ANNUAL REPORT
2012-2013
FOREIGN INVESTORS’ CHAMBER OF COMMERCE & INDUSTRY
“Shama Homes”, Apt. # C-3, House # 59, Road # 01, Block # I, Banani,
Dhaka-1213
E-mail: ficci@bdcom.net Website: www.ficci.org.bd
Phone: 9893049, 9892913 Fax: 9893058
CONTENTS
 FICCI
 NOTICE OF 50TH ANNUAL GENERAL MEETING
 PRESIDENT’S REVIEW
 FICCI PRESIDENTS SINCE INCEPTION OF THE CHAMBER
 MINUTES OF THE 49TH ANNUAL GENERAL MEETING
 ANNUAL REPORT FOR THE YEAR ENDED 30TH JUNE 2012
 ANNEXURES - A, B & C
 ANNUAL ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2013
2
FICCI
The Foreign Investors’ Chamber of Commerce & Industry (FICCI) was established on the 1st
of July 1963 in the port city of Chittagong under the name and style of the “Agrabad Chamber
of Commerce & Industry” (‘Agrabad’ being the name of the commercial hub of the city) with
the initiative of the foreign companies located in and around Chittagong. It may be
mentioned here that, at that point of time, most of the foreign companies, mainly British,
had their establishments located in that region of the country.
Subsequently, after the emergence of Bangladesh as a sovereign and independent country in
1971, it was felt that the Chamber’s office should be shifted to Dhaka, the capital of
Bangladesh for practical reasons and that the name of the Chamber should be suitably
changed in order to include foreign companies located outside Chittagong region.
Accordingly, in June 1987 the Chamber assumed its present name i.e. the Foreign Investors’
Chamber of Commerce & Industry and had its office shifted to Dhaka from Chittagong.
FICCI is affiliated with the Federation of Bangladesh Chambers of Commerce & Industry
(FBCCI) as an ‘A’ class Chamber and is a founder member of the Bangladesh chapter of the
Paris based International Chamber of Commerce-Bangladesh (ICC-B). The Chamber
maintains regular communications with the International Trade Centre (ITC), Geneva and
the World Trade Organisation (WTO), Paris.
The Chamber is represented in various Consultative and Advisory Committees of different
government ministries and agencies and has been able to establish itself as an organisation
to be reckoned with.
Companies having a minimum of 50% foreign share holding in their equity and/or 100%
management control in case the percentage of foreign share holding is less than 50 are
eligible for ‘Ordinary’ membership of the Chamber and those having less than 50% foreign
share holding in their equity are eligible for ‘Associate’ membership.
The objectives of the Chamber are:






to promote and protect the business interests of its members;
to render such assistance and advice to the government of Bangladesh and its concerned
agencies/authorities which may help promote growth of trade, commerce and industry
of the country in general and foreign investors in particular keeping in mind the
interests of FICCI members;
to support or oppose, as the case may be, legislative or other measures of the
government affecting trade, commerce and industry of the country in general and the
FICCI members in particular;
to help establish just and equitable principles in the domain of trade, commerce and
industry of Bangladesh;
to liase with other trade organizations home and abroad and with concerned
government agencies/authorities for exchange of information, views etc. to serve the
interest of FICCI members and
to do such other things from time to time as the situation may demand for promotion
and protection of the overall interests of the country’s trade, commerce and industry
keeping in mind the interests of FICCI members.
3
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 50th Annual General Meeting of the Foreign Investors’
Chamber of Commerce & Industry will be held on 28th November 2013 at 7:30 pm. at
The Westin Dhaka (Ball Room-3).
AGENDA
1. To receive and consider the Annual Report of the FICCI Committee for the year
ended 30th June 2013.
2. To receive and consider the Annual Accounts of the Chamber for the year ended 30th
June 2013 and the report of the auditors’ thereof.
3. To appoint Chamber’s auditors for the financial year 2013-14 and to fix their
remuneration.
By order of the Committee
M. A. MATIN
Executive Director
November 01, 2013
4
PRESIDENT’S REVIEW
SPEECH BY SYED ERSHAD AHMED, PRESIDENT, FICCI,
AT THE 50TH AGM ON 28th NOVEMBER, 2013 at 7:30 PM
Distinguished Members,
A warm welcome to all of you at this Annual General Meeting 2013.
As President of Foreign Investors’ Chamber of Commerce of Industry I would like to
share with you briefly some key events that took place during the period under report.
The Committee as usual maintained the tradition of holding regular monthly luncheon
meetings with the participation/presence of distinguished guests of honor from the
Government as well as Heads of Diplomatic Missions and International Organizations
in Bangladesh.
In addition to the regular/routine activities a few special initiatives were undertaken
during the tenure of the present Committee which was supported by the distinguished
FICCI Members. I would like to take the privilege of sharing few of our achievements:

FICCI turned 50 in June 30, 2013. To commemorate the occasion a press
conference was arranged by the Chamber supported by SCB at the Pan Pacific
Sonargaon on the day. Various events i.e. Newspaper Supplement, Cocktail
Reception in Chittagong, Gala Dinner in Dhaka & a Seminar on FDI are
planned, to celebrate the golden jubilee of the Chamber.

This year membership growth was comparatively better than the previous
years. A total of 16 new members were included during the period under report
& thereby membership strength crossed 190.

Intervened to obtain clarification from Bangladesh Bank resulting in lifting of
embargo on renewal of license of existing companies such as foreign GSA,
Freight Forwarders, Airlines, Shipping Lines & Tour Operators etc.

FICCI joined hands with FinanceAsia as a supporting organization for the
Inaugural Bangladesh Investment Summit in Singapore & London which took
place in December 2012 & June 2013 respectively.
 Monthly bulletins of FICCI are coming out on a regular basis. Recently a
magazine committee has been formed to improve the quality & content of
monthly bulletin. I would like to thank FICCI member companies for their
support.
 The Government has accepted a few of the recommendations made by FICCI
along with other major chambers in 2013-14 National Budget.
5
 I am pleased to inform you that our members are taking benefit of FICCI visa
referral letter to various diplomatic missions in Dhaka & Bangladeshi missions
overseas.
 The Chamber has been issuing certificates of origin & visa referral letters to
FICCI member companies and during July 2012 to June 2013 period, the
Chamber issued 133 certificates of origin & 63 visa referral letters.

