles de coriandre,Poisson batachy |
Pain tchapati(fait par moi),Poisson batachy |
Nouilles |
| 11 |
Pain tchapati,Omelette |
Riz,Aubergines, Ruhi,Chou-fleur-Haricot,Ruhi,Soupe aux lentilles,Poisson batachy |
Pain tchapati,Pois chiches |
--- |
| 12 |
Pain tchapati,Omelette |
Riz,Ruhi,Chou,Œuf poché,Ruhi,Purée de pomme de terre |
Riz,Ruhi,Chou,Pois chiches |
Pois chiches,Riz gonflé |
| 13 |
Pain tchapati,Chou-fleur |
Riz,Soupe aux lentilles, Radis-Haricot-Aubergines-Sec Bombili,Poisson batachy |
Pain tchapati,Pois chiches |
Pois chiches, Riz gonflé |
| 14 |
Pain tchapati,Chou,Œuf poché |
Riz,Ruhi,Haricot, Soupe aux lentilles,Œuf poché,Ruhi,Purée de pomme de terre |
Pain tchapati(fait par moi),Ruhi,Pois chiches |
--- |
| 15 |
Pain tchapati,Omelette |
Riz,Soupe aux lentilles, Purée de pomme de terre,Chou |
Pain tchapati(fait par moi),Chou-Soupe aux lentilles |
--- |
| 16 |
Pain tchapati(fait par moi),Omelette |
Riz,Tapshey poisson,Aubergines, Soupe aux lentilles,Chou-fleur |
Pain tchapati(fait par moi),Tapshey poisson,Aubergines |
--- |
Pay VAT not just to fill govt coffer
But to create a neighborhood safer.
This week is going to be Value Added Tax(VAT) week. VAT plays a crucial role in filling govt's coffer. 31 years ago when then finance minister Saifur Rahman introduced the VAT very few thought it would account mammoth share of government’s revenue. By any standard it was a bold and visionary step back then.Mr Rahman,who lost his life in a tragic road accident in 2009,was criticized right and left for the move.Nevertheless,he implemented the plan and now we are reaping its benefits.
In 1991-92,VAT revenue represented Tk 16.775 billion and income tax revenue was Tk 13.00 billion. In 2015-16,VAT revenue was Tk 539.16 billion and income tax revenue was Tk 517.96 billion. In 2021-22,VAT revenue was Tk 1.27 trillion and income tax revenue was Tk 1.05 trillion(Source:BER 2021).Earnings from VAT overwhelmingly dominate govt’s total revenue earnings. Though many people’s income slips through the income tax net,VAT touches people from all walks of life.Peasants, workers,housewives, unemploymed all pay VAT through their daily transactions. All goods and services are subject to 15% VAT regulations.
Govt uses the VAT money to pay subsidy and other expenses.Though mismanagement in public banks put them into precarious position,govt keeps funding these banks using taxpayer’s money to run operation. On the other hand,duties and taxes on export items are still low. Many exporters do not bring their money back home and pay a very low source tax,1%. Yet they receive regular subsidy.Government should raise the source tax to 2.5% and provide subsidy to export earnings brought back home. Even 0.25% increase in export tax would yield good revenue for the government without compromising the competitiveness of the exportable items.
Micro entrepreneurs and street vendors fall out of NBR's reach because their businesses do not fall into NBR's VAT category. Meanwhile, extortion from Dhaka streets every year reached Tk 14 billion ,according to an NGO study.NBR could introduce special bonds/tools for them which opens the alley for purchase of bonds worth Tk 100/500 every month/quarter at their own will.Part of the revenue will be used to form crisis fund for them in case of working capital need or bankruptcy.
In addition, NBR could introduce special gadgets with satellite data link so that road side kiosk and shops could generate VAT included cash receipts and the info could be sent directly to NBR server. We have a communication satellite and we need to make good use of it. Our software developers could develop software for such device and there is no need for foreign firms.
This kind of gadgets without data link already introduced by bus conductors in the name of e-ticketing and squeeze out unreasonable amount from commuters’ pockets. It is interesting to note that those with malevolent intention increasingly hinge on gadgets while govt is shy to introduce them. In local neighborhood shops and groceries, concept of money receipt has become a bygone era thing long ago. To document every transaction this gadget is a must.
Now in Bangladesh we see criminalized neighborhoods with the spread of grey areas in business and other sectors. Introduction of VAT gadgets will create VAT culture at the grassroot level business and decriminalize the neighborhoods with greater transparency and documentation. So we have to pay VAT not only to fill govt coffer but to create a safe neighborhood.This is the apt realization and resolution for a chaotic time we have been going through.
