logging in or signing up Corporate View of Budget2003 Raffaele Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 74 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: March 05, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Seminar & Discussion on NATIONAL BUDGET 2003-04 from a corporate perspective Jointly arranged by: Bangladesh MBA Association IBA Alumni Association, DU MBA Club Limited: Seminar & Discussion on NATIONAL BUDGET 2003-04 from a corporate perspective Jointly arranged by: Bangladesh MBA Association IBA Alumni Association, DU MBA Club Limited June 24, 2003BUDGET FY 2003-04 LOOKING THROUGH CORPORATE SPECTACLES Presentation by: AIMS of Bangladesh : BUDGET FY 2003-04 LOOKING THROUGH CORPORATE SPECTACLES Presentation by: AIMS of Bangladesh Assalamualaikum & WelcomeSlide3: SNAPSHOT THE SUPPLIMENTARY SAGA : THE SUPPLIMENTARY SAGA Fruitless annual ritual ADP slashes Non–dev. revenue expenditure nudges up Borrowing increases Hemorrhage of SOEs, wastage, corruption continues repetitively. No deliberation in Parliamentary Party WITH NO COMPLEMENTARY ACCOUNTABILITYTHE GOOD: Emphasis on expanding tax net, improving collection and efficiency of NBR Increased allocation for transport, communication and education THE GOODTHE GOOD: No tax on pension of Non Resident Bangladeshis THE GOOD Increased allowance for old age pension Helping hand to agriculture Allocation for Micro-Credit.THE GOOD: Tax on RMG and Textiles slashed to 10% and 20% – acknowledging corporate threshold of remaining profitable ? THE GOOD SD restructured to 5 slabs from 31 with range of 15% to 75%. CD restructured to 3 slabs within 7.5% to 30%. – proclaimed rationalizationTHE BAD: Increase in non-development revenue expenditure – unchecked spending spree Block allocation for unapproved projects in ADP. THE BAD Allocation for policing increased but no firm commitment for ensuring conducive business and investment climate. Slide9: Bloated ADP – who’d care for accountability and quality ? THE BAD High aid dependence with 51% external financing of ADP – self reliance gone with the wind ?Slide10: Income tax on non-listed companies raised to 37.5% while those of listed companies kept unchanged at 30% - incentive or coercion ? THE BAD Increased borrowing at high rates - distorting market ? THE BAD: Listed companies failing to declare at least 10% dividend are to pay tax at 37.5% - obstacle to corporate growth and expansion. Infringement on shareholders’ right ? THE BADSlide12: Tax on banks, insurance companies and financial institutions raised to 45%. THE BAD Dividend distribution tax on top of excess profit tax – horns of dilemma for the banking and capital market. -penalty for efficiency ?Slide13: Argument has been put up that the high taxation on banks and FIs are to force lower interest rate, government continues to borrow at high rates. THE BAD MONEY MARKET DISTORTIONS Effective rate on one year T-Bills is 10%. Slide14: Incidence of prohibitive stamp duty on conveyance of receivables and possible income tax on SPV at entity level retarding resource mobilization by FIs and development of a vibrant debt securities market. THE BADSlide15: Now here, not there Lost loves THE UGLY Chains BrokenSlide16: Raising tax on essentials such as salt, sugar, spices, fruits. – more pangs for the precarious middle class THE UGLY Tax exemption for individuals raised to Tk. 90,000 from Tk. 75,000. acknowledgement of wrong done partial rectificationSlide17: THE UGLY No tax at source on dividend income but corporations to pay dividend distribution tax at 10% ---THE GRAND DECEPTION ! – more minting by government, less in investors’ pocketSlide18: No question asked if undisclosed income is invested in the capital market and locked in for two years. THE UGLY Bad money to drive good money out? Inviting bull in a China Shop? --acknowledgement that capital market is not attractive to hard earned honest savings. Slide19: Protecting the inefficient sugar industry.- contrary to the privatization promise THE UGLY No definitive road map for privatization and no reflection of the proceed from proposed divestment of SOEs in the budget. – Silence and ambiguity prevails. Shut down is no panaceaSlide20: No reduction in POL price at consumer level despite reduction in SD from 30% & 20% to 25% & 15%, - inefficient and unfair government monopoly hibernating spiral inflation effect. THE UGLY Limit of remittable technical fee drastically cut Slide21: Self – employed businessmen and professional to pay minimum tax of Tk. 12,000 while company directors to pay Tk. 30,000 minimum under self assessment scheme – Anti corporatization bias. THE UGLY Capital Gains Tax vs Investment of Undeclared Income – how to turn white money black Slide22: Does not augur well with good governance and separation of judiciary THE UGLY Only Tk. 10 million increased allocation for judiciary. Revenue budget of Supreme Court reduced by 11.76% and of law ministry increased by only 0.79%.POINTS TO PONDER: POINTS TO PONDER Is the budget pro-corporate Bangladesh? Where is the ‘Engine of Growth’? Quantum shift from quality to quantity? Document of self-reliance? Silence on governance?THANK YOU for bearing with us : THANK YOU for bearing with us for more information please visit: www.aims-bangladesh.com