Two new officials have been appointed to strengthen the Chamber & the
website of FICCI has got a new & improved look.
These are highlights of some activities in addition to our usual work mentioned in
the Annual Report.
I would like to take this opportunity to thank my colleagues in the Executive
Committee for their continuous support to the secretariat and me during the tenure
of our committee.
Further, I would also like to take this opportunity to express my sincere thanks to
member companies for their support and cooperation during the tenure of my
committee.
In conclusion, I am sure that FICCI will play a more productive and proactive role
in future with renewed strategy and direction.
For & on behalf of the Executive Committee.
Syed Ershad Ahmed
President
6
FICCI PRESIDENTS SINCE INCEPTION
1963-64: Mr. H. P. Carse, CBE
1964-65: Mr. H. P. Carse, CBE
1965-66: Mr. A. P. Baldwin
1966-67: Mr. H. P. Carse, CBE
1967-68: Mr. F. Wicher
1968-69: Mr. C. W. Tassie
1969-70: Mr. G. W. Inglis
1970-71: Mr. N. L. Smith
1971-72: Mr. P. W. V. Rowe
1972-73: Mr. M. A. Anwar
1973-74: Mr. W. S. Sutherland
1974-75: Mr. W. S. Sutherland
1975-76: Mr. M. A. Anwar
1976-77: Mr. O. R. A. R. Nizam
1977-78: Mr. M. A. Anwar
1978-79: Mr. M. A. Anwar
1979-80: Mr. M. A. Anwar
1980-81: Mr. M. A. Anwar
1981-82: Mr. L. D. B. Bryceson
1982-83: Mr. L. D. B. Bryceson
1983-84: Mr. M. A. Anwar
1984-85: Mr. M. A. Anwar
1985-87: Mr. M. A. Anwar
1987-89: Mr. A. Hasanat Khan
1989-91: Mr. A. Hasanat Khan
Dec. ’91-Nov. ’92: Mr. Syed Humayan Kabir
Mar. ’93-Nov. ’93: Mr. Mahbub Jamil
1993-95: Mr. Mahbub Jamil
1995-97: Mr. Mahbub Jamil
1997-99: Mr. A. K. M. Shamsuddin
1999-01: Mr. Waliur Rahman Bhuiyan
2001-03: Mr. Waliur Rahman Bhuiyan
2003-05: Mr. Mahbub Jamil
2005-07: Mr. Masih Ul Karim
2007-09: Mr. Waliur Rahman Bhuiyan, OBE
2009-11: Mr. A. M. Hamim Rahmatullah
2011-13: Mr. Syed Ershad Ahmed
7
James Finlay & Co. Ltd.
James Finlay & Co. Ltd.
Duncan Brothers (Pak) Ltd.
James Finlay & Co. Ltd.
Volkart Brothers & Co. Ltd.
James Finlay & Co. Ltd.
Glaxo Laboratories (Pak) Ltd.
James Finlay & Co. Ltd.
Glaxo Laboratories (BD) Ltd.
Robinson Foods (BD) Ltd.
James Finlay & Co. Ltd.
James Finlay & Co. Ltd.
Robinson Foods (BD) Ltd.
National Brokers Ltd.
Robinson Foods (BD) Ltd.
Robinson Foods (BD) Ltd.
Robinson Foods (BD) Ltd.
Robinson Foods (BD) Ltd.
Glaxo Bangladesh Ltd.
Glaxo Bangladesh Ltd.
Robinson Foods (BD) Ltd.
Robinson Foods (BD) Ltd.
Robinson Foods (BD) Ltd.
Bangladesh Oxygen Ltd.
Bangladesh Oxygen Ltd.
Pfizer Laboratories (BD) Ltd.
Singer Bangladesh Ltd.
Singer Bangladesh Ltd.
Singer Bangladesh Ltd.
Rhone-Poulenc Rorer (BD) Ltd.
BOC Bangladesh Ltd.
BOC Bangladesh Ltd.
Singer Bangladesh Ltd.
Berger Paints Bangladesh Ltd.
BOC Bangladesh Ltd.
Singer Bangladesh Ltd.
Expeditors (Bangladesh) Ltd.
FOREIGN INVESTORS’ CHAMBER OF COMMERCE & INDUSTRY
“Shama Homes” Apt # C3, House # 59, Road # 01, Block – I, Banani, Dhaka-1213
Phone: 9892913, 9893049 Fax: 9893058 E-mail: ficci@bdcom.net
Minutes of the 49th Annual General Meeting of the Chamber held on
Wednesday, 28th November, 2012 at the Westin Hotel, Dhaka.
Members present in the meeting were:
SL.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Member
Asian Tyger Capital Partners (BD) Ltd.
Augere Wireless Broadband Bangladesh Ltd.
Bangladesh Edible Oil Ltd.
Berger Becker Bangladesh Ltd.
Berger Paints Bangladesh Ltd.
Britannia Properties Ltd.
Bureau Veritas (BIVAC) Bangladesh Ltd.
Chittagong Warehouses Ltd.
Citi Bank N. A.
Dachser Logistics Bangladesh Ltd.
Dachser Logistics Bangladesh Ltd.
Expeditors (Bangladesh) Ltd.
GE International Inc.-Bangladesh
Glaxo SmithKline Bangladesh Ltd.
GSP Finance Company (Bangladesh) Ltd.
Habib Bank Ltd.
Jenson & Nicholson Bangladesh Ltd.
“K” Line Bangladesh Ltd.
Linde Bangladesh Ltd.
Novo Nordisk Pharma (Pvt.) Ltd.
Pacific Bangladesh Telecom Ltd.
Standard Chartered Bank
Surmah Valley Tea Co. Ltd.
The Lungla (Sylhet) Tea Co. Ltd.
The UAE-Bangladesh Investment Co. Ltd.
Unilever Bangladesh Ltd.
Represented by
Mr. Minhaz Zia
Mr. Faisal Hyder
Mr. Inam Ahmed
Mrs. Rupali Chowdhury
Mrs. Rupali Chowdhury
Mr. Abdur Rouf
Dr. A. Qayyum Khan
Mr. Imran Ahmed
Mr. Rashed Maqsood
Mr. Syed Sadaquat Hossain
Mr. Jahangir Alam Sarker
Mr. Syed Ershad Ahmed
Mr. Sartaj Bhuiyan
Mr. M. Azizul Huq
Mr. Feroz U. Haider
Mr. Asaf Shaikh
Mrs. Rupali Chowdhury
Mr. Asif A. Chowdhury
Mr. Erphan S. Matin
Mr. A. Rajan Kumar
Mr. Mehboob Chowdhury
Mr. Chowdhury Maq Sarwar
Mr. Imran Ahmed
Mr. Imran Ahmed
Dr. S. M. Akbar
Mr. Kamran Bakr
The President of the Chamber and Chairman of the meeting, Mr. Syed Ershad
Ahmed took the chair at 7:45 p.m. and there being quorum, called the 49 th Annual
General Meeting of the Chamber to order and read out the Notice thereof which was
circulated among all the members earlier.
President speech earlier circulated has been taken as read.
8
Thereafter, the Chairman of the meeting and the President of the Chamber, Mr. Syed
Ershad Ahmed presented the Annual Report of the Chamber for the year ended 30 th
June 2013 on behalf of the Chamber Committee and thereafter, following business
were transacted as per set agenda:
AGENDUM – 1
The Chairman of the meeting invited comments from the members present on the
Annual Report of the Chamber for the year ended 30th June 2012 as presented by him
earlier.
There was no comment from any quarter.
Thereafter, Mr. Asif A. Chowdhury proposed the following resolution for its
adoption:
“That the Annual Report of the Chamber for the year ended 30th June 2012 as
presented by the President of the Chamber on behalf of the FICCI Executive
Committee and as circulated among all the members of the Chamber earlier, be
received and adopted.”
Mr. Rashed Maqsood seconded the resolution. It was then put to vote by the
Chairman of the meeting and there being no vote against, declared the same as
passed nem con and the resolution was thus adopted.
AGENDUM – 2
The Chairman of the meeting invited comments from the members present on the
Annual Accounts of the Chamber for the year ended 30th June 2013 as audited and
certified by the Chamber’s auditors, M/S. Hoda Vasi Chowdhury & Co. and as
circulated among all the members earlier along with the Annual Report of the
Chamber for the period.
There was no comment from any one present in the meeting.
Thereafter, Dr. S. M. Akbar proposed the following resolution for its adoption:
“That the Annual Accounts of the Chamber for the year ended 30th June 2012 as
audited and certified by the Chamber’s auditors, M/S. Hoda Vasi Chowdhury & Co.
and as circulated among all the members of the Chamber earlier, be received and
adopted.”
Mr. Asaf Shaikh seconded the resolution. It was then put to vote by the Chairman of
the meeting and there being no vote against, declared the same as passed nem con
and the resolution was thus adopted.
9
AGENDUM – 3
The Chairman informed the meeting that till date the Chamber received only one
application i.e. from M/S. Hoda Vasi Chowdhury & Co., Chartered Accountants for
their appointment as the Chamber’s auditors for the 2012-13 fiscal year at an annual
fee of Tk.30,000.00 (Taka thirty thousand only). He then invited comments from the
members present.
There was no comment from any quarter.
Thereafter, Mr. Rashed Maqsood proposed the following resolution for its adoption:
“That M/S. Hoda Vasi Chowdhury & Co., Chartered Accountants, be appointed as
the Chamber’s auditors for the 2012-13 fiscal year at an annual fee of Tk.
30,000.00(Taka thirty thousand only).”
Mrs. Rupali Chowdhury seconded the resolution. It was then put to vote by the
Chairman of the meeting and there being no vote against, declared the same as
passed nem con and the resolution was thus adopted.
VOTE OF THANKS
FICCI Executive Committee Member, Mr. M. Azizul Huq offered the vote of thanks
to the President of the Chamber and the Chairman of the meeting for conducting the
49th Annual General Meeting in a smooth and befitting manner. He thanked the
other Executive Committee Members for their co-operation in running the affairs of
the Chamber during the period. He also thanked the FICCI Members present and the
Executive Director for their co-operation and support.
There being no other business to transact, the meeting was adjourned at 8:30 p.m.
Executive Director
Chairman of the meeting
10
ANNUAL REPORT
2012-13
The Committee is pleased to present the Annual Report of the Foreign Investors’
Chamber of Commerce & Industry for the year ended 30th June 2012 as under:
MEMBERSHIP
Ordinary Members
Sl.
Name of the Company
33
1 A & A Handbag Bangladesh Ltd.
34
2 ACS Textiles (Bangladesh) Ltd.
35
3 Acorn Infrastructre Services Ltd.
36
4 AEI-English Electric of Bangladesh Ltd.
37
5 Agility Limited
38
6 Airtel Bangladesh Ltd.
39
7 Amann BangladeshLtd
40
8 American Life Insurance Company
41
9 Asian Consumer Care Pvt. Ltd.
42
Asia Energy Corporation (Bangladesh) PTY 43
10
Ltd.
44
11 Asian Paints (Bangladesh) Ltd.
45
12 Asian Tiger Capital Partners (BD) Ltd.
46
13 Atlas Copco (Bangladesh) Ltd.
47
14 Augere Wireless Broadband Bangladesh Ltd.
48
15 Bank Alfalah Limited
49
16 Bangladesh Edible Oil Ltd.
17 BASF Bangladesh Limited
50
18 Bayer CropScience Ltd.
51
19 Bangladesh Edible Oil Ltd.
52
20 Bata Shoe Co. (Bangladesh) Ltd.
53
21 Bergen Engines Bangladesh Private Ltd.
54
22 Berger Becker Bangladesh Limited
55
23 Berger Paints Bangladesh Limited
56
24 Bitopi Advertising Ltd.
57
25 Blossom Textiles Ltd.
58
26 BMT International Ltd.
59
27 Braitrim Plastiform Bangladesh Ltd.
60
28 Britannia Properties Ltd.
61
29 BRAC EPL Stock Brokerage Ltd.
62
30 British American Tobacco Bangladesh Co. Ltd.
63
31 Britannia Properties Ltd.
64
32 BT Communications Bangladesh Ltd.
65
11
Bureau Veritas (Bivac) Bangladesh Ltd.
Burroughs Wellcome & Co. (Bangladesh) Ltd.
Cemex Cement Bangladesh Ltd.
Checkpoint Systems Bangladesh Ltd.
Chevron Bangladesh
Chittagong Warehouses Limited
Chang Jin (BD) Co. Ltd.
Chung Hua Aluminium Industry Ltd.
Citibank N.A.
Clariant (Bangladesh) Limited
CMA CGM Bangladesh Shipping Ltd.
Coats Bangladesh Limited
Coats Crafts Bangladesh Ltd.
Coca-Cola Far East Ltd., Bangladesh Branch
Commercial Bank of Ceylon Plc.
Compustar Private Ltd.
ConocoPhillips Bangladesh Exploration 10/11
Ltd.
Cosmopolitan Industries (Pvt.) Ltd.
Dachser (Bangladesh) Ltd.
Daeyu Bangladesh Limited
Dart Global Logistics (Pvt.) Ltd.
Denim Expert Limited
Deundi Tea Company Limited
Dhakarea Ltd.
DHL Global Forwarding (Bangladesh) Ltd.
DHL Worldwide Express (BD) Pvt. Ltd.
Dimensions Limited
Donnet International (BD) Ltd.
DSU Trading Limited
ECTA Dhaka Ltd.
DuPont Bangladesh Limited
Emirates Airlines
Emirates Cement Bangladesh Ltd.
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
Epic Garments Manufacturing Co. Ltd.
Etihad Airways PJSC
Everest Rug Production Ltd.
Expeditors (Bangladesh) Limited
Forever Living Products Bangladesh Ltd.
Fun Factory Ltd.
GE Healthcare Bangladesh Ltd.
GE International Inc. Bangladesh
GlaxoSmithKline Bangladesh Ltd.
Global Attire Ltd.
GrameenPhone Limited
Graphic People Ltd.
G4S Security Services Bangladesh (P) Ltd.
GSP Finance Company (Bangladesh) Ltd.
Habib Bank Ltd.
Haripur Power Ltd.
Heidelbergcement Bangladesh Ltd.
Holcim (Bangladesh) Ltd.
ICB Islamic Bank Limited
ICICI Bank Ltd.
IKEA Trading (Hong Kong) Ltd.
122 Perfect Beverage & Food Industries Ltd.
123 Perfetti Van Melle Bangladesh (Pvt.) Ltd.
124 Philip Morris Services India, SA
91
92
Industrial Promotion and Development
Company (IPDC) of Bangladesh Ltd.
Intertek Bangladesh Limited
Intelligent Image Management Ltd.
Jenson & Nicholson (Bangladesh) Ltd.
Jin-Su Industries Ltd.
Kadena Sportwear Ltd.
93
94
Karnaphuli Fertilizer Company Limited
Kuehne + Nagel Limited
95
96
97
98
Lafarge Surma Cement Ltd.
Lal Teer Seed Limited
99
LM Ericsson Bangladesh Ltd.
87
88
89
90
106 Mundipharma (Bangladesh) Pvt. Ltd.
107 Mustafa Mart Pvt. Ltd.
108 Nassa Taipei Textile Mills Ltd.
109 Nestle Bangladesh Limited.
110 Niko Resources Bangladesh Limited
111 Nilorn Bangladesh Ltd.
112 Nokia EA Limited
113 Nokia Siemens Networks Bangladesh Ltd.
114 Novartis (Bangladesh) Limited
115 Novo Nordisk Pharma (Pvt.) Ltd.
116 O & M Solutions Bangladesh Ltd.
117 Orascom Telecom Bangladesh Limited
118 Orient Energy Systems Ltd.
119 Pacific Bangladesh Telecom Ltd.
120 Pan Pacific Sonargaon Hotel
121 Paxar Bangladesh Ltd.
125 Pidilite Speciality Chemicals Bangladesh Pvt.
Ltd.
126 Pies Caudrados Bangla Ltd.
127 Playdom Bangladesh Pvt. Ltd.
128 Premier LP Gas Ltd.
129 Procter & Gamble Bangladesh Limited
130 Qatar Airways
131 R-Pac (Bangladesh) Ltd.
132 Radisson Water Garden Hotel Dhaka
133 R.A.K Ceramics (Bangladesh) Ltd.
134 RAK Piling Bangladesh Pvt. Ltd.
135
136
137
138
Li & Fung (Bangladesh) Ltd.
Linde Bangladesh Limited
100 LR Global Bangladesh Asset Management
Company Ltd.
101 LSI Industries Ltd.
102 Maersk Bangladesh Limited
103 Marico Bangladesh Ltd.
104 Meghna Energy Limited.
105 Meghnaghat Power Co. Ltd.
12
R.A.K. Power Pvt. Ltd.
Reckitt Benckiser (Bangladesh) Ltd.
Reed Consulting Bangladesh Ltd.
Revlon Trading Bangladesh Private Ltd.
139 Robi Axiata Ltd.
140 Roche Bangladesh Limited
141 Sanofi-Aventis Bangladesh Ltd.
142 Santos Sangu Field Ltd.
143 Satexco Limited.
144 Saudi-Bangladesh Industrial & Agricultural
Investment Co. Ltd. (SABINCO)
145 Scanwell Logistics Bangladsh Pvt. Ltd.
146 Schlumberger SEACO Inc
147 Seven Circle (Bangladesh) Ltd.
148 SGS Bangladesh Limited
149 Siemens Bangladesh Limited
150 Singer Bangladesh Limited
151 S.P.M. Designs Limited
152 Standard Chartered Bank
153 State Bank of India
154 Su-Jin Industries Ltd.
155 Sun Pharmaceutical (Bangladesh) Ltd.
156 Sun Resources Bangladesh Ltd.
157 Supintex Bangladesh Ltd.
158 Surmah Valley Tea Company Limited
159 Synergies Sourcing Bangladesh Ltd.
160 Syngenta Bangladesh Ltd.
161 Thakral Information Systems Private Ltd.
163 The Hongkong & Shanghai Banking
Corporation Ltd. (HSBC).
164 The Lungla (Sylhet) Tea Co. Ltd.
165 Trust Solutions Private Ltd.
166 Tullow Bangladesh Limited
167 Tyser Risk Management (Bangladesh) Ltd.
168 Unilever Bangladesh Ltd.
169 Unilliance Textiles Ltd.
170 United Surgical Ltd.
171 UTI Pership (Pvt.) Ltd.
172 Wartsila Bangladesh Ltd.
173 Whitex Garments (BD) Pvt. Ltd.
174 Woody Bangladesh Co. Ltd.
175 Woori Bank.
176 Youngone (CEPZ) Limited
177 Zuellig Pharma Bangladesh Ltd.
162 Thakral One Private Ltd.
Associate Members
1.
2.
3.
4.
5.
6.
7.
Apollo Hospitals Dhaka
Acorn Infrastructure Services Ltd.
Barakatullah Electro Dynamics Ltd.
Bitopi Advertising Ltd.
Dutch-Bangla Bank Limited
DK Knitwear Limited
Fibre Optic Network Solutions (BD) Ltd.
8. HTL Logistics (BD) Limited
9. Hellmann Worldwide Logistics Ltd.
10. “K” Line Bangladesh Limited
11. R.A.K Paints Pvt. Ltd.
12. R.A.K Pharmaceuticals Pvt. Ltd.
13. Star Ceramics Pvt. Ltd.
14. United Leasing Company Ltd.
15. RAK-MOSFLY (Bangladesh) Pvt. Ltd.
MEMBERS WHO CHANGED NAMES DURING THE YEAR
1. Dupont Bangladesh Ltd.
[Formerly: E. I. DuPont India Pvt. Ltd.]
THOSE WHO LOST MEMBERSHIP DURING THE YEAR
1.
2.
3.
4.
5.
6.
7.
APL (Bangladesh) Ltd.
[For non-payment of annual dues ]
Alcon Pharmaceuticals Ltd.
[
Do
]
Cosmopolitan Fashion Ind. Ltd.
[
Do
]
Pacific Zipper Bangladesh Ltd.
[
Do
]
Japan Garden City Ltd.
[
Do
]
KMH Junan International Ltd.
[
Do
]
The General Electric Company of Bangladesh Ltd. [
Do
]
13
NEW MEMBERS ADMITTED DURING THE YEAR
1. A & A Handbag Bangladesh Ltd.
2. Amann BangladeshLtd.
3. Barakatullah Electro Dynamics Ltd.
4. Bergen Engines Bangladesh Private Ltd.
5. Burroughs Wellcome & Co. (Bangladesh) Ltd.
6. Chang Jin (BD) Co. Ltd.
7. Dart Global Logistics (Pvt.) Ltd.
8. Denim Expert Ltd.
9. DHL Global Forwarding (Bangladesh) Ltd.
10. Hellmann Worldwide Logistics Ltd.
11. Nilorn Bangladesh Ltd.
12. Perfect Beverage & Food Industries Ltd.
13. R-Pac (Bangladesh) Ltd.
14. Scanwell Logistics Bangladesh Pvt. Ltd.
15. Sun Resources Bangladesh Ltd.
16. UTI Pership (Pvt.) Ltd.
FICCI COMMITTEE
President
Mr. Syed Ershad Ahmed
CM & Managing Director
Expeditors (Bangladesh) Ltd.
Vice-President
Mr. Jim McCabe
Chief Executive Officer
Standard Chartered Bank
Committee Members
Mr. Ariel Miranda
Managing Director
SGS Bangladesh Ltd.
Mr. A. Qayyum Khan Ph.D
Managing Director
Bureau Veritas (Bivac) Bangladesh Ltd.
Mr. Arun Kaul
Mr. Debasish Deb
Managing Director
Country Manager
British American Tobacco Bangladesh Co. Ltd. Coca-Cola Far East Ltd., Bangladesh
Branch
Mr. Kamran Bakr
Chairman & Managing Director
Unilever Bangladesh Ltd.
Mr. M Azizul Huq
Managing Director
GlaxoSmithKline Bangladesh Ltd.
Mr. Mehboob Chowdhury
Chief Executive Officer
Pacific Bangladesh Telecom Limited
Ms. Rachel Wu
Executive Director
LSI Industries Ltd.
14
Mr. Rashed Maqsood
Managing Director & Citi Country Officer
Citibank N.A.
Mr. Rodney J. Reed
Chairman & Managing Director
Reed Consulting Bangladesh Ltd.
Ms. Rupali Chowdhury
Managing Director
Berger Paints Bangladesh Ltd.
Dr. S. M. Akbar
Managing Director
The UAE-Bangladesh Investment
Company Ltd.
Mr. Selim A. Chowdhury
Managing Director
G4S Security Services Bangladesh (P) Ltd.
Mr. M. A. Matin
Executive Director
15
FICCI Committee in Picture
Mr. Syed Ershad Ahmed
President
Mr. Jim McCabe
Vice – President
Mr. Ariel Miranda
Member
Mr. A Qayyum Khan Ph.d
Member
Mr. Arun Kaul
Member
Mr. Debasish Deb
Member
Mr. Kamran Bakr
Member
Mr. Mehboob Chowdhury
Member
Mr. Azizul Huq
Member
Mr. Rashed Maqsood
Member
16
Ms. Rachel Wu
Member
Ms. Rupali Chowdhury
Member
Mr. Rodney James Reed
Member
Dr. S. M. Akbar
Member
Mr. Selim A. Chowdhury
Member
Mr. M. A. Matin
Executive Director
17
SUB-COMMITTEES
Strategy & Planning Sub-Committee
Mr. M. Azizul Huq, MD, GlaxoSmithKline Bangladesh Ltd.
Dr. A. Qayyum Khan, MD, Bureau Veritas (Bivac) Bangladesh Ltd.
Mr. Debasish Deb, CM, Coca-Cola Far East Ltd. Bangladesh Branch
Mr. Kazi Samiur Rahman, MD & Country Representative, Premier LP Gas
Ltd.
Mr. Rodney J. Reed, Chairman& MD, Reed Consulting Bangladesh Ltd.
Convener
Member
"
"
"
Membership Sub-Committee
Ms. Rachel Wu, Executive Director, LSI Industries Ltd
Mr. Debasish Deb, CM, Coca-Cola Far East Ltd. Bangladesh Branch
Ms. Rupali Chowdhury, MD, Berger Paints Bangladesh Ltd.
Mr. Selim A. Chowdhury, MD, G4S Security Services Bangladesh (P) Ltd.
Convener
Member
"
"
Power & Energy Sub-Committee
Mr. Geoffrey Strong, President, Chevron Bangladesh
Mr. Gary Lye, MD, Asia Energy Corp. (Bangladesh) PTY Ltd.
Mr. Andrew De Garis, President, Santos Sangu Field Ltd.
Mr. Alan Reid Marshall, Tullow Bangladesh Ltd.
Mr. Kazi Samiur Rahman, MD & Country Representative, Premier LP Gas
Ltd.
Mr. Muhammad Reazuddin Chow, CM, Schlumberger SEACO Inc.
Mr. Salahuddin Ahmad, CEO, Karnaphuli Fertilizer Co Ltd.
Mr. Sartaj Bhuiyan, Director, GE International Inc.-Bangladesh
Mr. Shouvik Bhattacharya, MD & CEO, Siemens Bangladesh Ltd.
Mr. Tom Earley, MD, ConocoPhillips Bangladesh Exploration 10/11 Ltd.
Convener
Member
"
"
"
"
"
"
"
"
Transportation & Logistics Sub-Committee
Mr. Rafi Omar, MD, Kuehne + Nagel Ltd.
Mr. Asif A. Chowdhury, MD, “K” Line Bangladesh Ltd.
Mr. Sadaquat Hossain, MD, Dachser Bangladesh Ltd.
Mr. K. Ashraful Kabir, CM, Etihad Airways
Mr. Nelum Attanayake, MD, CMA CGM Bangladesh Shipping Ltd.
Mr. Nooruddin Chowdhury, CM, DHL Global Forwarding (BD) Ltd.
Mr. Kalim Iqbal, CM, HTL Logistics (BD) Ltd.
Mr. Shamim Ul Huq, MD, Maersk Bangladesh Ltd.
18
Convener
Member
"
"
"
"
Telecom Sub-Committee
Mr. Mehboob Chowdhury, CEO, Pacific Bangladesh Telecom Ltd.
Mr. Chris Tobit, Managing Director & CEO, Airtel Bangladesh Ltd.
Mr. D. S. Faisal Hyder, MD, Augere Wireless Broadband Bangladesh Ltd.
Mr. Gary Dewing, MD, LM Ericsson Bangladesh Ltd.
Mr. Michael Kuehner, MD & CEO, Robi Axiata Ltd.
Mr. Radi Ahmed Chow., MD, Nokia EA Ltd.
Mr. Tore Johnsen, CEO, GrameenPhone Ltd.
Mr. Ziad Shatara, CEO, Orascom Telecom Bangladesh Ltd.
Convener
Member
"
"
"
"
"
"
Trade, Tariff, Taxation & Company Affairs Sub-Committee
Dr. A. Qayyum Khan, MD, Bureau Veritas (Bivac) Bangladesh Ltd.
Mr. Abdul Khalek, Director Finance, Berger Paints Bangladesh Ltd
Mr. Arun Kaul, MD, British American Tobacco Bangladesh Co. Ltd.
Mr. Mohammad Sanaullah, Director, Corporate Affairs & Company
Secretary, Singer Bangladesh Ltd.
Mr. M Nurul Alam, IA Sr. GM & Company Secretary, Orascom Telecom
Bangladesh Ltd.
Mr. Nazmul Hossain, Finance Director, Linde Bangladesh Ltd.
Mr. Sarwar Azam Khan, Finance Director & Company Secretary,
GlaxoSmithKline Bangladesh Ltd.
Mr. Sudipta Dey, Finance & Control Director, Nestle Bangladesh Ltd.
Mr. Tusher Bhowmik, CFO, Zuellig Pharma Bangladesh Ltd.
Convener
Member
"
"
"
"
"
"
"
Pharmaceutical Sub-Committee
Mr. M. Azizul Huq, MD, GlaxoSmithKline Bangladesh Ltd.
Dr. Asim Jamal, MD, Sanofi-Aventis Bangladesh Ltd.
Mr. Mohammad Afroz Jalil, Country Manager, Roche Bangladesh Ltd.
Mr. Philip Kahn, MD, Zuellig Pharma Bangladesh Ltd.
Mr. Prasanta Das, RSM, Sun Pharmaceutical (BD) Ltd.
Convener
Member
"
"
Banking & Financial Services Sub-Committee
Mr. Jim McCabe, CEO Bangladesh, Standard Chartered Bank
Mr. Asaf Shaikh, GM, Habib Bank Ltd.
Mr. Andrew Tilke, CEO, The Hongkong & Shanghai Banking Corporation
Mr. K M Zakaria, Treasury Sr. GM, Orascom Telecom Bangladesh Ltd.
Mr. Rashed Maqsood, MD & Citi Country Officer, Citibank N.A.
Mr. Reaz Islam, CEO & Director, LR Global Bangladesh Asset Management
Company Ltd.
Mr. M. Ala Uddin Ahmad, FCA, Sub-Regional CFO, ALICO
Dr. S. M. Akbar, MD, The UAE-Bangladesh Investment Co. Ltd.
Mr. S. Prabagar, Country Manager, Commercial Bank of Ceylon Ltd.
19
Convener
Member
"
"
"
"
"
"
HR & Employees Welfare Sub-Committee
Mr. AKM Firoz Alam, Director, HR, GlaxoSmithKline Bangladesh Ltd.
Mr. Akhteruddin Mahmood, Director, HR, Nestle Bangladesh Ltd.
Mr. Faija Sajia Ansari, Head of HR, Reckitt Benckiser Bangladesh Ltd
Mr. Habibur Rahman, Head of HR, Bata Shoe Co. BD. Ltd.
Mr. M. M. Ferdous, Head of HR, Singer Bangladesh Ltd.
Ms. Saiqa Mazed, Head of HR, Linde Bangladesh Ltd
Convener
Member
"
"
"
Social Responsibilities Sub-Committee
Mr. Rodney Reed, Chairman& MD, Reed Consulting Bangladesh Ltd.
Convener
Mr. Anowarul Amin, External Communication & CSR Manager, British
Member
American Tobacco Banglades
Mr. Ariel Miranda, MD, SGS Bangladesh Ltd.
Mr. Ashiqur Rahman, Head of Marketing, Bayer Cropscience Ltd.
"
Mr. Ataul Hoque, External Affairs & CSR Manager, Tullow Bangladesh Ltd.
"
Ms. Farhana Tofail, Communication Manager, Sanofi Aventis
Ms. Lina Ferdows, Manager, PR & CSR NEPC, Meghnaghat Power Co. Ltd.
Mr. Lutful Quddus Mamun, ICB Islamic Bank Ltd.
Mr. Mohiuddin Babar, Vice President, Corporate Affairs, Regulatory Affairs
& Legal, Robi Axiata Ltd.
Mr. Mohammad Sanaullah, Company Secretary, Singer BD
Ms. Shamima Akhtar, Manager PR, CSR and Marketing Projects, Augere
Wireless Broadband Bangladesh Ltd.
Mr. Md. Mizanur Rahman, Talent Management Manager, Linde Bangladesh
Ltd.
Mr. Jerry Jose, Director, HR, Unilever Bangladesh Ltd.
Mr. O. Ejaz, EAD, Chevron Bangladeh
Ms. Rachel Wu, Executive Director, LSI Industries Ltd
"
** The President of the Chamber is ex-officio member of every Sub-Committee as per Article-41 of
the Chamber's Articles of Association.
ADMINISTRATION
The Chamber is located at “Shama Homes” Apt # C3, House # 59, Road # 01, Block – I,
Banani, Dhaka-1213 and the mailing address continued to remain same. The contact
phone and fax numbers are being - Phone: 9892913, 9893049 Fax: 9893058. E-mail:
ficci@bdcom.net and website remained unchanged.