(03 décembre --- 09 décembre)
Cliquez pour voir/cacher
Ma Semaine Gastronomique
| Date |
Petit déjeuner |
Déjeuner |
Dîner |
Snacks,Sucreries,Boissons et Fritures |
| 03 |
Pain tchapati,Papaye-Lentilles |
Riz,Chou-fleur, Ruhi,Soupe aux lentilles |
Pain tchapati(fait par moi),Chou-Chou-fleur-Haricot |
--- |
| 04 |
Pain tchapati,Chou-fleur-Haricot |
Pain tchapati,Chou-fleur-Haricot,Ruhi |
Riz-œuf,Ruhi |
--- |
| 05 |
Pain tchapati,Omelette |
Riz,Chou,Purée de pomme de terre,Purée des feuilles de coriandre , Ruhi,Soupe aux lentilles |
Pain tchapati(fait par moi),Pois chiches, Purée de pomme de terre | --- |
| 06 |
Pain tchapati,Chou-fleur |
Riz,Ruhi,Graines de l'épinard malabar,Chou-fleur |
Paratha(fait par moi),Pama Croaker |
Pois chiches, Riz gonflé |
| 07 |
Pain tchapati,Omelette |
Riz,Chou,Feuilles de l'amarante rouge,Pama croaker,Soupe aux lentilles |
Pain tchapati(fait par moi),Chou | --- |
| 08 |
Pain tchapati,Pois chiches |
Riz,Ruhi,Pois chiches,Purée de pomme de terre |
Paratha(fait par moi),Purée de pomme de terre,Pois chiches |
--- |
| 09 |
Pain tchapati,Pois chiches,Omelette |
Riz,Feuilles de Radis,Tête de Ruhi à la Soupe aux haricots mungo,Purée de haricot |
Riz,Tête de Ruhi à la Soupe aux haricots mungo | --- |
Poor tax return of this fiscal year
Result of ambiguity and people’s fear.
National Board of Revenue has set December 31 as the new deadline for submitting tax return. November 30 was the previous deadline. However, lukewarm response from the taxpayers prompted NBR to set the new deadline.
Bangladesh is one of the few countries in the subcontinent where govt has to solicit/campaign for paying taxes. Only 900000 tax returns have been submitted till the last day of November. But the country has 8 million registered tax payers. But the authority believes the number of eligible taxpayers is much higher. That means more taxpayers ate still out of taxnet.
Dismal tax-GDP ratio tells a lot about country’s poor revenue collection.In 2015-16,country’s tax-GDP ratio was 9.49%. In 2020-21,it rose to 8.85% and in 2021-22,it became 8.70%. It has not even reached the double digit figures. Many countries in the region have higher tax-GDP ratio,leaving their govts in a comfortable position to finance their projects.
Breaking down of the tax receipts yields that direct tax on income and profit still lags behind indirect tax like VAT in terms of contribution to revenue generation. In 2015-16,VAT revenue was Tk 539.13 billion whereas income tax revenue was Tk 517.96 billion. In 2020-21,VAT revenue was Tk 1.27 trillion whereas income tax revenue was Tk 1.05 trillion(Source:Bangladesh Economic Review 2022). However, govt has lowered the corporate tax from 22% to 21% for current fiscal year.It should raise it to increase revenue from taxes on income and profit.
One of the good things govt introduced in recent years is the online return and eTIN to identify potential taxpayers. It dramatically increased the number of taxpayers. And all the troubles and hassles taxpayers endured all these years have also been reduced significantly.
Some YouTubers did tremendous help to govt by launching videos on how to submit tax return. I submitted my zero tax return watching such videos. I think NBR should take the initiative to create and disseminate such educational videos to dispel any ambiguity in submitting return. Similar videos can be created to submit VAT return. NBR's job is not only to identify taxpayers but also includes educating the taxpayers. If step-by-step process in filling the tax return is spelt ,more people will be encouraged to submit tax return. In addition ,NBR could also host a frequently asked questions (FAQ) section on its website to respond to some common queries.
More people have the fear that once they submit return they may be subject of future harassment. I think NBR should disseminate the message that everyone should pay tax to contribute to economy. Perception about submitting return needs to be changed and should be replaced with a moral obligation. A well-informed taxpayer, clear about his role, is never shy to pay tax in time. Government has to make sure a harassment-free,informative atmosphere.
(26 novembre --- 02 décembre)
Cliquez pour voir/cacher
Ma Semaine Gastronomique
| Date |
Petit déjeuner |
Déjeuner |
Dîner |
Snacks,Sucreries,Boissons et Fritures |
| 26 |
Pain tchapati,Omelette |
Riz,Anchois,Soupe aux lentilles |
Pain tchapati(fait par moi),Chou-Chou-fleur |
Nouilles |
| 27 |
Pain tchapati,Œuf poché,Chou-Chou-fleur |
Riz,Ruhi,Soupe aux lentilles, Chou-fleur |
Pain tchapati (fait par moi),Ruhi |
Pois chiches |
| 28 |
Pain tchapati,Omelette |
Riz,Anchois,Ruhi,Gourde calebasse,Citrouilles,Soupe aux lentilles |
Riz,Anchois-pomme de terre |
Pois chiches-tchanatchur-Riz gonflé,Café |
| 29 |
Pain tchapati(fait par moi),Œuf poché,pois chiches |
Riz,Soupe aux lentilles,Citrouilles, Gourde calebasse |
Pain tchapati(fait par moi),Chou-fleur |
--- |
| 30 |
Pain tchapati,Chou-fleur |
Riz,Épinards,Ruhi-Chou-fleur |
Pain tchapati(fait par moi),Purée de pomme de terre |
Riz gonflé-omelette |
| 01 |
Pain tchapati,Omelette, Purée de pomme de terre |
Riz,Ruhi,Luffa,Chou,Soupe aux lentilles |
--- |
Riz gonflé et pois chiches |
| 02 |
Pain tchapati,Citrouilles |
Riz,Œuf poché, Papaye-Citrouilles |
Pain tchapati,Chou,Pois chiches |
--- |
| | |