G7 reaches historic deal to reform global tax system



Business Desk, Barta24.com
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The Group of Seven (G7) finance ministers have reached "a historic agreement" to reform the global tax system to make it fit for the global digital age, British Chancellor of the Exchequer Rishi Sunak said on Saturday.

Sunak made the remarks after hosting the first in-person meeting of G7 finance ministers in London since the start of the coronavirus pandemic in the country.

"I am delighted to announce that the G7 finance ministers today, after years of discussions, have reached a historic agreement to reform the global tax system to make it fit for the global digital age and crucially, to make sure that it's fair so that the right companies pay the right tax in the right places," Sunak said in a video clip on his twitter.

The G7 also agreed to the principle of a global minimum corporation tax on large firms of at least 15 percent operated on a country-by-country basis, creating a more level playing field for British firms and cracking down on tax avoidance, according to Sunak.

"We commit to reaching an equitable solution on the allocation of taxing rights, with market countries awarded taxing rights on at least 20 percent of profit exceeding a 10 percent margin for the largest and most profitable multinational enterprises," said a communique released after the meeting.

The communique said the G7 will provide for appropriate coordination between the application of the new international tax rules and the removal of all digital services taxes.

Digital service tax refers to a move taken by countries including France, Britain and Spain to make big internet companies pay their fair share of taxes in countries where they make their sales, but the United States believes it unfairly targets U.S.-based technology companies.

"And that's a huge prize for British taxpayers. This is a very proud moment and I want to thank my G7 finance minister colleagues for their collective leadership and for their willingness to work together to seize this moment to strike a deal of historic significance that finally brings our global tax system into the 21st century," Sunak said.

U.S. Treasury Secretary Janet Yellen tweeted that global minimum tax would end the race-to-the-bottom in corporate taxation, and help the global economy thrive, by leveling the playing field for businesses and encouraging countries to compete on positive bases, such as educating and training their work forces and investing in research and development and infrastructure.

Meanwhile, Irish Finance Minister Paschal Donohoe was also in London for the G7 finance minister's meeting as Eurogroup President. He previously told Sky News that Ireland, whose corporate tax rate is 12.5 percent, is strongly opposed to the 15 percent rate proposed by the United States.

He tweeted after the meeting that "I look forward now to engaging in the discussions at OECD (the Organisation for Economic Co-operation and Development). There are 139 countries at the table, and any agreement will have to meet the needs of small and large countries, developed and developing."

Corporate tax rate in the European Union (EU) average is 20.7 percent in 2021 but, its members have as low as 9 percent in Hungary and 12.5 percent in Ireland, which prove to be attractive to multinationals.

Britain has made securing an agreement on digital tax a key priority for its G7 presidency with the fairer system raising more tax to pay for public services.

The new agreement is expected to be discussed in further detail at the Group of 20 financial ministers and central bank governors meeting in July.

The ministers also agreed to work together to ensure a strong, sustainable, balanced and inclusive global recovery that builds back better and greener from the COVID-19 pandemic, and once the recovery is firmly established, they need to ensure the long-term sustainability of public finances to enable them to respond to future crises.

Other priorities in the meeting include transformative effort to tackle climate change, biodiversity loss and continued support to low-Income and vulnerable countries.

The G7 includes Britain, Canada, France, Germany, Italy, Japan and the United States. Britain holds the G7 presidency this year. British Prime Minister Boris Johnson will gather the G7 leaders for a summit in Cornwall in South West England next week.

Source: Xinhua  

   

A remittance of 141 crore dollars came in 22 days



Staff Correspondent, Barta24.com, Dhaka
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In the first 22 days of this month of March, expatriates sent remittances of 141 crore 44 lakh dollars through legal channels and banking channels. According to this, an average of 6 crore 43 lakh dollars of remittances came to the country every day.

This information was revealed in the updated report of Bangladesh Bank on Sunday (March 24).

A review of the data showed that expatriates sent 141 crore 44 lakh 50 thousand dollars to the banks on the 22nd day of March. Of this, 18 crore 24 lakh 60 thousand dollars came through the state-owned banks.

Besides, 2 crore 15 lakh dollars came through specialized banks, 120 crore 47 lakh 80 thousand dollars through private banks and 57 lakh 10 thousand dollars through foreign sector banks.

According to the Central Bank, from March 16 to 22, expatriates sent 39 crore 54 lakh 70 thousand dollars to the country. From March 9 to 15, remittances of 50 crore 60 lakh 70 thousand dollars have arrived in the country. Besides, 51 crore 29 lakh 10 thousand dollars came from 1 to 8 March.