Mr. M. A. Matin continued his services with the Chamber as its Executive Director.
20
MONTHLY BULLETIN
The Chamber continued publication of Monthly Bulletins regularly highlighting its
activities during the month and containing information on important happenings in
member companies, information relating to prevailing economic and investment
scenario in the country and trade information received by the Chamber from abroad.
These bulletins were circulated among all the members of the Chamber regularly.
Ministers, top officials of various
ministries and government authorities
concerned with trade and investment,
heads of important foreign diplomatic
missions and international agencies
based in the country are generally
invited in such meetings as guest
speakers.
CHAMBER LIBRARY
The Chamber has a small but rich
library and efforts are on towards its
further enrichment.
Following luncheon meetings were held
during the year:
In addition to some valuable books on
Trade, Industry, Management and
Information Technology received by the
chamber few years back as donations
from GATT (New WTO), International
Trade Centre (ITC), Overseas Economic
Co-operation
and
Development
(OECD), Paris and the Asia Foundation,
the Chamber continued to receive
complementary copies of publications
on a regular basis from various national
and foreign sources.
September 27, 2012: The regular
monthly luncheon meeting of the
chamber was held on the day at the
Westin Hotel, Dhaka. H. E. Heather
Cruden, High Commissioner of
Canada in Bangladesh was the Guest
of Honor on the occasion.
ACTIVITIES OF THE CHAMBER
DURING THE YEAR
Monthly Luncheon Meetings
Organizing luncheon meetings every
month is a redeeming feature of the
Chamber. Such meetings are generally
held on the last Sunday of each month
with a view to providing the CEOs and
top executives of member companies
with a forum for exchange of views
among themselves and invited guests on
issues affecting trade, industry and
businesses of the country in general and
FICCI members in particular.
Canadian High Commissioner in Dhaka Heather Cruden seen at
the monthly luncheon meeting of the Foreign Investors’
Chamber of Commerce & Industry (FICCI). FICCI President
Syed Ershad Ahmed (second from right), Executive Director,
M.A. Matin (extreme right) and FICCI Committee Member M
Azizul Haque (extreme left) also seen in the picture.
October 21, 2012: The regular monthly
luncheon meeting of the chamber was
held on the day at the Westin Dhaka.
Professor
Ainun
Nishat,
Vice
Chancellor, BRAC University was the
Guest of Honor on the occasion.
21
BRAC University Vice Chancellor Prof. Ainun Nishat speaking
at the monthly luncheon meeting of the Foreign Investors’
Chamber of Commerce & Industry at Westin Dhaka on October
21, 2012. FICCI President Syed Ershad Ahmed (second from
right), Executive Director,M A Matin (extreme right), Vice
President Jim McCabe (extreme left) also seen in the picture.
Ms. Ellen Goldstein of World Bank seen in Monthly Luncheon
Meeting of the Chamber on January13, 2013. Seen on her left
President of the Chamber, Mr. Syed Ershad Ahmed, on here
extreme left Executive Director of FICCI, Mr. M. A. Matin, on
her right Vice President of
the Chamber Mr. Jim McCabe.
November 19, 2012: The regular
Monthly Luncheon Meeting of the
Chamber was held on the day at the
Westin Dhaka. US Ambassador, H.E.
Dan W Mozena was the Chief Guest
on the occasion.
March 31, 2013: The regular Monthly
Luncheon meeting of the Chamber
held on the day. Chairman of the
National Board of Revenue Mr. Md.
Ghulam Hossain was the Chief Guest
on the occasion.
US Ambassador, H. E. Dan W. Mozena speaking at the
Monthly Luncheon Meeting of the Chamber at Westin Dhaka
on November 19, 2012. FICCI President Syed Ershad Ahmed
(second from right), Executive Director, M A Matin
(extreme right), Vice President Jim McCabe (extreme left) also
seen in the picture.
Mr. Md. Ghulam Hussain, Chairman, NBR, at the Monthly
Luncheon meeting of the Chamber, on his left President of the
Chamber Mr. Syed Ershad Ahmed, Executive Director Mr. M.
A. Matin on his far left & Mr. Arun Kaul on his right in the
picture.
January 13, 2013: The regular Monthly
Luncheon Meeting of the Chamber
held on the day at the Westin Dhaka.
Country Director of World Bank, Ms.
Ellen Goldstein was the Guest of
Honor on the occasion.
May 15, 2013: The regular Monthly
Luncheon meeting of the Chamber
held on the day. Country Director of
Asian Development Bank Ms. Teresa
Kho was the Guest of Honor on the
occasion.
22
December 02, 2012: A meeting of the
Chamber Committee was held on the
day at FICCI Conference Room with
President Mr. Syed Ershad Ahmed in
the chair.
January 13, 2013: A meeting of the
chamber committee was held on the
day at the Ballroom – 3 of Westin
Dhaka with Mr. Syed Ershad Ahmed
in the chair.
Country Director of ADB Ms. Teresa Kho speaking at FICCI’s
Monthly Luncheon Meeting. Also seen in the picture, sitting
from left, Vice President of the Chamber Mr. Jim McCabe,
President Mr. Syed Ershad Ahmed & Executive Director Mr.
M. A. Matin.
February 03, 2013: A meeting of the
chamber committee was held on the
day at the FICCI Conference Room
with Mr. Syed Ershad Ahmed in the
chair.
April 07, 2013: A meeting of the
chamber committee was held on the
day at the FICCI Conference Room
with Mr. Syed Ershad Ahmed in the
chair.
Committee Meetings
Following meetings of the Chamber
Committee were held during the year:
July 01, 2012: A meeting of the
Chamber Committee was held on the
day at the FICCI Conference Room
with Mr. Syed Ershad Ahmed
President of the Chamber was in the
chair.
May 12, 2013: A meeting of the
Chamber Committee was held on the
day at the FICCI Conference Room
with Mr. Jim McCabe in the chair.
June 05, 2013: A meeting of the
chamber committee was held on the
day at the FICCI Conference Room
with Mr. Syed Ershad Ahmed in the
chair.
September 16, 2012: A meeting of the
chamber committee was held on the
day at the FICCI Conference Room
with Mr. Syed Ershad Ahmed,
President presiding among others.
Sub-Committee Meetings
October 04, 2012: A meeting of the
chamber committee was held on the
day at the Westin Hotel (Silver Room)
with Mr. Syed Ershad Ahmed in the
chair.
July 17, 2012: A meeting of the Power &
Energy Sub-Committee was held on the
day at the Conference Room of Chevron
Bangladesh with Mr. Geoffrey Strong,
Convenor in the chair. The meeting
reviewed the sector activities of the
Companies participated in the meeting.
November 04, 2012: A meeting of the
chamber committee was held on the
day at the FICCI Conference Room
with Mr. Syed Ershad Ahmed in the
chair.
August 27, 2012: A meeting of the CSR
Sub-Committee was held on the day at
the Conference Room of Linde
23
Bangladesh Ltd. with Mr. Rodney James
Reed in the Chair.
Sub-Committee was held on the day.
Mr. Rafi Omar of Kuehne + Nagel Ltd.
was in the chair.
October 08, 2012: A Financial SubCommittee meeting was held at the
FICCI conference room, with Mr. Jim
McCabe, Convener in the Chair.
April 15, 2013: The 6th meeting of the
Power & Energy Sub-Committee held at
the FICCI Conference Room hosted by
Premier LP Gas Ltd. & Chaired by Mr.
Geoffrey Strong, President, Chevron
Bangladesh.
October 09, 2012: A CSR Sub-Committee
meeting was held at the FICCI
conference room with Mr. Rodney J.
Reed in the chair.
June 18, 2013: HR & Employees Welfare
Sub-Committee meeting held at the
FICCI conference room on the day. Mr.
A. K. M. Firoz Alam, Convener of the
Sub-Committee presided the meeting.
October 15, 2012: A special meeting of
the Energy Sub-Committee was held at
the Westin Dhaka with the presence of
US Deputy Assistant Secretary of State
Mr. Robert Ichord, Mr. Robert M
Hollister, Mr. Denise M Marsh and Mr.
Christopher D Spitzer followed by
dinner hosted by Chevron.
June 23, 2013: A meeting of the Steering
Committee
on
Celebrating
50th
Anniversary of FICCI was held at the
Standard Chartered Head Office,
chaired by Mr. Jim McCabe, Convener
of the Sub-Committee presided the
meeting.
Other Meetings/Events
July 05, 2012: Mr. Syed Ershad Ahmed,
President & M. A. Matin, Executive
Director
of
FICCI
respectively
participated in the launching of World
Investment Report 2012 at the BOI
Conference Room on the day.
January 27, 2013: The 5th meeting of the
Power & Energy Sub-Committee held at
the FICCI Conference Room hosted by
the
Asia
Energy
Corporation
Bangladesh Ltd. & Chaired by Mr.
Geoffrey Strong, President, Chevron
Bangladesh.
August 02, 2012: FICCI President
attended a Development Dialogue of
Centre for Policy Dialogue at the BRAC
Centre on the day.
August 29, 2012: Mr. Syed Ershad
Ahmed, President, FICCI attended a
seminar organized by CanCham at the
Ruposhi Bangla Hotel on the day.
February 13, 2013: Meeting of the Trade,
Tariff, Taxation & Company Affairs
Sub-Committee was held on the day.
Mr. A. Qayyum Khan, PhD was in the
Chair.
September 13, 2012: Mr. Syed Ershad
Ahmed, President, FICCI attended a
farewell luncheon of ICC arranged in
honor of H. E. Zet Minzal Zainuddin,
Ambassador of the Indonesia to
February 26, 2013: Meeting of the
Chambers Transportation & Logistics
24
Bangladesh & Nepal on the day at
Ruposhi Bangla Hotel.
Executive Director, FICCI Mr. M. A.
Matin was present among others.
September 17, 2012: FICCI President,
Syed Ershad Ahmed attended a
dialogue on State of the Bangladesh
Economy, IMF supported program &
future outlook held on the day at the
BRAC Centre Inn auditorium organized
by Centre for Policy Dialogue (CPD).
November 05, 2012: President of the
Chamber, Mr. Syed Ershad Ahmed
attended an interview session on the
current
Economic
Situation
of
Bangladseh at Ekushey TV.
November 07, 2012: FICCI President Mr.
Syed Ershad Ahmed attended an Expert
Group Meeting arranged by CPD at the
CPD dialogue room.
October 03, 2012: President of FICCI Mr.
Syed Ershad Ahmed & Executive
Director Mr. M. A. Matin attended a
ceremony of GE at the Westin Dhaka in
honor of the visiting Chairman & CEO
of General Electric Mr. Jeffrey Immelt.
November 08, 2012: Chamber President,
Mr. Syed Ershad Ahmed attended the
CEO’s Night, jointly arranged by the
Independent & Bangladesh Society for
Human
Resources
Management
(BSHRM) at the conference room of the
Independent.
October 04, 2012: FICCI bid farewell to
its leaving Vice President Mr. Laurent
Therond at the Westin Dhaka.
October 17, 2012: FICCI Executive
Director, Mr. M A Matin attended a
workshop on Challenges for Effective &
Transparent Business organized by
Nordic Chamber.
November 12, 2012: FICCI arranged a
reception in honor of visiting Hong
Kong AmCham delegation at the
International Club Dhaka. President of
the Chamber Mr. Syed Ershad Ahmed
(middle), Vice President
Mr. Jim
McCabe (extreme right), Executive
Director Mr. M A Matin (extreme left)
are seen in the picture (below) with
visiting guests.
October 18, 2012: FICCI arranged an
Open House for its respected donors at
the chamber office.
October 30, 2012: FICCI Executive
Director, Mr. M A Matin attended a
meeting on Company Law Amendment
at the Ministry of Commerce.
November 01, 2012: Chilean National
Days was observed on the day at the
Utshab Hall of Radisson Blu. Event was
attended by the Executive Director of
the Chamber Mr. M A Matin.
November 04, 2012: Mr. John Chambers
outgoing President of Santos Sangu
Field Ltd. hosted a Farewell Reception
at his residence wherein his replacement
Mr. Andrew De Garis was present.
November 13, 2012: FICCI President
attended the launching ceremony on
‘Bangladesh
towards
Accelerated,
Inclusive & Sustainable Growth, and
25
Opportunities & Challenges organized
by World Bank at the Westin Hotel.
December 11, 2012: President of the
Chamber, Mr. Syed Ershad Ahmed
attended the meeting of ICC Executive
Committee.
November 21, 2012: NORDIC club
arranged a get together on this day.
FICCI President & Executive Director
attended the event.
December 12, 2012: Mr. Ershad Ahmed,
President, FICCI attended the 23rd
BATEXPO at BICC. Prime Minister
Sheikh Hasina was the Chief Guest.
November 22, 2012: The Acting High
Commissioner of BHC arranged a
reception on this day at the residence of
British High Commissioner. Executive
Director, Mr. M A Matin attended the
event.
December 13, 2012: President Mr. Syed
Ershad Ahmed attended the 50th
Anniversary dinner of KPMG.
December 20, 2012: FICCI President
along with others got recognition as the
CIP in a ceremony. The Honorable
Minister of Industries Mr. Dilip Barua
handed over the CIP Card.
December 04, 2012: FICCI Executive
Director, Mr. M A Matin attended the
Inaugural
Bangladesh
Investment
Summit,
sponsored
by
Standard
Charterd in Singapore. FICCI joined as a
supporting organization.
December 21, 2012: President of the
Chamber Mr. Syed Ershad Ahmed
attended
the
networking
dinner
honoring the Thai Prime Minister
organized by FBCCI at Radisson Blu.
December 05, 2012: FICCI Preseident,
Mr. Syed Ershad Ahmed attended the
event
“Positioning
Bangladesh”
organized by DCCI in association with
BUILD.
December 26, 2012: The President of the
Chamber attended the discussion on
Trade Frauds in Bangladesh: Challenges
and Remedies organized by ICC.
December 07, 2012: FICCI President Mr.
Syed Ershad Ahmed & Executive
Director, Mr. M A Matin attended the
PPP
Global
Investors’
Forum:
Bangladesh 2012.
January 05, 2013: President of the
Chamber, Syed Ershad Ahmed attended
the workshop arranged by Shippers
Council of Bangladesh. Mr. Shahjahan
Khan, Minister for Shipping was the
chief guest at the event.
December 08, 2012: President of the
Chamber Mr. Syed Ershad Ahmed
attended as a panel discussant at the
International HR Conference organized
by BSHRM. The president discussed on
“Role of Chamber Leaders in Promoting
Best HR Practices in Bangladesh”.
January 11, 2013: FICCI President
attended as the Chief Guest at the event,
Supply Chain Management Trends in
Bangladesh organized by Supply Chain
Management Society.
December 09, 2012: Executive Director,
FICCI attended the BGMEA seminar on
“Opportunities & Challenges in the
Changed Global Sourcing Scenario”.
Honorable Foreign Minister Dr. Dipu
Moni was the Chief Guest.
January 13, 2013: President Syed Ershad
Ahmed attended the seminar on
Arbitration for Business organized by
Bangladesh International Arbitration
Center (BIAC).
26
March 03, 2013: President of the
Chamber attended the meeting arranged
by Bangladesh Bank at Governor
Bhaban.
January 16, 2013: Executive Director of
the Chamber, Mr. M. A. Matin attended
the
“Korea
Classic
Concert
2013”arranged by the Embassy of the
Republic
of
Korea,
Dhaka
to
commemorate 40 years of diplomatic
relation between Bangladesh & Republic
of Korea. H.E. Mr. Hasanul Huq Inu,
Minister for Information was the chief
guest.
March 19, 2013: President Syed Ershad
Ahmed attended a meeting arranged by
ICC Bangladesh.
March 20, 2013: President of the
Chamber attended the Lunch Meeting
arranged by Emirates.
January 17, 2013: Mr. M. A. Matin,
Executive Director of FICCI attended the
CanCham 5th Networking Reception at
Canadian Club Dhaka. The event was
jointly
organized
by
CanCham
Bangladesh
&
Canadian
High
Commission in Dhaka.
March 20, 2013: President of the
Chamber Mr. Syed Ershad Ahmed
attended the signing ceremony of
syndicated term loan arranged for Barak
Patenga Power Ltd. on the day.
March 20, 2013: Mr. Abdul Khaleque,
Member of the Trade, Tariff, Taxation &
Company
Affairs
Sub-Committee
attended the pre budget discussion at
FBCCI. FBCCI President was in the
Chair.
January 19, 2013: FICCI Executive
Director attended the farewell party for
Ms. Ellen Goldstein & Yann Derriennic
as they reach the end of their tenure in
Bangladesh.
January 24, 2013: The Chamber
arranged an Annual Networking Dinner
sponsored by Pacific Bangladesh
Telecom Ltd. at the International Club
Dhaka.FICCI President,EC Members &
Executive Director of the Chamber
attended the event along with
Presidents of selected Chambers & other
distinguished invited guests.
March 24, 2013: FICCI official attended
the National Workshop on Investment
Policy Review of Bangladesh on the day.
It arranged by UNCTAD & Ministry of
Industries. Mr. Dilip Barua, Minister for
Industries was the Chief Guest.
March 26, 2013: Executive Director of
the Chamber, Mr. M. A. Matin attended
the inauguration ceremony of the new
office of French Bangladesh Chamber of
Commerce & Industry on the day.
March 28, 2013: Executive Director, Mr.
M. A. Matin attended the pre budget
discussion on the day, arranged by BoI
& Ministry of Finance. Finance Minister
Mr. A M A Muhith was the Chief Guest
at the event.
March 31, 2013: FICCI official attended
the pre budget discussion on the day,
Annual Networking Dinner: In the Pictrue, FICCI Executive Director Mr. M A
Matin in the middle, President Syed Ershad Ahmed on his right, on his far right Mr.
Humayun Rashid, President of France-Bangla Chamber of Commerce & Industry.
CEO of CityCell Mr. Mehbob Chowdhury on his left, on his far left Mr. Rashed
Maqsood, Managind Director & Country Officer Citi Bank.
27
arranged by the Ministry of Industries.
Mr. Dilip Barua was the Chief Guest at
the event.
April 09, 2013: President of the
Chamber, Mr. Syed Ershad Ahmed
attended the meeting of CHEMONICS
on
Infrastructure
and
Customs
Procedures.
April 15, 2013: The World Bank
delegation met with the Chamber
President to discuss on Investment
Climate and Possibility of FICCI to
Involve in Research.
April 29, 2013: FICCI official attended a
project inception workshop on “South
Asia Energy Security through Regional
Electricity Trade & Cooperation”
organized by the World Bank at the Pan
Pacific, Dhaka.
April 15, 2013: Executive Director of the
Chamber, Mr. M.A. Matin attended a
bilateral discussion on “Way Forward
from the Current Political Situation of
the Country” organized by the
Bangladesh – German Chamber of
Commerce & Industry.
May 05, 2013: A meeting with all
bilateral chambers was held on the day
at the FICCI Conference Room.
President of the Chamber Mr. Syed
Ershad Ahmed & Executive Director Mr.
M. A. Matin were present from FICCI.
April 17, 2013: FICCI official attended
the Asian Development Bank’s 2013
Country Programming Mission for
Bangladesh at the ADB’s Resident
Mission, Dhaka.
May 08, 2013: Executive Director of the
Chamber Mr. M. A. Matin along with
M/S. M. Azizul Huq & Kamran Bakr
attended the meeting of the 50th
Anniversary
Celebration
Steering
Committee held on the day at the
Standard Chartered Conference Room.
Convener of the committee Mr. Jim
McCabe chaired the meeting.
April 22, 2013: FICCI official attended a
bilateral discussion with Swiss Trade
Delegation arranged by the Swiss
Embassy Bangladesh at Hotel Purbani,
Dhaka.
April 24, 2013: FICCI official attended a
meeting arranged by the Ministry of
Industries
on
‘Providing
Special
Package to Enhance Industrialization to
Eminent Organizations.’
May 09, 2013: Executive Director of the
Chamber Mr. M. A. Matin attended the
reception “Celebration Europe Day” at
the Westin on the day. Foreign Minister
Dr. Dipu Moni was the Chief Guest at
the event.
April 27, 2013: A Delegation from FICCI
led by the President, Syed Ershad
Ahmed
attended
a
pre-budget
discussion with the NBR Chairman on
the day at the NBR Conference Room.
May 11, 2013: President of the Chamber
Syed Ershad Ahmed attended the 18th
Annual
Council
of
International
Chamber of Commerce (ICC).
May 14, 2013: Mr. Syed Ershad Ahmed,
President, FICCI attended an event
28
organized by the Australian High
Commission, New Delhi on Trade &
Investment in South Asia.
development” held on the day at the
Westin Dhaka. President & Executive
Director of the Chamber attended the
event. Minister for Ministry of Posts &
Telecommunication, Advocate Sahara
Khatun was the Chief Guest.
May 26, 2013: President Syed Ershad
Ahmed attended the US – Bangladesh
partnership dialogue on the day,
organized by AmCham.
June 15, 2013: President of the Chamber
Mr. Syed Ershad Ahmed & Executive
Director Mr. M. A. Matin attended the
CPD dialogue on Budget (2013-14)
Analysis at the Lake Shore Hotel on the
day.
May 28, 2013: Executive Director of the
Chamber attended the inaugural
ceremony of Green Growth &
Renewable Energy arranged by the
Danish & Norwegian Embassy at the
Westin. Dr. Tawfiq-e-Elahi Chowdhury,
BB, Adviser to the Prime Minister,
Ministry of Power, Energy & Mineral
Resources was present as a Chief Guest
on the occasion.
June 17, 2013: President of the Chamber
attended
the
discussion
of
Parliamentary Standing Committee of
Ministry of Labor and Employment, on
Amendment
of
Labor
Law
of
Bangladesh. Chaired by Md. Israfil
Alam M.P. Chairman Parliamentary
Standing Committee on Ministry of
Labor and Employment.
June 02, 2013: Executive Director of the
Chamber, Mr. M. A. Matin attended the
program on celebrating Italian National
Day at the residence of the Italian
Ambassador.
June 24, 2013: Meeting on 50th
Anniversary newspaper supplement
contents held at the meeting room of
GlaxoSmithKline. Executive Director of
the Chamber & officials from Citycell,
GSK & Unilever were present.
June 05, 2013: A meeting of the
Chamber Election Board held on the day
at the FICCI Conference Room.
Chairman of the newly formed Election
Board Mr. Syed Rezaul Karim, Mr. Syed
Pervez Ahmed & Mr. M. Nurul Alam
members of the Election Board &
Executive Director of the Chamber Mr.
M. A. Matin were present.
June 27, 2013: An interactive session
with Nepalese billionaire Mr. Binod K.
Chaudhury held at the Nepal Embassy
attended by the Executive Director, Mr.
M. A. Matin.
June 07, 2013: A post budget reaction
meeting was held on the day at the
Chambers Conference Room.
June 30, 2013: A press conference on
FICCI’s 50th Anniversary held at the
Surma Hall of Pan Pacific Sonargaon.
President Mr. Syed Ershad Ahmed, Vice
President Mr. Jim McCabe, Executive
Director Mr. M. A. Matin attended the
conference & responded to the questions
by journalists. The event was sponsored
by Standard Chartered Bank.
June 11, 2013: Executive Director of the
Chamber Mr. M. A. Matin attended the
Inaugural
Bangladesh
Investment
Summit in London, sponsored by
Standard Chartered. FICCI was the
supporting organization of the event.
June 15, 2013: A seminar of GSMA on
“Telecom
policy
for
national
29
30
FICCI'S REACTION TO 2013-14 NATIONAL BUDGET
The Foreign Investors’ Chamber of Commerce & Industry (THE CHAMBER) reviewed
the 2013-14 National Budget, as proposed by the Finance Minister on 6th June 2013 and
assessed its implications on the country’s business, in general, and foreign investment in
particular.
Following are the Chamber’s assessments:
The proposed budget of Taka 222,491 crore, which is 17.51% higher than that of last
fiscal, is somewhat challenging at the backdrop of current economic situation. The
Chamber appreciates the measures especially the budget allocation for Transport &
Communication but expressed concern of relatively lower allocation for education,
technology & health sector which is necessary for the development of human resource.
The projected borrowing apparently from banking sector will impact private sector
credit & may aggravate ongoing liquidity problem. However, the Chamber feels that it
will require strong monitoring to achieve the goals set in the budget.
The Chamber particularly appreciates the following proposals, which the Government
has made in the proposed budget:







Withdrawal of minimum tax from company which was irrational & detrimental
to the investment.
Withdrawal of tax on share premium, extension of tax exemption limit on the
dividend income of individual & thereby a stimulation to capital market. The
capital market will also be boosted up by the enhancement of investment
allowances by individual assessee.
Extension of exemption on tax from 2013-2015 for specific industry & physical
infrastructure development.
Reduction in the tax on registration of land and building & thereby a fiscal
support to real estate sector.
Reduction in customs duty leviable on intermediate & semi finished product
from 12% to 10%.
Extension of the minimum income threshold, house rent allowance & conveyance
allowance of individual assessee.
Simplification of the VAT laws pertaining to outsourcing of manufacturing
services
The Chamber expressed its concern about the following:




Provision regarding the collection of 10% tax on the differential between MRP &
manufacturer selling price, notable portion of which is surrendered by the
distributor & dealer to the consumer at the face of severe competition.
Provision for whitening of undisclosed money investing in building apartment &
land in spite of the commitment of the government at the time of making such
provision in previous fiscals.
Imposition of 5% regulatory duty on 43 items which attracts 10% customs duty at
import stage.
Revised price declaration to VAT authority with an increase in product price in
case of more than 5% increase in input cost.
31

Extension of the provision for the payment of VAT by the tenant being
manufacturer on their rented corporate office.
Besides, the proposed budget has not addressed the following recommendations made
by the Chamber:





Rationalisation of deduction of VAT at source and simplification of the procedure
of price declaration.
Withdrawal of supplementary duty on locally manufactured product.
Withdrawal of the provision regarding inadmissibility of perquisites, royalty &
technical knowhow fees.
Withdrawal of surcharge on income tax of the assessee with a net worth of Tk. 2
crore
Reduction of customs duty on raw materials from 5% to 2.5% & complete
withdrawal of duty on machinery equipments.
The Chamber feels that the proposed budget with necessary amendments will improve
the socio-economic condition of the country. However, a detailed observation on
proposed changes in law and regulation shall be given at a later date.
48th ANNUAL GENERAL MEETING
November 28, 2012: The 49th Annual General Meeting (AGM) of the Chamber was held
on the day at the Westin Dhaka. The FICCI President, Mr. Syed Ershad Ahmed was in
the Chair. (See Minutes of the 49th AGM)
Syed Ershad Ahmed
President
November 28, 2012
FICCI President, Mr. Syed Ershad Ahmed speaking at the 49th AGM at the Westin Dhaka. Seen on his right is Mr. Azizul Huq & on his left Executive Director of the
Chamber, Mr. M A Matin
32
Annexure-A
FICCI’s Proposals/Suggestions on
Duties & Tariff for the 2012-13 National Budget
MAJOR ISSUES
Sl.
No
1.
2.
3.
Existing situation
Proposal/Suggestion
Reduction of duty rates basis three-tier structure
For basic raw material For basic raw material 3%, semi5%,
semi-processed processed 10%, and finished
12%, and finished goods goods 25%. For machinery 1.5%.
25%. For machinery 3%.
Disregarding CRF value provided by the PSI agency
Customs
duty, CRF value provided by the PSI
Supplementary duty (if agent must be the base value for
any), VAT and other the imposition of tax.
duties are payable on Customs authority must accept
the Assessable Value the HS Code certified by supplier
calculated basis the CRF and PSI.
value provided by the
PSI agent appointed by If the customs authority is of the
the
Government. opinion that the CRF value is not
However, there are correct, then this can be referred
many instances that the to the Review Committee for
Customs
authority examination and thereafter
whimsically disregards appropriate action can be taken.
the CRF value certified
by the PSI agent and Specific rules for the items
arbitrarily
fix
the attract 5% duty and have option
assessable value.
to import without CRF.
Customs authority also Therefore, full implementation of
rejects the HS Code PSI Rules (SRO 255) and
certified by supplier and Valuation Rules (SRO 257) should
PSI. Consequently the be ensured.
importers are suffering
penalty and demurrage.
Detention charges during sampling period
Minimum testing time a) The testing time should be
by BSTI is 20-25 days. reduced to 7-10 days.
Detention
charges b)
Provisionary
clearance
during sampling period certificate on submission of bank
being charged from guarantee should be restored.
33
Justification
For bringing down the costs of
material
and
increasing
competitiveness
of
locally
manufactured products in the
international markets.
As the PSI agencies are
appointed,
controlled
and
supervised by the Government
and they are working on behalf
of the Government so the CRF
value and relevant HS Code
certified by them (PSI agencies)
are to be deemed to have been
declared by the Government
itself.
In most of the cases items
imported without CRF are taken
for testing. Such testing takes 2025 days and causes huge
demurrage.
Decrease in shelf life of product
due to delay in clearance.
Loss of sales & market share of
the company.
Trade and consumer
importer.
c) Demurrage during sampling dissatisfaction.
Provisionary certificate time should not be charged on
has been withdrawn.
importer
OTHER ISSUES
Sl.
No.
1.
2.
Existing situation
Proposal/Suggestion
Supplementary Duty of
Supplementary Duty on locally
15% is applicable on locally manufactured Shampoo under
manufactured Shampoos.
HS Code No. 3305.10.00 should
be abolished.
H.S. Code No. Items
3305.10.00
Shampoos
Soap sector
Custom Duty

12% on Crude Palm
Kernel
Oil
(1513.21.00),
30%
(25% + 5%) on Caustic
Soda (2815.11.00 &
2815.12.00 for solid &
liquid res.), Mixture of
Odoriferous
Substances
(3302.90.00)
This has encouraged tax evasion
on a massive scale in addition to
discouraging local manufacture
and expansion of market for
these products, which currently
also face competition from
imported & smuggled products.
Custom Duty applicable on basic  Custom Duty: Items mentioned
bulk raw materials mentioned
are basic bulk raw materials
under soap sector used for
required to manufacture soap
manufacture of soap noodles
noodles attract Duties ranging
should be merged into one from 12% to 30% (25% + 5%).
uniform & single rate of 5%.
This is an anomaly in the tariff
structure & therefore, Custom
Duty on these items should be
reduced to 5% to encourage
local value addition.
3.
Soap noodles
Sodium Salt of Palmitic
Acid (which is soap
noodles) under HS Code
Nos.
2915.70.31
and
2915.70.32 attract 25%
Custom Duty.
Custom Duty and Supplementary
Duty on Sodium Salt of Palmitic
Acid (Soap noodles) under HS
Code Nos. 2915.70.31 &
2915.70.32 should be re-fixed at
maximum rate of 25% Duty plus
20% as Supplementary Duty.
4.
Synthetic Detergent
Sector
Custom Duty
Customs Duties on all items
mentioned below should be
reduced to 5%.
Powder
Justification
12% on Sulphonic Acid (HS
Code 3402.11.10) and Sod. Sulphonic Acid (HS Code
Sulphate
(HS
Code 3402.11.10) and Sod. Sulphate
2833.11.00)
(HS Code 2833.11.00)
34
Soap noodles as described in
Explanatory Notes (Harmonized
Commodity Description & Coding
System of World Customs
Organization) is Soap & hence,
should be treated as finished
product attracting maximum rate
of
Custom
Duty
and
Supplementary
Duty
as
applicable for Soap. This will
encourage local manufacturers
to make additional investment
and thereby generate more
employment.
Items mentioned are basic bulk
raw materials required to
manufacture synthetic detergent
powders, a mass-market product
that
is
needed
for
health/hygiene & convenience of
the people. Synthetic Detergent
Powders substitute Ball Soaps
and therefore, its growth will
result in significant increase in
revenue collection for the
government. To enable the lowincome group to buy a better
product at affordable price plus
to help sustain price at current
5.
Duty @ 30% (25% + 5%) on
Germ Kill Kit (GKK), a spares
under HS code 8421.21.99 for
use in domestic type water
purifier.
Duty on Germ Kill Kit (GKK), a
spares for domestic type water
purifier should be reduced to 3%.
6.
Dental products:
Custom Duty
 Silicon
dioxide
(2811.22.00): 12%
 Sorbitol (3824.60.00)
12%
 SMFP
(2826.19.00)
12%
 Organic Surface Active
Agent
(3402.11.00)
12%
Presently the operators
pay Tk. 12% as CD on
import of each hand set
under HS Code8517.12.10.
Presently operators pay
78% duty under various
heads on import of
RUIM/SIM/Scratch cards
under HS Code-8542.39.10
& H.S. Code-4911.99.10.
Presently operators are
paying higher rate of duty
due to fixation of higher
tariff on
RUIM/SIM/Scratch cards at
customs point avoiding
Invoice price and CRF price
duly certified by the PSI
Co.
Presently operators pay
5% duty on import of
Telecom Equipment under
H.S. Code-8517.61.00
Custom duties on following basic
materials used for producing
toothpaste and shampoo should
be reduced to a single uniform
rate of 5%.
 Silicon dioxide (2811.22.00)
 Sorbitol (3824.60.00)
 SMFP (2826.19.00)
 Organic Surface Active
Agent (3402.12.00)
Reduction of duty rate for
H.S. Code-8517.69.00.
We propose that the duty rate
should be reduced to 5% from
7.
8.
9.
10.
11.
levels, to facilitate market
conversion from ball soaps,
reduction in Custom Duty is
required.
Duty @ 3% is applicable on
domestic type water purifier
which is inclusive of a spare
called Germ Kill Kit (GKK).
Therefore, Duty on Germ Kill Kit
(GKK), should be reduced to 3%
otherwise domestic type water
purifiers will not be commercially
viable for sale in the market.
Purified water per liter is much
cheaper than bottled water or
water in jerry can.
Toothpaste and shampoos are
essential for cleaning the teeth
and hair by a majority of all
income groups, i.e., related to
health & hygiene. Hence,
reduction in import duties will
enable
toothpaste
and
shampoos to be offered at more
affordable prices.
Eliminate duty on Hand Set
import.
The hand sets will be easily
reachable to the subscribers and
the mobile sector will be
expanded.
Eliminate duty on
SIM/RUIM/Scratch card import.
The cost of the connection will
be reduced and easy reachable
to the mass people.
To accept Invoice Value/CRF
value or introduce Tariff value.
To avoid delay in customs
clearance and ascertain duty
amount.
Reduce duty on import of
Telecom Equipment from 5% to
0%.
The cost of the network
expansion and up gradation will
be significantly reduced and
subscribers will be ultimately
benefited.
This reduction will accelerate the
expansion of Telecom Industry
35
25%.
12.
13.
and economy of the country will
be strengthen by means of
increasing amount of VAT,
Income Tax, Duties, FDI etc.
Arbitrary Coding for import Unique Coding for Telecom
This elimination will accelerate
of Telecom equipments
equipments and simplified
the expansion of Telecom
and complex Customs
Customs Clearance procedure
Industry and economy of the
Clearance procedure.
should be ensured.
country will be strengthen by
means of increasing amount of
VAT, Income Tax, Duties, FDI etc.
Exemption of Pre-Shipment Inspection (PSI) for Life-Saving Medical Equipment and Spare Parts,
(Spare parts for MRI, ESWL Machine, Ultra sonogram /Color Doppler machine).
H.S. Code : 9033.00.00
Pre shipment inspection
(PSI) is mandatory for
importing of spares for
exclusively useable at only
electro-medical equipment
i.e. MRI (Magnetic
Resonance Imaging) and
ultrasound/Color Doppler
Machine under H. S. Code
9033.00.00. The pre
shipment inspection
process is started by the
local PSI company, which
takes 2 (two) working days
to issue the inspection
reference number. After
issuing the inspection
reference number, the
counter part of the PSI
company starts the
inspection process at the
delivery point abroadwhich takes another 3
(three) working days.
Then, our principal delivers
the spare parts
immediately. Again after
shipment, our supplier
submit all the related
documents to PSI company
abroad to issue the clean
report findings (CRF)
certificate and PSI
company takes at least 3
(three) working days. After
getting the CRF certificate
from the PSI company, it
again takes more then 3
(three) working days to
clear the spare parts from
the customers.
Our proposal is to include spares
of such electro-medical
equipment i.e. MRI and
Ultrasound/Color Doppler under
H.S code 9018.19.00 described
other including spare parts and
accessories for all sub code of
90.18.
We, Siemens Bangladesh
Limited, deal with life saving
medical equipments, which are
used by Government, Semigovernment, Private Hospitals
and Diagnostic Centres across
the country. As these
equipments are used to save
lives, these should always be
kept in working condition. We
are committed to the customers
to provide 24 hours uptime
services. For this purposes, we
have built our strong world-class
local team and have streamlines
processes with our overseas
partners. However, all our efforts
fall short when we get
handicapped by the lengthy
importation regulations.
Consequently, a substantial
number of patients suffer
through painful ordeals because
of this lengthy process.
In short, we have to simply
sit and wait for at least 12
(Twelve) working days to
import any Spares as per
36
14.
current process because of
this PSI process. As a
result, a substantial
number of patients have
to suffer due to this
lengthy process of spares
clearance with PSI. We
would like to point out
that our principal can
deliver any spares within
12 hours of receiving the
letter of credit if it without
pre-shipment inspection.
Modifying the HS Code to make it Thorough and Understandable.
Spares of medical equipment - for X-ray , Gamma Camera.
15.
16.
H.S. Code: 9022.90.00 (Others , Including Spare Part & Accessories)
The spares parts of X-Ray. Currently HS Code 9022.90.00
As X-ray related machines are
CT scan, Angiogram, C-Arm described other, including parts
dealt under one customs
and Lithotripsy machine
and accessories which have to be structure, the related equipment
under H.S code
other including spare parts and
should also be dealt with same
9022.90.00. But some
accessories for all sub code of
duty structure.
times they allow only
90.22.
9022.90.00 for X-ray
because the X-ray code is
90.22. The other item of Xray like CT Scan, ESWL
which is also X-ray but
under sub code of 90.22,
so in those cases customs
authority referred the
code 9033.00.00 which
results a longer clearance
process due to PSI.
Exemption of Pre-Shipment Inspection (PSI) of Industry Automation related Goods
Currently in importing
Our proposal is to exempt PLC
All industry automation related
industrial automation
and related accessories from PSI. items are imported for
related good we need to
digitalizing the local industries in
complete PSI which cause
Bangladesh. If automation
us to pass a long time in
related products are exempted
procuring the automation
from PSI our full automated
goods (Like PLC and
industrialization of our country
related accessories).
will be accelerated greatly.
Moreover, the whole machine or
plant might be shut down and
there would be huge production
loss because of lingering
procedure of clearing PLC and
other automation related
equipments due to PSI.
Duty benefit on bulk import of “Preparation for Infant” compared to that of local manufacturing
products (HS Code 1901.90.30)
Vide SRO no. 334To promote local manufacture,
The said exemption will
Law/2010/2324/Shulko
which is generating employment discourage the local industry
dated 4th October 2010,
and creating value locally, we
manufacturing Infant Cereals as
the import duty for import would humbly request for
a result of competitive
of infant cereals in bulk
lowering of duty rates and
disadvantage from duty point of
covered under a newly
withdrawal of supplementary
view. If bulk packing industry is
formed H.S. Code
duty on key ingredients as
patronized in this way, no
1901.90.30 described as
mentioned in Annexure 1,
entrepreneur will come up to
“Preparation of Infant”
aligned to the above mentioned further invest in the
products has been reduced SRO.
manufacturing field.
to 5% (effective duty
37
6.11%), from 25%
(effective duty 31.61%).
17.
18.
19.
It should also be noted here that,
manufacturing sector can
contribute a lot by way of
generating employment and
increasing GDP which are very
supportive parameters to
enhance the country branding in
the international community.
Reduction of customs duty and withdrawal of supplementary duty & Regulatory duty on import
of Infant Formula in finished form (H.S. Code 1901.10.00)
Currently Customs Duty of We propose for reduction of the Duties and taxes on infant
25%, Regulatory Duty 5%
basic duty (customs duty) and
formula are very high in
and Supplementary Duty
withdrawal of supplementary
Bangladesh compared to
of 20% is levied on the
duty and Regulatory Duty at the neighboring countries (Sri Lanka
import of infant formula in import stage.
6%, Thailand 12%, and Pakistan
finished form (effective
25%). The resultant high
duty 58.14%).
consumer price of infant formula
makes it beyond reach for a large
number of mothers unfot for
breastfeeding their children.
Local manufacturing of infant
formula requires huge
investment (BDT 500+ Crore) and
also depends on the availability
of high quality fresh milk.
Withdrawal of supplementary duty and regulatory duty on import of Breakfast Cereals (H.S.
Code 1904.10.00)
Currently 25% basic duty,
We would humbly propose for
Breakfast cereals are considered
5% regulatory duty and
full withdrawal of supplementary as nutritious and healthy for
60% supplementary duty is duty and regulatory duty to
everyday diet especially for
applicable on the import of make the product more
children. Effective duties and
Breakfast Cereals,
affordable to Bangladeshi
taxes of 111.18% make breakfast
imported in finished form
consumers.
cereals extremely expensive and
(effective duties and taxes
beyond the reach of most
approx. 112%). However
consumers.
the effective duty levied in
some countries for the
It is possible that the high duty
same products are as
structure is a stimulus for
follows:
unscrupulous operators to evade
Pakistan – 51%
tax, resulting in revenue loss for
Malaysia – 5-10%
the Government. Further,
China – 5-25%
lowering of duty has the
Hong Kong – 20%
potential to develop this healthy
Singapore – nil
food segment, with the
Indonesia – nil
possibility of increased revenue
Thailand - nol
generation for the State. A
healthy breakfast will also
address the growing health
concerns of the average
Bangladeshi.
Tobacco Leaf Export Duty
Bangladesh Government
Removal of the existing 10% duty This has resulted in Bangladesh
has imposed 10% export
on export of tobacco leaf.
tobacco leaf exporting industry
duty on un-manufactured
losing competitiveness in the
tobacco (tobacco leaf) in
world market. The export orders
the budget for the FY
have declined and impacted
2010-11
foreign currency earning
potential as buyers are shifting
to markets that offer competitive
price, i.e. India, China, Malawi,
etc. We are not aware of any
other country in the world that
has export duty imposed on
tobacco leaf export. Currently,
38
Bangladeshi tobacco leaf is
exported to more than 20
countries of the world including
USA, EU, Australia and Singapore
generating some US$ 70m
(nearly TK.600 Crore).
Large scale infrastructural
investments have been made by
operators to ensure the right
quality of product. Livelihood of
thousands of marginal farmers
will be in jeopardy and export
related investments by the
companies will remain unutilized
leading to cut in export related
jobs. Restrictive policies like this
will impact their crop and
livelihood putting them back in a
cycle of poverty.
In Bangladesh, not even 1%
(around 0.7%) of agricultural
land is under tobacco cultivation.
Due to export demand, the
marginal farmers were earning
consistent prices being paid by
the tobacco companies under
contracted growing system.
Resultantly, it has
 Turned in to a prime cash
crop in the greater
Rangpur and other
tobacco growing areas.
Now, the farmers can use
the earnings from
tobacco behind other
crops as well as in
improvement of
livelihood.
 Helped poverty
alleviation-relieved
people from the curse of
Monga (seasonal famine)
in northern tobacco
growing districts.
 Generated employment
for 90,000 farmers and
agricultural labours in
these areas due to the
cultivation of export
quality tobacco with
attractive wages for
agricultural labour forces.
 Created employment of
over 100,000 people in
tobacco export related
jobs.
 Utilised fallow sandy river
beds of Teesta, Dharola,
in greater Rangpur, and
Dhaleshwari in Manikganj
for production of
profitable tobacco crop.
39
These lands are generally
not suitable for
production of food grains
such as paddy.
Different countries in the world
support export including tobacco
leaf in different ways. For
example, in neighbouring India,
the Tobacco Board of India,
under the Ministry of Commerce,
provides various supports to
tobacco leaf export in the form
of regulatory support, price and
market support, export
promotion, research and
development (R&D) and fertilizer
supply on credit with subsidies.
If this export duty is removed,
Bangladesh tobacco leaf export
can fetch around Taka 1,000
Crore in foreign currency in a
year.
20. Supplementary Duty on all Hair Oils manufactured locally should be reduced to ‘Zero’.
Brief Background of the Proposal:
(a) Usage of Coconut Oil / other oils as a Hair Oil
 Packed branded Coconut Oils are basically used as Hair Oil, which does not attract 10% SD.
 Similarly, there are other Oils also which are solely used as Hair Oil, viz. Vatika Hair Oil and
Amla Hair Oil.
(b) Duty Structure on Coconut Oil, Coconut Oil Chemically / Herbally Modified, and Other Hair Oils on
local production
HS Code
Product
SD on Local Manufacturing
1513.11.00 Crude Coconut (Copra) Oil
Nil
1513.19.90 Crude Coconut (Copra) Oil – Chemically 10%
Modified
3305.90.00 Preparation for Use on the Hair
10%
Rational Behind the Proposal:
(a) As all the above mentioned HS Code items are used for the same purpose – as hair oils, the
supplementary duty for HS Codes 1513.19.90 and 3305.90.00 too should be removed.
(b) Main and Basic intent of the legislature to impose Supplementary Duty (as per Section 7 of Vat Act)
was to bring the product category of such nature into its ambit, which are Luxury Goods, Non-essential
and Socially undesirable Goods and the other Goods and Services. Basis this all Hair oils manufactured
locally, even if containing negligible mix of fragrance/ additive for preservation purpose, should be
excluded from imposition of Supplementary duty considering basic intent of imposition of
Supplementary Duty.
(c) Hair Oil is a Necessity
 Hair Oil is a necessity product which is used by all level of the society on a daily basis.
 People of the Country have a right to get quality products at the competitive price.
(d) Development of New Products as Hair Oil
 It is a Corporate Social Responsibility for the Companies to provide quality products to the
consumers at a competitive price.
 Accordingly, we have carried out extensive research and development activity, and made new
formulations in the hair oil segment which provide several benefits to the consumers over old
traditional formulation.
40