You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Corporate View of Budget2003 Raffaele Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 74 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: March 05, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Seminar & Discussion on NATIONAL BUDGET 2003-04 from a corporate perspective Jointly arranged by: Bangladesh MBA Association IBA Alumni Association, DU MBA Club Limited: Seminar & Discussion on NATIONAL BUDGET 2003-04 from a corporate perspective Jointly arranged by: Bangladesh MBA Association IBA Alumni Association, DU MBA Club Limited June 24, 2003BUDGET FY 2003-04 LOOKING THROUGH CORPORATE SPECTACLES Presentation by: AIMS of Bangladesh : BUDGET FY 2003-04 LOOKING THROUGH CORPORATE SPECTACLES Presentation by: AIMS of Bangladesh Assalamualaikum & WelcomeSlide3: SNAPSHOT THE SUPPLIMENTARY SAGA : THE SUPPLIMENTARY SAGA Fruitless annual ritual ADP slashes Non–dev. revenue expenditure nudges up Borrowing increases Hemorrhage of SOEs, wastage, corruption continues repetitively. No deliberation in Parliamentary Party WITH NO COMPLEMENTARY ACCOUNTABILITYTHE GOOD: Emphasis on expanding tax net, improving collection and efficiency of NBR Increased allocation for transport, communication and education THE GOODTHE GOOD: No tax on pension of Non Resident Bangladeshis THE GOOD Increased allowance for old age pension Helping hand to agriculture Allocation for Micro-Credit.THE GOOD: Tax on RMG and Textiles slashed to 10% and 20% – acknowledging corporate threshold of remaining profitable ? THE GOOD SD restructured to 5 slabs from 31 with range of 15% to 75%. CD restructured to 3 slabs within 7.5% to 30%. – proclaimed rationalizationTHE BAD: Increase in non-development revenue expenditure – unchecked spending spree Block allocation for unapproved projects in ADP. THE BAD Allocation for policing increased but no firm commitment for ensuring conducive business and investment climate. Slide9: Bloated ADP – who’d care for accountability and quality ? THE BAD High aid dependence with 51% external financing of ADP – self reliance gone with the wind ?Slide10: Income tax on non-listed companies raised to 37.5% while those of listed companies kept unchanged at 30% - incentive or coercion ? THE BAD Increased borrowing at high rates - distorting market ? THE BAD: Listed companies failing to declare at least 10% dividend are to pay tax at 37.5% - obstacle to corporate growth and expansion. Infringement on shareholders’ right ? THE BADSlide12: Tax on banks, insurance companies and financial institutions raised to 45%. THE BAD Dividend distribution tax on top of excess profit tax – horns of dilemma for the banking and capital market. -penalty for efficiency ?Slide13: Argument has been put up that the high taxation on banks and FIs are to force lower interest rate, government continues to borrow at high rates. THE BAD MONEY MARKET DISTORTIONS Effective rate on one year T-Bills is 10%. Slide14: Incidence of prohibitive stamp duty on conveyance of receivables and possible income tax on SPV at entity level retarding resource mobilization by FIs and development of a vibrant debt securities market. THE BADSlide15: Now here, not there Lost loves THE UGLY Chains BrokenSlide16: Raising tax on essentials such as salt, sugar, spices, fruits. – more pangs for the precarious middle class THE UGLY Tax exemption for individuals raised to Tk. 90,000 from Tk. 75,000. acknowledgement of wrong done partial rectificationSlide17: THE UGLY No tax at source on dividend income but corporations to pay dividend distribution tax at 10% ---THE GRAND DECEPTION ! – more minting by government, less in investors’ pocketSlide18: No question asked if undisclosed income is invested in the capital market and locked in for two years. THE UGLY Bad money to drive good money out? Inviting bull in a China Shop? --acknowledgement that capital market is not attractive to hard earned honest savings. Slide19: Protecting the inefficient sugar industry.- contrary to the privatization promise THE UGLY No definitive road map for privatization and no reflection of the proceed from proposed divestment of SOEs in the budget. – Silence and ambiguity prevails. Shut down is no panaceaSlide20: No reduction in POL price at consumer level despite reduction in SD from 30% & 20% to 25% & 15%, - inefficient and unfair government monopoly hibernating spiral inflation effect. THE UGLY Limit of remittable technical fee drastically cut Slide21: Self – employed businessmen and professional to pay minimum tax of Tk. 12,000 while company directors to pay Tk. 30,000 minimum under self assessment scheme – Anti corporatization bias. THE UGLY Capital Gains Tax vs Investment of Undeclared Income – how to turn white money black Slide22: Does not augur well with good governance and separation of judiciary THE UGLY Only Tk. 10 million increased allocation for judiciary. Revenue budget of Supreme Court reduced by 11.76% and of law ministry increased by only 0.79%.POINTS TO PONDER: POINTS TO PONDER Is the budget pro-corporate Bangladesh? Where is the ‘Engine of Growth’? Quantum shift from quality to quantity? Document of self-reliance? Silence on governance?THANK YOU for bearing with us : THANK YOU for bearing with us for more information please visit: www.aims-bangladesh.com