And last February, 216 crore 60 lakh dollars remittances came to the country which is the highest in the current financial year. 

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Market system must be freed from influence of invisible hand: FBCCI



Staff Correspondent, Barta24.com, Dhaka
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Business leaders have called for the supply chain to be freed from the influence of the invisible hand to stabilize commodity markets.

They agreed on this in the price monitoring committee coordination meeting of FBCCI at the FBCCI office in Motijheel on Sunday (March 24).

The meeting was presided over by FBCCI senior vice-president Md. Amin Helali. He said that common people often make harsh comments about the prices of goods. But most traders want to conduct their business transparently. All of us are getting a bad name because of a few people. It is important to get out of this situation. He commented that an ideal businessman can never become a black marketer.

The senior vice president of FBCCI Amin Helali urged the market committees to record the problems and obstacles in each market of the capital and submit them to FBCCI. He said that FBCCI will discuss the problems of traders at the highest level of the government.

Warning against traders who destabilize the supply chain, the FBCCI senior vice-president said that the supply chain must first be freed from the influence of the invisible hand to keep commodity prices within the reach of the masses. We will actively work to stop visible and invisible extortion in the markets.

The meeting was attended by retailers and wholesalers from different areas of the capital. At this time, vendors of different markets of the capital said that vendors with permanent licenses are not responsible for destabilizing the market. They also claim that those who buy and sell goods on the sidewalk or road by subsidizing various quarters are responsible for destabilizing the market.

Permanent licensed peddlers complain that when trucks loaded with goods enter the markets of Dhaka at night - the goods are exchanged 2 to 3 times while in the vehicle and the price increases. In this case, floating traders are largely responsible, but the government's market control agencies raid, jail and fine the permanent traders. And the temporary or floating traders disappear before the light of day. As a result, in all cases, the permanently licensed hawkers have to suffer the punishment.

It was informed in the meeting that the price monitoring committee of FBCCI will go to different markets of the capital and meet with the market committees in the next few weeks. At this time, Amin Helali urged the market committees to collectively move forward to solve the problem.

The meeting was attended by FBCCI director Hafez Haji Haroon-or-Rashid, Hafez Haji Mohammad Enayet Ullah, Azizul Haque, Kausar Ahmed, Md. Niaz Ali Chisti, Haji Alauddin, Md. Abul Hashem, Price Monitoring Committee members, market committee leaders and business leaders.

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Exim and Padma Bank are merging



Staff Correspondent, Barta24.com, Dhaka
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Private Padma Bank is going to merge with Exim Bank. In the meantime, Bangladesh Bank has also been informed about the merger of the two banks.

This decision was taken unanimously in the board meeting of Exim Bank on Thursday (March 14).

Chairman of Exim Bank Nazrul Islam Mazumder confirmed this to the media.

According to a director of Exim Bank, a decision has been taken to merge private Padma Bank with Exim Bank. Soon it will be sent to Bangladesh Bank for permission. It will come into force after the approval of the regulatory body.

The same information was also known from a related official of Padma Bank.

Earlier, Bangladesh Bank had said that weak banks would be allowed to voluntarily merge by December. Failing this, a final decision on them will be taken in March.

Recently, Bangladesh Bank published the Banks Health Index (BHI) and Heat Map. According to that report, Padma Bank is in the red zone and Exim Bank is in the yellow zone.

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Signing agreement of Global Islami Bank Plc with Bangladesh Bank



Staff Correspondent, Barta24.com, Dhaka
Signing agreement of Global Islami Bank Plc with Bangladesh Bank

Signing agreement of Global Islami Bank Plc with Bangladesh Bank

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Two agreements have been signed between Global Islami Bank PLC and Credit Guarantee Department of Bangladesh Bank. The agreement was signed to provide credit guarantee facilities to women entrepreneurs and the agricultural products processing sector with the aim of achieving the desired expansion of small scale industries, job creation and economic growth.

The agreement was signed on Tuesday (March 12) at Jahangir Alam Conference Hall of Bangladesh Bank, Head Office.

Under these two agreements, Global Islami Bank will be able to make unsecured investments in women entrepreneurs and agricultural products processing sector by taking the credit guarantee facility of Bangladesh Bank.

In the presence of Bangladesh Bank Deputy Governor Noorun Nahar and Executive Director Mohammad Jamal Uddin, Managing Director Syed Habib Hasnat on behalf of Global Islami Bank and Nahid Rahman, Director of Credit Guarantee Department on behalf of Bangladesh Bank signed the agreement. Global Islami Bank's Executive Vice President and Head of Investment Division SM Mizanur Rahman was also present on the occasion.

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