Dabur Vatika Hair Oil and Dabur Amla Hair Oil are the example of the new products
developed for the benefit of consumers post advanced scientific research.
(e) Level Playing Field: Levy the same Duty for products with same usage
 As shown in the above table, the supplementary duty @ 0% is levied on the Crude Coconut
Oil which is basically used as Hair Oil.
 However, Supplementary Duty @ 10% is levied on Crude Coconut Oil Chemically / Herbally
modified and other Oil Preparations used as Hair Oil.
 Burden of 10% Supplementary Duty is making the Advanced and Scientifically Superior Hair
Oil costly to the consumers.
Basis the above facts and data, we request your strong recommendation for withdrawal of the
Supplementary Duty on Hair Oils. This will provide us level playing field with other products, and help us
to provide quality products to the consumers at a competitive price.
21. The SD on imported Finished Goods of Shampoo and Hair oils
The SD on imported Finished Goods of Shampoos and Hair oils has been increased to 60% from 20% last
financial year. Due to this the overall duty impact has risen to 152% from 86.43%. This has a huge
negative impact on the consumers and on us.
22. The import duty on Juices
Our brand ‘Real’ is a leader in the segment of Fruit Juices / Nectars / Drinks in India and Nepal. However
the high import duty on juices in Bangladesh - 91%, restricts us from importing our product in Bangladesh.
M.A. Matin
Executive Director
Annexure-B
FICCI’s Proposals/Suggestions on
Income Tax for the 2012-13 National Budget
MAJOR ISSUES
Sl.
No.
1.
Existing situation
Justification
Proposal/Suggestion
We recommend to eliminate this
Every company shall,
section.
irrespective of its profits
or loss in an assessment
year for any reason
whatsoever, including the
sustaining of a loss, the
setting off of a loss of
earlier year or years or
the claiming of
allowances or deductions
(including depreciation)
allowed under this
Ordinance, be liable to
pay minimum tax at the
41
I.
II.
Income tax should be based on
income, not on Revenue.
Income is computed by
deducting allowable expenses
from Revenue. This basic
postulate is ignored in
formulating this section
In order to remain unaffected by
this section, corporate body
must earn Net Profit @ 1.33%
on Revenue while this is
impossible particularly for a
manufacturing company. Net
profit earning rate varies
rate of 0.50% of the
amount representing
such company’s gross
receipts from all sources
for that year.
III.
IV.
2.
depending on the nature of
industry, size of market, age of
business house, macro
economic factors etc.
Both profit and loss are very
common phenomenon for a
commercial enterprise while
business house not making
profit is compelled to pay
minimum tax. Generally,
manufacturing companies
cannot earn income during the
initial years whereas such
companies will be required to
pay minimum tax from its
equity.
Company may incur loss and
carry it forward. This loss can be
set off against income of
following 6 years u/s 37 of
Income Tax Ordinance. The
implication of this section will
not be applicable unless the
corporate house pays minimum
tax u/s 16CCC. However, the
business loss will be lapsed
after 6 years of the year of
origination
Deduction not admissible for Royalty/technical know-how remittance (u/s 30(h) of ITO 1984)
Section 30(h) of the
Income Tax Ordinance
1984 stipulates following
inadmissible expenses
with regards to payment
of royalty, technical
service fee, technical
know-how fee or
technical assistance fee:
We, therefore, strongly urge
that the
existing disallowance
basis "8% of profits" be
changed to at least "6% of
sales” to align with the
actual commercial situation
as these expenses are based
on Sales value. It is to be
noted here that as per
30(h) any payment by
existing Foreign Exchange
way of royalty,
(FOREX) regulations and
technical service
Board Of Investment (BOI)
fee, technical know- guidelines, on account of
how fee or technical royalty/technical assistance
assistance fee
fee up to a maximum 6% of
exceeding eight per net Sales can be remitted
cent of the profit;
without any prior
42
As per this section 30(h) of the IT
Ordinance 1984, any amount paid as
royalty/technical fee exceeding 8% of
profit is treated as an inadmissible
expense. This disallowance increases the
effective tax rate for a company and is a
major deterrent for attracting FDI.
Further, a company that cannot make
profit because of long settlement period
but needs to pay royalty to bring
technology in Bangladesh will be
penalized by this tax in spite of its good
intentions of industrialization.
permission.
3.
4.
Deduction not admissible for excess perquisites (u/s 30(e) of ITO 1984)
Section 30(e) of the We, therefore, recommend This clause needs to be reviewed, as
Income Tax Ordinance that
the
existing employees’ compensation is adjusted
1984 stipulates following disallowance should be every year by the employer considering
inadmissible
expenses raised from Taka Two lakh market situation, inflation, revenue
with regards to excess fifty thousand to Taka Five expenditure of the employee, etc.
perquisites:
lakh.
Since employees are paying tax on this
perquisite, the provision is in fact an
(e) so much of the
element of double taxation which was
expenditure by an
withdrawn by our neighboring country
assessee
on
the
long back.
provision
of
perquisites,
as
defined in clause (45)
of section 2, to any
employee as exceeds
taka (two lakh fifty
thousand);
Assessment on correct return (u/s 82 of ITO 1984)
Basis Amendment made
We, therefore, recommend
This may cause unnecessary harassment
in the Finance Ordinance that this particular provision for the assessee, as the tax authority will
2008 section 82 of the
“where the Deputy
have discretionary power to disregard
ITO 1984, a return or a
Commissioner of Taxes is
any return or revised return to assess
revised return will be
satisfied” be withdrawn.
the tax based on such return.
correct and complete
Consequently, the whole assessment
without requiring the
Since the assessee is to
procedure will become very lengthy,
presence of the assessee satisfy 3 conditions denoting complicated and discretionary.
or the production of any
compliance and growth in
evidence where the DCT Tax, the provision for DCT
is satisfied and he shall
satisfaction would be
assess the total income of withdrawn.
the assessee and
determine the tax
payable by him on the
basis of such return
provided that:
 such return shall be
filed on or before the
date specified in
clause (c) of subsection (2) of section
75;
 the amount of tax
shall be paid on or
before the date on
which the return is
43
5.
filed; and
 such return does not
show any loss or
lesser income than
the last assessed
income or
assessment on the
basis of such return
does not result in
refund.
Universal Self Assessment (u/s 82BB of ITO 1984)
Section 82BB of the ITO
We, therefore, recommend
1984 stipulates that:
that tax return submitted
u/s 82BB should be accepted
 where an assessee
as correct return and 10% of
furnishes a correct
all such returns can be
and complete return
selected on a random basis
of income, the Deputy for the purpose of audit each
Commissioner of
year.
Taxes shall receive
such return himself or
cause to be received
by any other official
authorised by him and
issue a receipt of such
return and the said
receipt shall be
deemed to be an
order of assessment
for the assessment
year for which the
return is filed;
 a return shall be taken
to be complete, if it is
filed in accordance
with the provisions of
sub-section (2) of
section 75 and tax has
been paid in
accordance with
section 74;
 notwithstanding
anything contained in
sub-section (1) and
section 93, the Board
or any authority
44
If the proposed amendment is
considered, the difficulties/harassments
faced by the assessees will be
eliminated. Also as per sub-section (2) of
section 82BB of the IT Ordinance 1984, a
return shall be considered as completed
return, if it is filed in accordance with
the provisions of sub-section (2) of
section 75 and tax has been paid in
accordance with section 74. Where
section 75(2)(d) stipulates that, in case
of a company, the return shall be
accompanied by a statement of
accounts audited by a chartered
accountant. Compliance of provisions of
section 75 (2) and section 74 is well
enough to treat as correct and complete
return of income as the return is also
accompanied by a statement of
accounts audited by a chartered
accountant. On the other hand, for any
tax escaping, the Deputy Commissioner
of Taxes can always re-open the file
under section 93 without requirement
of such audit.
subordinate to the
Board, if so
authorised by the
Board in this behalf,
may select, in the
manner to be
determined by the
Board, a number of
these returns filed
under sub-section (1)
and refer the returns
so selected to the
Deputy Commissioner
of Taxes for the
purpose of audit and
the Deputy
Commissioner of
Taxes shall thereupon
proceed, if so
required, to make the
assessment under
section 83 or section
84, as the case may
be.
After introduction of the
above mentioned
provision in 2007, all
returns filed u/s 82BB
are being selected for tax
audit every year.
6.
Consequently, to satisfy
the requirements of tax
audit every year,
assessees are facing
serious
difficulties/harassments,
which is against the spirit
of section 82BB of the
Income Tax Ordinance
1984.
In the National Budget for Reinstatement of previous
FY 2011-2012, Corporate
Corporate Tax rate of 27.5%
Tax rate for BATB as a
from current 35%
cigarette manufacturer
listed in the Stock
Exchange was increased
from 27.5% to 35%.
45
This has impacted significantly the
shareholders of British American
Tobacco Company Limited (BAT
Bangladesh) among whom Government
of Bangladesh and its different
investment arms are also significant
shareholders.
BAT Bangladesh (BATB) is listed in both
Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE) from
their inception. Currently, our market
capitalisation is over Taka 3,500 Crore
and this scrip is among the Top 10
shares in terms of Market Cap in DSE.
BATB share is among the most stable
and well performing shares in the
market today enjoying highest level of
investor confidence among institutional
and retail investors.
More than 34% shares of BATB are held
by Government, its different investment
arms and local shareholders. Within
that, Government and its different arms
own more than 22% shares of the
Company. Notable shareholding is with
Investment Corporation of Bangladesh
(ICB): 17.9%, Sadharan Bima
Corporation: 2.8%, Bangladesh
Development Bank: 1% and President of
the People’s Republic of Bangladesh:
0.6%.
In the National Budget for FY 2011-12,
Corporate Tax rate for Cigarette
manufacturers has been increased from
27.5% to 35%.
Due to this large additional tax burden,
our earning per share have had a steep
fall leading to a dramatic drop in
shareholders’ return adversely
impacting Government’s dividend
revenue as well as share prices.
This contradicts the Government’s
efforts to promote a more vibrant
capital market and acts as a disincentive
to attract more companies to be listed in
the Stock Exchange. Additionally, given
the volatility of the capital markets
currently, it is important to be able to
attract more foreign institutional
46
investors in Bangladesh. However, we
believe policy decision like the abovementioned one does not help the
purpose and rather reduces the
attractiveness of Bangladeshi companies
to foreign investors.
7.
8.
9.
Provision
for
extra Reinstate extra depreciation
depreciation allowance allowance for double shift
for double shift and triple and triple shift working.
shift working has been
omitted in the Finance
Act 1998
(Third
schedule
paragraph 4)
Tax at the rate of 10% to
be deducted from
commission or fees or
allowances for the
distribution or marketing
of goods under section
53(E) of ITO 1984.
Corporate Tax
Existing Corporate
Income tax rate for nonpublicly traded
companies is 37.5%.
Reduction of the rate from
10%
1. Non-publicly traded
Companies should be treated
at par with publicly traded
companies for purposes of
corporate taxation.
2. Restore requirements of
establishing Tax Holiday
Units whereby expansion of
existing industrial units and
newly established industrial
units is allowed to encourage
industrialization & FDI.
Manufacturing industries that are
operating on multiple shift basis should
be allowed extra shift allowance for
normal wear & tear of their
manufacturing equipment.
I.
Distributor’s commission,
discount rate payable by the
Principal Company is not
significant. This is the lone
income for such business
houses while expenses under
various classes are met from
this income. Hence, deduction
of 10% is excessive.
II.
Advance tax exceeding tax
payable is refundable according
to tax law. However, in reality,
advance tax in excess of tax
liability is not being refunded to
tax payer. Hence, this is
creating serious problems for
business houses in managing
their cash flow.
Corporate tax rate for non-publicly
traded companies should be reduced in
line with neighboring as well as other
developing countries to attract more FDI
and generate more employment in the
country. In addition, the requirements
for establishing tax Holiday Units should
be restored failing which liberalization
of trade post WTO agreement, investing
countries would be encouraged to invest
where tax is lowest by diverting their
existing/proposed units.
OTHER ISSUES
Sl.
No.
1.
Existing situation
Proposal/Suggestion
Tax rebate for giving high dividend should be eligible for all
47
Justification
10% tax rebate is available
for the publicly traded
companies (other than Bank,
Insurance,
Financial
Institutions
and
mobile
phone operators) who are
giving dividend more than
20%.
2.
The above tax rebate benefit
should be eligible for all the
companies who are fulfilling the
condition of paying dividend at
more than 20%.
Final settlement of Tax liability (u/s 82C of ITO 1984
As per amendment made in
We, therefore, recommend that
the Finance Act 2011
the following sub-section of
stipulates the following in
section 82C should be removed
respect of Section 82C of the to be aligned with the spirit of
ITO 1984 that:
section 82C i.e. final settlement
 Subject to sub-sections (3), of income based on tax deducted
(4), (5), (6), (7), (8) and (9) or collected at source:
notwithstanding anything
82C(3)
contained in any other
82C(5)
provisions of this
82C(6)
Ordinance, tax deducted or 82C(7)




