Banks request BB to review stamp duty on export bills

Staff Correspondent | Published: 00:00, Nov 07,2019

 
 

Authorised dealers of the banks on Wednesday requested the Bangladesh Bank to reconsider a regulatory instruction that has made 0.2 per cent stamp duty mandatory on the bill of exchange against export.

Besides, they also requested the central bank to formulate system automation friendly process so that the banks can facilitate online banking and mobile banking services for non-resident taka accountholders.

They made the requests at the 24th Bangladesh Bank- Authorised Dealers’ Forum meeting held at the BB headquarters on the day where top executives of the central bank were present.

Bankers at the meeting informed that the Finance Bill- 2012 in line with the Stamp Act, 1899 instructed to attach stamp at the rate of 0.2 per cent on the ‘Bill of Exchange’ value.

However, it does not specify that such stamp duty would be applicable to the bill of exchange issued against export.

Despite the fact, the banks were imposing stamp duty at the rate of 0.2 per cent against bill of exchange issued against export following instruction from the Bangladesh Bank.

Due to lack of clarity in this regard, the exporters have been raising objection to paying such duty.

For instance, exporters are supposed to pay Tk 20 lakh as stamp duty on bill of exchange issued against export bills, adding additional pressure on the exporters, they said.

Raising the issue, they requested the central bank to issue clarification or circular in this regard.

The central bank, however, informed the authorised dealers that the issue of stamp duty was very much related to the taxation and the National Board of Revenue reserves the authority over the issue, an official of the BB told New Age after the meeting.

If any clarification is needed, banks should request for clarification from the NBR, he said.

Besides the stamp duty issue, an official of BRAC Bank mentioned that it had become tough for the banks to comply with different conditions of the Foreign Exchange Guidelines while dealing with the system automation of non-resident taka account.

Taking the growing public interest of conducting financial transaction at home into consideration, the banks requested the central bank to issue instruction to facilitate such transaction.

At the meeting, representative of a bank also requested the central bank to clarify how much insurance coverage would be required to open letter of credit against import.

The representative also mentioned that many of the importers were requesting for opening import LC with 100 per cent insurance coverage as there was no specification for ensuring 110 per cent insurance coverage.

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