collected at source in
accordance with the
provisions mentioned in
sub-section (2) shall be
deemed to be the final
discharge of tax liability
form that source.
Tax deducted or collected
at source from the sources
mentioned in sub-section
(2) shall not be adjusted
against refund due for
earlier year or years or
refund due for the
assessment year from any
source other than those
mentioned in sub-section
(2).
Income from the sources
mentioned in sub-section
(2) shall be determined on
the basis of the tax
deducted or collected at
source and the rate or rates
of tax applicable for the
assessment year.
Income computed in
accordance with subsection (4) shall not be set
off with loss computed
under any other source for
the assessment year or with
loss of earlier year or
years.
Any income shown or
assessed in excess of the
amount determined in sub-
48
This will encourage Bank,
Insurance, Financial Institutions
and specially the mobile phone
operators to be converted into
publicly traded company to a
large extent and presently listed
companies will be induced to
distribute higher amount of
dividend which in result will
enrich the country’s capital
market.
This is another form of
minimum tax charge, which will
ultimately discriminate the
imposition of tax amongst the
assesses [82C(3), 82C(5)];
The existing provision may
create serious ambiguity in
terms of shown income and
thereby charging additional tax
by the authority, which is
against the spirit of the entire
section. In this regard amongst
others, mainly the exporter will
be affected seriously or
harassed in settling their tax
liability. This may ultimately
impact in overall export
business of the country [82C(6),
82C(7)];



3.
4.
a)
section (4) shall be liable
to tax at the rate or rates
applicable for the
assessment year.
Any amount not
admissible as allowances
under section 30 shall be
added to the income as
referred to in sub-section
(4).
Income referred to in subsections (6) and (7) shall
be taxable at the rate or
rates applicable for the
year after determining
income under sub-section
(4).
In addition to the tax
mentioned in this section,
in accordance with the
provisions of the Finance
Act, if any, the assessee
shall pay surcharge.
Where the said income arises
as a result of disposal by the
assessee of his capital assets
after not more than five
years from the date of their
acquisition by him, tax
payable @ 25% on the total
income including the said
income
PERSONAL INCOME TAX
Conventional Exemption
Limit
The ceiling of income is
subject to taxation started
from Tk. 180,000 per annum.
Tax payable on the said income
should be @15% regardless of
the tenure of holding.
NBR should reduce the capital
gain tax to encourage the
individual assesses to invest in
the market. There are some IPO
shares in the pipeline. The
reduction of capital gain tax and
without the limitation of tenure
will create a positive impact in
the market.
The ceiling of income not subject Considering the inflation and
to taxation should be raised from cost of living this shall be
Tk. 180,000 to Tk. 250,000 per enhanced.
annum.
b)
c)
d)
Entertainment Allowances
In the finance Act 1991,
exemption of entertainment
allowance of Tk. 4,200 per
annum in the case of
salaries assesses has been
withdrawn.
House Rent Allowance
Currently the ceiling of house
rent allowance which is
exempted from taxation is
50% of the monthly basic
salary or @ Tk. 15,000 per
month.
Our suggestion is to re-introduce This is not justified. It is
entertainment exemption
proposed to introduce in the
Tk. 10,000 per annum
light of match the cost of living.
The ceiling of house rent It is proposed for increasing the
allowance received in cash cost of hiring over the years.
exemption from taxation should
be raised from its present level
(50% of the monthly basic salary)
to 80% of basic monthly basic
salary and @ Tk. 25,000 per
49
month.
e)
Investment Allowance:
Section 44
Existing restrictions on tax
credit of the investment
allowances for individual is
ten percent on allowable
limit (20% of Total Income or
Tk. 10,000,000 whichever is
lower)
We feel this investment
allowance should be enhanced
like this:
Upto Tk. 1,000,000 tax credit 20% instead of 10%
As Incentive to the lower
income
group
towards
investment.
Upto Tk.10,000,000 tax credit 15% instead of 10%.
Existing taxable perquisite is too
high.
f)
Rent free Accommodation Rule
33 (B)
Existing taxable perquisite for
rent free accommodation is
at 25% on the basic salary.
Highest Rate of Tax for
Individual
At present the highest rate of
income tax for individual is
25 %.
5.
6.
7.
8.
9.
We suggest that the rate of
taxable perquisites should be
reduced from 25 % to 15% of the
basic salary.
We suggest reducing the rate at
20%.
25 % tax rate for individual is
very high for which individual
assessee may discourage to
submit their return.
Abuse the provisions as to Tax
Deduction at Source and resultant
disallowances of expenditure by the
Tax Authority. [Chapter VII &
Section 30 of ITO]
There is an internal communication
between NBR and LTU instructing
to
disallow
subsidy
against
RUIM/SIM tax [Memo No.
Jarabo/Kor7/A:A:B/04/2005/19(1)
Dated
15/02/2006]
Income Tax Rate for Mobile Phone
Operator -45% if not listed on Stock
Exchange and 35% if listed on
Stock Exchange. [Section 70 of the
Finance Act 2010]
Insertion of provision specifying the
requirement to deduct tax at source and
ensuring the meticulous application of
provisions regarding resultant
disallowances.
Insertion of provisions regarding
allowance of expenditure on account of
subsidy given against RUIM/SIM tax.
Disappear
the
disputes
and
misinterpretation
of
provisions
regarding tax deduction at source.
Reduction of income tax rate for mobile
phone operators from 45% to 40%
Regarding Service of Notice, the
wordings “with acknowledgement
due” was omitted. [Section 178(1)
of ITO]
No investment allowance on
investment for the purpose of
Reinstate
the
wordings
acknowledgement due”
Mobile operators have been playing
very vital role for fulfillment of
Government mandate of Digital
Bangladesh
on
time.
For
Implementation of mandate, mobile
operators required to made extensive
expansion with high quality mobile
communication services. Therefore,
government should facilitate mobile
sectors by reducing corporate taxes for
overall development of the country.
This will ensure that the recipient has
received the notice on time.
“with
Reinstate provision of investment
allowance on investment for the purpose
50
Subsidy against RUIM/SIM tax is
completely business expenditure. In
case of any arbitrary disallowance of
same expenditure, tax would be
charged twice and cost of doing
business impacted badly.
This
incentive
will
encourage
investments and strengthen the cash
10.
11.
12.
13.
14.
15.
16.
17.
BMRE of plant or machinery.
[Section 29 (1) (xa) omitted by
Finance Act 2004]
No Tax Holiday incentive for
expansion units of Mobile Phone
Company. [Section 46A amended
by Finance Act 2005]
No Accelerated Depreciation for
expansion unit of Mobile Phone
company set-up after 30 June 2005
[Para 7A of 3rd Schedule of ITO
amended by Finance Act 2005]
Though SRO No 270-Law/ 2010
the Government has granted tax
rebate at 10% on the money spent
by corporate organizations in 22
selected areas of corporate social
responsibilities. Unfortunately the
areas selected are very confined and
exclude some important areas
which are practiced by the corporate
organizations with great importance
for social development
As per para 11 (6) (a) of third
schedule of ITO 1984, in the case of
motor vehicles, being passenger
vehicles or sedan cars, not plying
for hire, the actual cost of the
vehicle to the assessee shall be
deemed not to exceed twenty lakh
taka
Employer’s
contribution
(6th
Schedule, Part-A, Para-21) to the
recognized provident fund when an
employee leaves the company
before being eligible to receive the
contribution of his employer.
Withdrawn the provisions of
Investments regarding Tax Credit
on Secondary shares, debentures
etc.
Appeal to the Appellate Tribunal
u/s 158 (2)- No appeal under subsection (1) shall lie against an order
of
the
Appellate
Joint
Commissioner or the Commissioner
(Appeals), as the case may be,
unless the assessee has paid [ten
percent] of the amount representing
the difference between the tax as
determined on the basis of the order
of
the
Appellate
Joint
Commissioner or the Commissioner
(Appeals) as the case may be, and
the tax payable under section 74
Reference to the High Court
of BMRE of plant or machinery.
flows in the year of investment
reducing tax liability.
Necessary provisions are to be inserted
to avail Tax Holiday incentive by
Mobile Phone
This
incentive
will
encourage
investments and strengthen the cash
flows in the years of investment.
Reinstate the provision for 5 years to
avail of Accelerated Depreciation
Scheme
by
making
necessary
amendment.
This
incentive
will
encourage
investments and strengthen the cash
flows in the year of investment
reducing tax liability.
Below mentioned activities should be
incorporated in the related SRO under
the purview of CSR.
Since some important areas of
practicing
CSR
by
corporate
organizations which helps in social
developments a lot has been
overlooked, if included in the list of the
SRO, will indeed inspire them to
continue the activities and ensure the
social developments through effective
participation of corporate organizations
ICT based social services in the areas of
Health, Education and environment;
Development of digitized educational
material;
Dissemination of information through
information centers for rural & hard to
reach areas; Climate change related
projects or donation for such programs
All
payment
to
any
Govt.
Organizations.
The allowable cost for the vehicle
should be increased from Tk. 20 Lac to
30 Lac.
The value of sedan car has been
increased significantly in the recent
years. The allowable cost for vehicle
(sedan) should be reviewed year on
year in line with cost of vehicle
prevailing in the country.
The contribution of employer which
was suffered at tax while assessment
and is not received in part or full by an
employee because of leaving early
without fulfilling required time, should
be inadmissible expenses.
Reinstate the provisions regarding
Investment allowances for getting tax
credit.
This will enable the employee to
receive the employer’s contribution
even he/she leaves the company at any
time.
We propose to reinstate the previous
provision i.e. five percent
Sometimes assessing authority makes
the assessment arbitrarily. In this case,
if the Appellant deposits the amount @
10% before filing an Appeal to the
Taxes Appellate Tribunal, the said
fund shall be blocked for the
Appellant. As a result, cost of doing
business
shall
be
increased
significantly for the Assessee.
We propose to reinstate the previous
Sometimes assessing authority makes
51
It will strengthen the capital market of
Bangladesh and the assesse will get tax
credit on the said investments.
Division under proviso of sec provision i.e. ten percent
160 (1)- Provided that no
reference under sub-section
(1) shall lie against an order
of the Taxes Appellate
Tribunal, unless the assessee
has paid the following tax at
the rate of(a) twenty five per cent of
the difference between the
tax as determined on the
basis of the order of the
Taxes Appellate Tribunal and
the tax payable under section
74 where tax demand does
not exceed one million taka;
(b) fifty per cent of the
difference between the tax as
determined on the basis of
the order of the Taxes
Appellate Tribunal and the
tax payable under section 74
where tax demand exceeds
one million taka:]
the assessment arbitrarily. In this case,
if the Appellant deposits the amount @
25% or 50% for filling Reference
Application to the High Court
Division, the said fund shall be blocked
for the Appellant. As a result, cost of
doing business shall be increased
significantly for the Assessee.
We propose to reinstate the provisions.
These will reduce the total income of
an assessee.
We propose that there should be no
limit.
Because this will be beneficial to get
investment rebate.
20.
Deletion of Paragraph 12, 13, 30
and 31B of
SIXTH SCHEDULE- PART A
As per SIXTH SCHEDULEPART B an amount not exceeding
taka sixty thousand by an individual
in any deposit pension scheme
sponsored by a scheduled bank
5% tax on interest of saving bonds.
No tax
To supplement income.
21.
Tax Holiday:
Continuation of Tax Holiday facility
incorporating Ceramics Industry in the
Direct List.
Ceramics Industry is highly capital
intensive, without tax holiday pay back
period become too longer to invest.
18.
19.
Ceramics Industry Tax
Holiday is Withdrawn from
Direct List.
Continuation of Reduced Rate Tax
Withdraw from Tax Holiday would be
discouraging for FDI and local
investment.
WE were encouraged to invest based
on SRO 172 and presently invested
large amount. Cancellation of the
above facility before the expiry of the
said time period would incur us huge
loss.
22.
Reduced Rate:
23.
Deposit of tax before referring to the High Court Division under section 160 of Income Tax Ordinance, 1984.
facility for Ceramics industry.
As per SRO 172 along with
other company ceramics
company set up between 1st
July 2009 to 30 June 2012 will
enjoy reduced rated tax
facility which is suddenly
cancelled by SRO 225 dated
4th July 2011.
52
As per Finance Act, 2011, before
appealing to High Court the
appellant needs to deposit:
a. 25% of the difference between
the tax as determined on the basis of
the order of the Taxes Appellate
Tribunal and the tax payable under
section 74 where tax demand does
not exceed BDT 1 million OR
24.
25.
This should be replaced by earlier
requirement of 10% of the difference
between the taxes as determined on the
basis of the order of the Taxes Appellate
Tribunal and the tax payable under
section 74.
This requirement hinders the right of
appealing against any aggrieved order
of tax authority. Moreover, existence
of such requirement will encourage the
assessing authority to make more
hypothetical assessment because
whatever assessment is made, the tax
authority will get at least 50% of tax
claim. This is nothing but hurdle to
right of getting justice.
b. 50% of the difference between
the tax as determined on the basis of
the order of the Taxes Appellate
Tribunal and the tax payable under
section 74 where tax demand
exceeds BDT 1 million.
Inclusion of mobile tower rental company in the definition of “physical infrastructure facility”
Mobile tower company is a
Infrastructure of Mobile tower Rental
Formation of mobile tower rental
prospective industry in the country
Company should be included in the
company will help to avoid repeated
on which Government has due
definition of “physical infrastructure
towers in same place of deferent
emphasis. Section 46A(1A)(ii) of
facility”
operators. This will bring savings by
Income Tax Ordinance 1984 allows
reducing investment and save
tax holiday to physical
electricity consumption.
infrastructure facility. The
definition of physical infrastructure
facility does not include
infrastructure of mobile tower rental
company.
Accelerated Amortization should be allowed license renewal
As per section 7 of Third Schedule
In section 11 of Third Schedule the
(1) Accelerated depreciation is one kind of
of Income Tax Ordinance 1984,
definition of plant should include ‘fees
fiscal incentive for investment in plant
Accelerated Depreciation
for mobile license renewal’ which
and machinery in Bangladesh. Similar
Allowance is applicable for
involves huge investment for mobile
type of fiscal incentive is not available
machinery and plant. As per section telephone operating companies
for investment in license and spectrum
11 of Third Schedule the definition
though license and spectrum are
of plant does not include any
synonymous to ‘plant and machinery’
intangible asset as ‘license renewal’
for telecom sector.
where heavy investment may have
The definition of plant in Income Tax
to make and investment incentive
Ordinance 1984 is inclusive and does
should be available. Mobile phone
not include license and spectrum. In
operating companies have to pay
tax regime like that in the UK, there is
significant amount for license
no definition of plant. That tax regime
renewal which deserves accelerated
does not define what plant is, rather
amortization incentive.
lists down what plant is not. The UK
tax regime seems to take an ‘exclusive
approach’ quite opposite to the
approach in Bangladesh. A particular
asset needs to pass certain tests set out
in Wimpy International Restaurants
Ltd vs Warland. The tests are:
(a) Is the item stock in trade?
(b) Is the item the business premises or
part of the business premises (the
premises test)?
(c’) Is the item used for carrying on the
business (the business use test)?
An item is plant if the answer is ‘No’
to the first two questions and ‘Yes’ to
the last question.
The above approach is very broad and
53
26.
27.
a)
scopes in even ‘spectrum cost’ as
without that mobile operator will not
be able to carry on its business.
(2) Mobile phone operating companies are
to pay a upfront significant amount of
fees for license renewal to the
Government in three years for a fifteen
years tenure. It is a basic investment
for this industry like machinery and
plant. Hence ‘fees for license renewal’
paid by any Mobile phone operating
company should be brought under the
purview of incentive through inclusion
of the same to the above definition of
plant.
Provision of merger or demerger should be included: (should be more specific for asking the change)
There is no specific provision
Above such provision of merger or
Merger and demerger has become a
available in current Income Tax
demerger should be included in the
common scenario in the country under
Ordinance 1984 for tax implication
Income Tax Ordinance 1984.
the same group of companies to create
in the case of transfer of assets on
more business prospect. But there is no
merger or demerger under the same
specific provision available in the
group of companies.
current Income Tax ordinance to
address the relevant tax implications.
Fiscal year versus tax year
difficulties
Fiscal year starts from the 1st July
and ends on 30th June after passing
Finance Act in the Parliament and
come into effect i.e. from 1st July.
But tax returns need to submit by
15th of July of those assesses
whose accounting year end on
December.
Changes in the Finance Act
irrespective of Corporate/
Individual tax should be
declared/ confirmed in the
current fiscal year for the next
year.
Fiscal year starts from 1st July
and ends on 30th June. Finance
Bill passes in the Parliament on
29/30th June of every year and
Finance Act become available in
the 2nd week of July. Moreover,
Circulars (Paripatra) publishes in
the last week of July or in the
August. But tax return needs to
submit by 15th of July.
Example:
Fiscal Year 2012-2013 shall
confirm the tax changes for the
assessment year 2013-2014 not
an assesses can not submit their tax
for the assessment year 2012- 
returns
by 15th July in absence of
2013.
updated tax laws and their
interpretations.

if tax increases in the fiscal policy,
there is possibility of giving less
advance tax.

if tax decreases in the fiscal policy
and offers incentives/exemptions,
assesses will not be able to get return
of excess payment.
b)
Credit of Tax Deducted at
Source U/S 62:
The Tax authority avoid giving
This practice to the assessee as
54
credit of Tax deducted at
source at import level
(AIT)with a remark in IT 30
to the effect that "Tax credit
will be given on receipt of
evidence to the effect that
tax has been deposited
under the proper head of
account of the Government".
c)
Investment of Provident
Fund, Gratuity and Pension
Fund Money
Due to investment
restrictions imposed by the
Government, these funds
cannot be invested as per the
provision of the Finance Act.
d)
We strongly suggest that the
provisions of the law and rules
should be made to the effect
that in respect of Import
Business, tax credit would be
allowed based on proof of
deposit of Tax with Custom
House branch of Sonali Bank
Limited and on production of
certificate u/s-58 should be
considered as a proof of
deduction at source during the
assessment.
We suggest that investment of
such funds in the fixed deposits
in Banks or Non Banking Financial
Institutes.
184D. Reward to officers and
employees for collection and
detection of evasion of taxes.
Rewards for Tax Officials for
their performance in
collection of taxes and
detection of tax evasion or
furnishing information
NBR may reward its officials but
leading to detection of tax
there should not be any
evasion;
provision of cash reward for
tax officials at a certain
Rewards to Tax officials for
percentage against collection
collecting of revenue in
excess of the revenue target. of tax in access of returns.
a means of harassment;
therefore it will reduce the
harassment of obtaining the tax
credit.
It is rational to invest the money
of Provident Fund, Gratuity and
Pension Fund in Banks and
Financial Institutions and to get
profit from there. It will increase
the funds so that the employees
will be more benefited.
Any reward/incentive in certain
percentage against collection of
tax in access of returns may be
a means of harassment.
Therefore this provisions need
to be changed for obvious
reason.
28. Advance Income Tax Recovery: Presently we are forced to pay Advance Income tax at
Customs point itself @ 5% of Assessed value of consignment (Earlier 3%). This 5% Advance
Income tax is minimum tax in case of traded items which converts into more than 15% net
taxable profit. This presumptive taxation system needs to be revisited and it needs to be
brought at par with manufacturing activity where taxable loss is accepted.
55
29. Income tax for individuals: The value of standard deduction should be increased due to
increase in prices of all essential commodities.
M.A. Matin
Executive Director
Annexure-C
FICCI’s Proposals/Suggestions on
Value Added Tax for the 2012-13 National Budget
MAJOR ISSUES
Sl.
No.
1.
Existing situation
Proposed VAT Act 2011
The government
introduced VAT as a
substitute of Excise and
Sales Tax in 1991 at
manufacturing and
import stage and
gradually in wholesale
and retail stage. Over the
period the net of VAT has
been expanded up to
retail level through SRO,
GO and other special
orders without necessary
reconstruction of Act and
Rules. Consequently the
VAT laws have turned
into bottleneck for
taxpayers.
Understanding the
gravity of the situation,
the government, in
collaboration with taxing
agencies, has redrafted
the VAT laws both in
Bangla and English
through drafted VAT Act
2012.
Proposal/Suggestion
We recommend the
implementation of proposed
VAT Act in consultation with
business community and
professionals within the
earliest possible time.
56
Justification
The proposed Act has addressed lots of
complicated aspect of the existing law
and in our observation, is a milestone.
Drafting the law in English alongside
Bangla is an investor friendly step.
2.
3.
VAT deducted at source
In the existing law, VAT
deduction at source is
applicable for 35 services
(General Order-9).
Regardless of VAT 11
challan, VAT is to be
deducted at source from
17 services at truncated
rate.
Price declaration
In the existing law,
manufacturers and
traders are required to
declare prices in form
VAT-1, 1Kha, 1Ga.





4.
Price declaration is not
required if the product price
is unchanged and the
percentage of value
addition change is less than
5%. But the VAT officials
do not allow credit without
price declaration even
though the change in price
is below 5%.
The officials take long time
to approve price declaration
if value addition is low.
The officials pressurize to
disclose product
formulation which is
regarded as confidential
business information.
The officials do not allow
price declaration
accounting for actual
wastage which may differ
from product to product.
The officials ask for all
B/E, challan, statements
etc. which may bulk up to
hundreds of pages and in
reality, are very difficult to
provide.
We propose that whether the VAT
base is truncated or not, if VAT 11
challan is provided there should be
no deduction at source or the
service provider is to receive credit
on the VAT deducted.
The service providers of these 17
services have to pay VAT twice although
they provide VAT 11 challan. They
should be allowed to take credit of the
VAT deducted from them.
Both service provider and
receiver should be liable for
the authenticity of the VAT
11 challan.
We recommend that




The law stating that ‘price
declaration is not required
if the product price is
unchanged and the
percentage of value
addition change is less
than 5%’ be duly
implemented.
Irrespective of percentage,
price declaration be
approved at actual value
addition.
For necessary verification,
price declaration be
approved upon explanation
of materials during the
hearing.
Price declaration be
approved accounting for
actual wastage.
Instead of submitting all
B/E, challan etc., price of
all materials be listed in
one sheet.
Input tax credit (VAT rebate)
As per section 9 read with We recommend that if the
Rule 19 of the VAT law,
VAT credit is genuine and
there are numerous
authentic, irrespective of the
means and measures,
nature of purchase, it should
which empower the
be allowed.
authority to disallow VAT
credits on input tax,
Clarification or directives are
57
These will ensure compliance of law
without unwanted hassle of taxpayers.
As the VAT credit is not allowed, the
same is transferred to the costs and
therefore the price of the goods or
services is higher and the ultimate
consumer is the sufferer.
It will strengthen the overall VAT
related to the supply of
any particular taxable
goods and services.
Examples of such
disallowances are:

-Repairing of furniture,
air conditioner, fan,
lighting equipment &
generator etc.;

-Travel, entertainment,
staff welfare and
developments activities;


5.
6.
7.
required so that Input VAT of
equipments, spares, services
which is used/consumed for
construction,
renovation,
repair and BMRE of BTSs are
not construed as Structure or
Establishment with reference
to Section 9.
operating structure and the tax payer
will get relief from unjust tax hit.
This type of clarification or directives
will mitigate the misunderstanding
between service renderer and VAT
authority and ensure the establishment
of true sense of VAT management.
There is ambiguity as to
worthiness of claiming
Input VAT rebate for
payment of VAT on
purchase of equipments,
spares, services which are
used/ consumed for
construction, renovation,
repair and BMRE of
Structure or
Establishment.
Rate of VAT
VAT payable rate is 15%
We propose the rate should VAT by nature is regressive, poor pay
be within 10%.
VAT more than the rich as a percentage
of their income. Therefore, a reduction
in rate will be helpful for the elimination
of poverty.
Withdrawal of supplementary duty on locally manufactured paint:
Supplementary Duty is a
We suggest that
Due to the imposition of supplementary
Supplementary
Duty
on
tax which is levied on
duty the local paint manufacturing
paints
at
the
manufacturing
products or services
industry is facing an adverse situation.
stage should be withdrawn
which are luxurious and
Paint industry plays a vital role in
socially undesirable.
infrastructure development of the
Currently 5%
country providing different mixture of
Supplementary Duty levypaints and saving buildings from
able at production stage
corrosion and increasing the
for locally manufactured
functionality of infrastructures.
paint increases the cost
of paint.
Market returns
Many companies like We, therefore, propose that, Food & beverages companies have a
58
food
&
beverages
companies are required
to take back the unsold
products from the market
due
to
date
expiry/damages of the
sold products. However,
a credit note is allowed
only if the returns are
made within 90 days of
invoicing subject to those
are not made on account
of
quality
defects.
Moreover,
how
this
market return products
should be disposed of is
not defined in the law.
8.
9.
10.
Credit note should be
allowed for all market
returns irrespective of time
passed.
regular flow of market returns and often
companies are required to dispose of
the same to maintain the freshness and
hygiene of the products. Since these
products are not allowed to be taken
back under credit notes, companies
have to bear the incidence based on
output tax rates. Consequently, it incurs
additional cost for the company.
As the market return products entail to
suffer loss e.g. “Negative Value
Addition” so it is not rational to pay VAT
on such goods. The time limit for
allowing such credit note should also be
enlarged because, in practice, the
products life may not become
expired/dented within such ninety days
period.
Allowance of input VAT on destroyed goods
The food industry is
We, therefore, recommend This will enable the company to reduce
particularly conscious
that,
VAT
on
goods the cost of the company thereby
about the shelf life and
withdrawn
from
the allowing the consumers a reduced price.
quality/edibility of its
market/own warehouses for
products and on a regular destruction be allowed to be
basis withdrawals are
set-off.
made from the market or
from stocks lying in own
warehouses of near
expiry/expired products
so that they do not pass
on to the consumers.
Such products are then
subsequently destroyed.
Currently input VAT on
such destroyed finished
goods is not allowed.
Common VAT software to be developed by NBR -2011-2012
The rule is considered to We suggest that the rule be
Use of common VAT software shall both
be a very good initiative implemented as soon as
diminish room for human error,
but the authorities are possible.
facilitate calculation and record keeping
reluctant towards its
as well as reduce harassment for
implementation.
assesses.
VAT Audit/ AG Audit:
There are various
1. Provision is needed to
To avoid unnecessary harassment and
authorities/departments have audit by one
protect the interest of business
conducting audit,
authority/department in a
community for the interest of the
inspection on the books
year and by another
nation.
59
of accounts and records
of same year.
11.
12.
authority/department in
alternate year.
2. A clear guide line from VAT
perspective to be developed
for AG audit.
Part adjustment of input VAT
We recommend that, the relevant
Currently, only 60% of
provision be withdrawn and 100%
input VAT on expenses
of input VAT on such expenditures
like telephone, fax,
be allowed as VAT rebate.
internet, legal advisor
etc. and 80% on
insurance, gas &
electricity is allowed as
rebate against the Sales
VAT liability.
[Ref.: Rule-19 of VAT
Rules 1991]
Supplementary Duty and Regulatory Duty on SIM Card:
SIM Card is the key organ Treating SIM card as nonof the telecommunication luxury item, we propose that
industry. Supplementary the Government should
Duty (SD) has been withdraw the SD and RD on
imposed @ 20% on SIM SIM card for the sake of
cards at the import stage. smooth expansion of the
Moreover,
regulatory telecommunication industry
duty (RD) has been and better interest of the
imposed at 5% on the people and Government.
same. The imposition of
SD and RD has increased
the cost of SIM card
which
reduced
the
expansion
of
telecommunication
industry in Bangladesh. It
is notable that the
expansion
of
telecommunication
industry is vital for the
development
of
Bangladesh.
These expenses are incurred wholly and
necessarily for business purposes and
hence part adjustment is unreasonable.
The withdrawal of the SD and RD on SIM
card by the Government will reduce the
current cost of SIM card. Consequently,
it would be possible for the mobile
companies to offer SIM card at the least
price which will enhance the subscriber
base.
If the Government withdraws the duty
on SIM card, the subscribers will get the
service at lower cost which will ensure
more use of telecommunication services
and Government will receive more tax
and VAT on increased revenues.
OTHER ISSUES
Sl.
No.
1.
Existing situation
Proposal/Suggestion
Justification
VAT on commercial
floor/space rent 9% payable
by tenant.
Since this VAT is not rebateable, withdrawal will reduce
cost of business.
2.
Low price unit packs of toilet
soaps, synthetic detergent
We therefore proposed that VAT
on commercial rent should be
reduced from 9% to 1.5%
because this has ultimately
increased cost of doing business.
Low price unit packs of toilet
soaps, synthetic detergent
powders, shampoos, skin
60
In order to give access to high
quality products like toilet
soaps, synthetic detergent
3.
4.
5.
6.
powders, shampoos, skin
cream/lotion and toothpaste
are not exempted from VAT
and Supplementary Duty
whereas VAT is exempted
upto Taka 80/- (on local
production) on plastic and
rubber Hawaii Chappal and
plastic footwear falling under
HS Code No. 6402.20.00
H.S. Code No. Items
3401.11.00 for Toilet Soaps,
3402.90.10 for Synthetic
Detergent Powders,
3305.10.00 for
Shampoos, 3304.99.00 for
Skin Cream & Lotion,
3306.10.00 for Tooth paste
Tk. 605.52/= is payable as
VAT & SD on supply of
RUIM/SIM on the Tariff value
of Tk. 1,095.97/=
creams/lotions and toothpaste
having retail selling price of
Taka 10/- or below should be
exempted from VAT and
Supplementary Duty on local
production.
powders,
shampoos,
skin
cream/lotion and Toothpaste at
affordable prices and to
improve the health and hygiene
standards of low income
groups, as well as to develop
marketing of such products in
low price unit packs, VAT and
Supplementary
should
be
exempted. With the expansion
of the market, it is expected
that the Government revenue
collection will also go up.
The tariff value of RUIM/SIM is
unrealistic and should be
eliminated completely which will
allow operators to pay VAT on
actual price of RUIM/SIM.
This elimination will accelerate
the expansion of Telecom
Industry and economy of the
country will be strengthen by
means of increasing amount of
VAT, Income Tax, Duties, FDI
etc.
VAT & SD on supply of
RUIM/SIM shall be payable at
the time of any of the
following activities, u/s 6 (3)
of VAT Act, 1991, which
occurs first , namely :
i) when the service is
rendered; ii) when an invoice
is issued; iii) when part or full
payment is received; iv) if
services rendered from
outside Bangladesh, at the
time when partial or full
payment is made.
Adjustment of VAT on
uncollected
revenue/cancellation of
invoice is very much
procedure oriented.
No explicit provision is
available regarding VAT
applicable on the own
consumption of services by
Explicit directives from NBR are
required allowing telecom
operators to pay SD & VAT after
activation of RUIM/SIM and not
at the time of supply from
warehouse.
This type of directives will establish
true sense of time for making payment
of SD & VAT.
Simplified provisions are
required to be inserted to make
the adjustment of VAT on
uncollected
revenue/cancellation of invoice
Directives/necessary
amendment should be made in
the VAT Acts so that applicable
VAT for services used/ consumed
Insertion of this type of
provision shall save the
operators from making VAT
payment on unrealized revenue
from own funds.
61
This type of directives/amendment
will mitigate the misunderstanding
between service renderer and VAT
authority and ensure the
the service renderer itself.
7.
8.
9.
10.
11.
VAT-11 should be submitted
to the local VAT office within
5(five) working days.
Implied recognition of own
VAT management system of
Telecom Operators by NBR
vide Nothi no. 2(1)
Mobile/VAT-Implementation:
Service and Excise/99/1237
dated 11.11.2002
by service renderer shall be
waived/exempted.
Waiver from this provision
should be granted in favor of
Telecom Operators
NBR should explicitly recognize
own VAT management system of
the telecom operators such as
transporting
Handsets/SIM/RUIM from
warehouse to Point of Sales
(POS), documentations,
reporting etc.
Provisions should be inserted so
that indemnification of rebate
claimant is ensured for any
misstatement made in VAT
challan by Service provider or
Seller of goods.
establishment of true sense of VAT
management.
Operators will get rid of being
defaulter with reference to this
unrealistic provision.
Operators will get rid of being
defaulter with reference to
existing unrealistic provisions.
There is no provision for
It will protect the interest of
indemnity in favor of service
service recipient from being
recipient against cancellation
penalized for the fault of service
of VAT rebate due to
provider.
mistakes in the VAT invoices
committed by service
provider or seller of goods.
No specific cell is available in Opening a cell in NBR for
This will ensure proper
NBR for providing prompt
providing prompt clarification on compliance with the provisions
clarification on any issue of
any issue of VAT law or
of VAT laws.
VAT law or operational
operational guidance from the
guidance from VAT point of
standpoint of VAT Law.
view.
Treatment of output VAT for Products Exempted from 15% VAT at Import Stage.
Reference: ব্যখ্যাপত্র নং ০৩/মুসক/২০১০ তারিখ্ঃ ১৬ আষাড়, ১৪১৭ ব্ঙ্গাব্দ/ ৩০ জুন, ২০১০ রিষ্টাব্দ।
As per above explanation, a
We would like to propose for
Under given situation, price
commercial importer adding adding an additional instruction
approval for items for which
value more or less than
after SL # 5 as a part of Form
there is ATV but no VAT @ 15%
13.33% is required to declare Mushak-1Kha as follows:
at import stage is contradictory
price, pay VAT @ 15% and to
as value addition of 13.33% has
maintain VAT Current
“In case of VAT exempted items
no further VAT implication
Account. As a result of these, at imported stage, VAT will be
whereas in case of value
we are also entitled to get
paid @ 15% on value addition as addition less than 13.33 will
credit of Input VAT duly paid mentioned in Column 5 of
result higher VAT implication if
at import stage both VAT
Mushak-1Kha instead of the VAT any one wants to sell those
@15% and applicable ATV.
imposable value in Column 9 or
products through price
There are some products
10”.
declaration.
which are not subject to 15%
VAT but only subject to
applicable ATV at import
stage. In selling those
products with value addition
of more or less than 13.33%
62
these are subject to Price
Declaration in Mushok 1 Kha.
12.
13.
As per requirement of price
declaration for Commercial
Importer and Trader
according to Mushak 1Kha,
VAT is to be charged @15%
on VAT Imposable Value i.e.
Cost of product plus value
addition. For VAT exempted
items at import stage, if value
addition is more or less than
13.33%, price approval is to
be taken by showing VAT
impossible value of cost of
purchase + value addition
whereas the importer will not
be entitled for credit of input
VAT as there is no input VAT.
VAT rebate through Treasury Challan in case of service received from outside Bangladesh
Generally VAT deduction at
Considering the above practical
As per section 9 of VAT Act
source and thereafter deposit situation, we propose that,
1991, this rebate should be
through Treasury Challan in
deduction and payment of
availed by the service receiver
Government exchequer is not applicable withholding VAT will
through simplified mechanism
allowed for rebate. On the
be ensured by remitting bank.
as VAT 11 by service renderer
other hand, in case of service The bank after deduction and
cannot be issued.
received from outside
payment of the VAT, will issue a
Bangladesh, VAT has to be
certificate to the payer
paid by the service receiver.
mentioning including others,
So there is no scope of
payer’s name, VAT registration
collecting Mushak-11 as
number and address which will
service receiver is liable to
be allowed for the payer of
pay VAT and for service
foreign remittance to be used as
Renderer Company it is not
instrument to take input VAT
possible to be registered in
rebate.
Bangladesh.
VAT payment by the manufacturer/importer on behalf of their distributors
Currently, as per prevailing
Necessary orders/amendments
If the manufacturer/importer
VAT Act, the distributors are
should be made so that the
are allowed to pay VAT
liable to pay VAT for
manufacturers/importers are
considering the distributors
distribution of products.
allowed to pay VAT considering
selling price (without any
the distributors selling price, so
requirement for printing of
Those who are to follow
that the distributors are not
price), the complex system of
credit method, it seems very required to maintain detailed
maintaining detailed books &
difficult for them to comply
books & records like big
records and issuing MUSAK
with all the VAT requirements manufacturers. This will also
11/11(KA) for every single sale
(e.g. price declaration,
result in timely collection of
like big manufacturers will not
63
14.
15.
16.
purchase book, sales book,
revenue from VAT.
perpetual current accounts
register etc.) due to their
inadequate logistics facilities.
Therefore, they are to suffer
a lot of undue harassments.
Transfer of materials for production
Currently, for transferring We propose that, necessary
materials for production from amendments be made so that
one factory to another materials
to
contract
factory, price declaration manufacturers or to other units
needs to be submitted.
of the same organization can be
transferred
for
production,
without any price declaration on
the basis of raw material transfer
Chalan which was practiced
earlier.
Accounting for the SME (Small and Medium Enterprise):
Under the present provision
We would therefore recommend
of the VAT law, all the
that detail record keeping may
business entity [vide section
be exempted and soften as the
8(4) & SRO issued thereupon case may be for the SME. In this
from time to time], are
regard, ECR or any other
required to be registered
electronic device may be viable.
with the VAT authority
regardless of their turnover.
On the other hand, Section
31 & Rule 21 entail that the
registered person must
maintain the books & records
(even if by a small business
entity like a conglomerate) as
prescribed thereto.
SME do not have the logistics
support as the conglomerate
have. But when a fully
compliant company has any
transaction with an SME who
is not compliant in that case
the compliant company is
sufferer.
Realization of unpaid or short paid VAT
Government can realize
Government should realize
unpaid or short paid VAT and unpaid or short paid VAT and
other duties for any period
others duties for maximum two
from the date on which the
years back.
said duty or VAT become
64
be required anymore and the
VAT implementation at
distributors level will be
smoother ensuring increased
Govt. revenue collection.
For transferring materials to
contract manufacturers or to
other units of the same
organization, price declaration
needs to be submitted showing
value addition (although there is
none).
This
unnecessarily
increases cost and hassle
without any value addition.
SME are not capable to
maintain all the required books
and records. In view of this, the
requirements of the maintaining
detail books and records may be
relaxed.


Books and record should
be maintained at most 4
years U/S-33.
It is not practical to keep
VAT documents for
17.
18.
19.
20.
payable. [Section – 55]
Trade discount
In case of trade discount any Time limitation should not be
registered person shall
imposed for trade discount. It
inform the concerned
should be based on the company
divisional officer and shall
business policy and Govt. should
publish a notice in the
not fix the percentage of
national daily specifying the
discount.
actual price and the price
after trade discount at which
goods shall be supplied and
duration for which trade
discount facilities shall be
available and the trade
discount shall not exceed
15% of the actual price and
shall be given only for
maximum 30 days during 12
months period. [Rule -3(6)]
VAT payment stage
VAT is paid when the goods
VAT should be paid at sales point
are dispatched from
instead of production stage.
warehouse to retail store.
[Section 6(2)]
When no tax can be assessed No tax should be charged before
with relevant decision and it
disposal of appeal procedure.
will be effective until disposal
of appeal filed u/s 42(1).
Claim of VAT rebate within 90 days time limit
The existing provision requires
claiming of rebates of input VAT
within 30 days of receipt of the (i.e.
entry in purchase register and
current account) goods or services
in factory.
21.
22.
We recommend that, relevant provision
should be modified to allow a
manufacturer to claim input VAT rebate
within three months from the date of
receipt of materials/services.
unlimited time.



Trade discount is given
for the demand of
customers. So there is
no specific time for that.
Amount
of
trade
discount depend on the
business policy of the
company.
Companies are loosing
VAT rebate for imposing
such conditions.
VAT is for ultimate customer, so
it should be paid after sales.
It is not logical to charge
advance VAT before disposal of
appeal.
Receipt of goods or services in factory
is not always practicable for a
manufacturer. There can be numerous
reasons for delays in receipt of VAT
challans both in case of imported
goods and for services.
Advance Trade VAT
The percentage of advance We recommend the decrease of The reduction in advance trade
trade VAT is set at 3%.
advance trade VAT be reduced to VAT will help importers to save
2%.
and eventually encourage them
to invest more.
Clarification regarding payee of SD in manufacturing stage
The Vat act does not clarify We request that the Act be more Confusion may often arise as to
well enough which party is specific in defining the payee for whether the “brand owner” or
liable
to
pay
the SD.
the “sub-contractor” should
Supplementary Duty at the
bear
the
SD
in
the
manufacturing stage.
manufacturing
stage.
Clarification of the Act shall
remove confusion.
65
23.
Reduction of VAT basis rate
The base rate of VAT is We propose that the base rate of With the decrease in VAT base
currently set to 15%
VAT be reduced to 12.5%
rate, the revenue from a single
item might be reduced but it
would encourage increased
sales which will in turn increase
VAT revenue through sales
volume.
Moreover,
our
neighboring country India has a
VAT rate of 12.5%.
24.
Extension of time-limit for depositing Withholding VAT:
25.
Simplification of VAT rebate on Electricity bills:
As per general order #
09/Mushak/201 dated 12
October 2011, at present the
time limit for depositing of
withhold VAT is 15 (fifteen)
working days. Considering
huge volume of transactions
and the activities to be
undertaken, 15 (fifteen)
working days time is
practically inadequate for the
deducting companies to
deposit withholding VAT.
Electricity consumption when
falls under the purview of
input item, the VAT
registered person becomes
eligible for VAT rebate on the
input. For the purpose of
taking rebate of input VAT,
the eligible VAT 11 or
equivalent instrument has to
be used where the name of
registered person, registered
address and VAT registration
number are to be mentioned.
But power supply authorities
issue electricity bills only to
the consumers which does
not include all the required
details.
Our proposal is that considering
the practicality withholding VAT
should be allowed to be
deposited with the VAT return.
We propose to simplify the
requirement for VAT rebate by
requiring only the name or VAT
registration number of the
claiming organization in the
electricity bill.
M.A. Matin
Executive Director
66
Taking the trend of business
into account, the rules and
regulations are required to be
made pragmatic so as to
facilitate both regulator and
assesses for smooth compliance
through avoiding redundancy.
Since electricity bill is an input
there should be a practicable
mechanism to avail input rebate
out of it.
Auditors Report
AUDITORS’ REPORT TO THE MEMBERS OF
FOREIGN INVESTORS’ CHAMBER OF COMMERCE AND INDUSTRY
We have audited the accompanying Balance Sheet of Foreign Investors’ Chamber of
Commerce & Industry (the “Chamber”) as of 30 June 2013 and related Income and Expenditure
Account and statement of Cash Flows for the year then ended together with the Notes 1 to 12 thereto.
The preparation of these Financial Statements is the responsibility of the Chamber's management. Our
responsibility is to express an independent opinion on these Financial Statements based on our audit.
We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA) and
Bangladesh Auditing Practice Statements (BAPS).Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the Financial Statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statements. An audit also includes assessing the accounting principles
used and significant estimates made by the management, as well as evaluating the overall Financial
Statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Financial Statements, prepared in accordance with the recognition and
measurement principles of International Accounting Standards (IAS) and International Financial
Reporting Standards (IFRS) as stated in note 2.1 presents fairly in all material aspects the state
of the Chambers’ affairs as of 30 June 2013 and of the results of its operations and its cash flow for
the year then ended and comply with the Companies Act, 1994 and other applicable laws and
regulations.
We also report that:
a) We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit and made due
verification thereof;
b) In our opinion, proper books of account as required by law have been kept by the
Chamber so far as it appeared from our examination of those books; and
c) The Chamber's Balance Sheet and Income & expenditure Account together with the
Notes 1 to 12 dealt with by the report are in agreement with the books of account.
Dhaka, 24 October 2013
Chartered Accountants
67
FOREIGN INVESTORS' CHAMBER OF COMMERCE & INDUSTRY
BALANCE SHEET AS AT 30 JUNE 2013
APPLICATION OF FUNDS
Note
Tangible fixed assets- at cost less accumulated
depreciation
2013
Taka
2012
Taka
3
18,253,856
18,623,563
4
6
5
7
297,850
411,083
601,000
8,258,700
9,568,634
921,083
369,000
4,465,392
5,755,475
8
Net Current Assets
TOTAL ASSETS
LONG TERM LIABILITIES
78,883
95,000
750,000
923,883
8,644,751
26,898,607
-
74,853
50,000
750,000
874,853
4,880,622
23,504,185
-
NET ASSETS
26,898,607
23,504,185
23,504,185
20,315,148
3,394,422
26,898,607
3,189,037
23,504,185
CURRENT ASSETS
Interest accrued on bank deposits
Advances and deposits
Other receivables
Cash and bank balances
CURRENT LIABILITIES
Accrued expenses
Advance annual subscription
Gratuity Provision
11c
SOURCE OF FUNDS
General Fund
Balance on 1 July
Surplus of income over Expenditure
transferred from Income and Expenditure Account
These Financial Statements should be read in conjunction with the annexed notes
President
Vice-President
Executive Director
AUDITORS' REPORT TO THE MEMBERS
See annexed report of date
Dhaka, 24 October 2013
Chartered Accountants
68
FOREIGN INVESTORS' CHAMBER OF COMMERCE & INDUSTRY
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2013
Note
INCOME
Membership subscriptions - General
Entrance fees
Fees for issuing certificate of origin
Interest on bank deposits- net of income tax
Advertisements income
Sale of Old Furniture
Sponsorship for 50 Years
Sponsorship received for Business Directory
Miscellaneous income
10
9
EXPENDITURE
Salaries, allowances, benefits and bonus
Office rent
Telephone bills
Electricity bills
Gas charges
Newspaper
Depreciation
Subscriptions
Audit fee
Postage
Printing & stationery
Photograph expenses
Conveyance
Entertainment expenses
Repairs & maintenance
Car expenses
Insurance premium on Car
Insurance premium on group insurance
Courier & E-mail charges
Website
Bank charges
Medical expenses/Assistance
Advertisment
Legal fee
Travel expenses
Service Charge
Partial provision for Gratuity Expense
Gratuity Paid to employee
Miscellaneous expenses
11
3
Surplus of income over Expenditure
transferred to General Fund
2013
Taka
2012
Taka
5,390,834
480,000
98,500
353,117
1,090,055
110,000
2,397,000
2,500,000
314,600
12,734,106
5,145,000
540,000
82,000
1,197,786
955,142
2,400,000
730,800
11,050,728
3,767,244
110,000
79,898
36,272
5,400
7,220
2,130,255
86,000
30,000
5,317
715,911
6,856
26,820
483,043
153,049
399,600
20,915
51,094
57,250
21,500
29,972
56,850
538,900
83,343
419,200
17,775
9,339,684
2,530,200
1,320,000
81,878
37,987
5,400
5,892
385,998
90,000
30,000
188
984,657
12,346
24,000
326,524
73,302
351,600
20,915
52,044
51,974
2,000
22,610
92,560
11,500
40,000
430,265
110,000
750,000
17,850
7,861,690
3,394,422
3,189,037
These Financial Statements should be read in conjunction with the annexed notes
President
Vice President
Dhaka, 24 October 2013
Executive Director
Chartered Accountants
69
FOREIGN INVESTORS' CHAMBER OF COMMERCE & INDUSTRY
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013
Note
OPERATING ACTIVITIES
Excess of Income over Expenditure for the year
Paid to Employee against gratuity
Provision for Gratuity
Depreciation
Operating income before changes in Working Capital
CHANGES IN WORKING CAPITAL
Interest accrued on bank deposits
Other receivables
Advances and deposits
Accrued expenses
Advance annual subscription
2012
Taka
3,394,422
3,189,037
(419,200)
419,200
3
4
5
6
8
Net cash inflow from operating activities
INVESTING ACTIVITIES
Purchase of fixed assets
2013
Taka
3
Net cash outflow from investing activities
FINANCING ACTIVITIES
2,130,255
385,998
5,524,677
4,325,036
(297,850)
564,427
(232,000)
56,000
510,000
4,030
7
(7,050)
27,278
45,000
20,000
29,180
660,655
5,553,857
4,985,690
(1,760,550)
(18,443,000)
(1,760,550)
(18,443,000)
-
Net cash outflow for the year
Cash and Bank Balances on '1 July
Cash and Bank Balances on 30 June
750,000
-
3,793,307
(13,457,310)
4,465,392
17,922,702
8,258,700
4,465,392
This statement should be read in conjunction with the annexed notes
President
Vice-President
70
Executive Director
FOREIGN INVESTORS' CHAMBER OF COMMERCE AND INDUSTRY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013
1 INCORPORATION AND NATURE OF BUSINESS
Foreign Investors' Chamber of Commerce and Industry ("FICCI" or "Chamber") was incorporated on
1 July 1963 under the name and style of " The Agrabad Chamber of Commerce and Industry" under
the Companies Act, 1913 and subsequently on 9 June 1987, this was renamed as " Foreign Investors'
Chamber of Commerce and Industry". Its principal activities throughout the year were to promote and
protect the trade, commerce, industry and manufacturers of Bangladesh and to protect the interest of
foreign nationals/entities carrying on business in Bangladesh and to render to the Government and or
other authorities such assistance, information or advice as may enable them to promote commerce,
trade and industry.
2
SIGNIFICANT ACCOUNTING POLICIES
2 Accounting Basis
These Financial Statements have been prepared under the historical cost convention and
following the recognition and measurement principles outlined in the International Accounting
Standards (IAS) and International Financial Reporting Standards (IFRS). Except employee
reirement benefit plan which are recognized on cash basis.Certain disclosures required by IASs
and IFRSs are not provided in given as management consider
2 Tangible Fixed Assets
Fixed assets are stated at cost less accumulated depreciation.
2 Depreciation
Depreciation is charged on straight line method at the rate mentioned against each class of assets shown
under note 3 to these Financial Statements and full year's depreciation is charged on assets acquired in
the first half of the accounting year while depreciation at 50% of annual rate is charged on additions and
at 50% on disposals made in the second-half of the year.
2 Gratuity
Gratuity for the employees of the Chamber is accounted for on cash payments basis and no accrual has
been made.
3 Tax Provision
No provision for Income Tax has been made, As the Chamber is considered to be exempted from the
payment of Tax.
3 General
Figures appearing in these Financial Statements have been rounded off to the nearest Taka.
71
72
Name of Assets
Balance on
1st July,12
Furniture
749,694
Equipment
585,999
A/C
394,850
Computer
218,350
Fax
52,400
Renovation
442,707
Television
31,500
Vehicle
1,660,800
Crockeries
23,100
Flat
18,400,000
2013 22,559,400
2012 4,116,400
1,760,550
18,443,000
1,111,350
40,000
38,500
477,500
93,200
COST
Addition
Balance at Rate
30 June,13 of %
197,459
1,029,735 10
266,035
413,164 10
258,550
136,300 10
75,000
181,850 10
38,900
13,500 10
442,707
1,111,350 10
31,500
40,000 10
1,660,800 20
23,100
10
18,400,000 10
1,333,251 22,986,699
- 22,559,400
Disposal
3 TANGIBLE FIXED ASSETS- At cost less accumulated depreciation
An Independent Correspondent Firm to Deloitte Touche Tohmatsu
DEPRECIATION
Written
Balance at
Charge
Disposal
Balance at
Down
1st July,12
30 June,13
Value 2013
630,316
102,974
197,458
535,832
493,904
493,405
40,906
266,034
268,278
144,886
306,220
13,630
258,550
61,300
75,000
150,830
16,260
75,000
92,090
89,760
43,625
1,350
38,900
6,075
7,425
442,707
111,135
442,707
111,135
1,000,215
31,500
4,000
31,500
4,000
36000
1,660,800
1,660,800
23,100
23,100
153333
1,840,000
1,993,333 16,406,667
3,935,837
2,130,255
1,333,249
4,732,843 18,253,857
3549839
4157536
3,935,837 18,623,563
Hoda Vasi
Chowdhury & Co.
2013
Taka
2012
Taka
4 INTEREST ACCRUED ON DEPOSITS
Gross interest accrued on fixed deposits
Less : 10% income tax thereon
330,944
33,094
297,850
5 OTHER RECEIVABLE
Accrued income from advertisement
Accrued Annual Subscription
-
501,000
100,000
601,000
369,000
369,000
393,583
393,583
15,500
2,000
411,083
110,000
393,583
503,583
400,000
15,500
2,000
921,083
668
569
4,000,000
920,285
3,337,747
8,258,700
4,464,823
4,465,392
30,000
9,103
4,380
30,000
5,400
78,883
30,000
7,408
7,445
30,000
74,853
6 ADVANCES AND DEPOSITS
Advances
Office Rent - Mrs. Rummana Perveen
Tax deducted at source*
Advance paid Kamranga Designs Ltd. For office renovation
Security deposit with T & T
Security deposit with Fastnet Services for E-mail
7 CASH AND BANK BALANCES
Cash in hand
Cash at banks
On fixed deposit accounts with
Standard Chartered Bank, Dhaka:
On SND & Current account with
Standard Chartered Bank, Dhaka:
8 ACCRUED EXPENSES
Audit fee
Telephone bill
Electricity bill
Subscription to ICC
Gas bill
73
9
2013
Taka
2012
Taka
125,000
30,600
16,000
72,000
71,000
314,600
125,000
100,000
43,800
462,000
730,800
2,00,000
2,00,000
1,00,000
1,000,000
1,000,000
2,500,000
1,000,000
100,000
200,000
1,000,000
100,000
2,400,000
MISELLENIOUS INCOME
Unilever (BD) Ltd. for Annual Report
Grameen Phone for FICCI directory
Income from lunch meeting
Sale of Business Directory
Singer Bangladesh Ltd
LSI Industries ltd. (projection screen)
* This represents withholding income for deducted at source by the Banks/Financial Institutions at
the time of crediting interest. The Chamber expects that eventually this amount will be recoverable
and hence included in advances and deposits.
10 SPONSORSHIP FOR BUSINESS DIRECTORY
British American Tobbaco Co. Ltd
Standerd chartered Bank
chevron Bangladesh
Robi Axiata Ltd
Airtel Bangladesh Ltd
Lungla Sylhet Tea Co.
Surmah Valley Tea Co.
Chittagong Warehouse Ltd
Pacific Bangladesh Telecom Ltd
Pacific Bangladesh Telecom Ltd
11 SALARIES, ALLOWANCES, BENEFITS AND BONUS
2013
a.
b.
Number of
employees
Employees engaged for the whole year drawing remuneration:
(I)
Above Tk 36,000 per annum
7
(ii)
Below Tk 36,000 per annum
7
Employees engaged for a part of the year drawing remuneration:
(i)
Above Tk 3,000 per month
(ii)
Below Tk 3,000 per month
7
74
Taka
2012
Number of
employees
Taka
3,767,244
3,767,244
3,767,244
5
5
2,530,200
2,530,200
5
2,530,200
-
c.
Gratuity Provision
Employees are entitled for gratuity provision at defined rates, upon termination of the employment
with the chember. A partial provision of tk. 750,000 has been made during the current year on
account of cumulative shortfall in gratuity provision from prior years. Management has decided to
cover the remaning shortfall within the next two to three years after performing a detailed
calculation of its gratuity obligation.
12 TRAVEL EXPENSES
This represents the cost of air ticket and accomodation for overseas trip of the FICCI Executive Director
President
Vice-President
75
Executive Director