Bangladesh's multinational electronics company Walton Hi-Tech Industries PLC has received National Export Trophy's gold crest from Prime Minister Sheikh Hasina in recognition of its outstanding contribution to the exports of electrical and electronics products during the financial year 2021-2022.

A total of 77 companies in 32 product categories were awarded gold, silver and bronze crest of “National Export Trophy’ at a programme held at the Osmani Memorial Auditorium in the capital on Sunday, according to a press release.

Walton was awarded the gold crest in the electric and electronics product export category, it said

Attending as the chief guest, Prime Minister Sheikh Hasina handed over the gold crest of Bangabandhu Sheikh Mujib Export Trophy' to Walton Hi-Tech Industries PLC's Former Chairman and Incumbent Director S M Nurul Alam Rezvi.

Tipu Munshi, president of the parliamentary standing committee on commerce ministry, also attended the function as special guest while State Minister for Commerce Ahasanul Islam Titu was in the chair, said the release.

Among others, Export Promotion Bureau (EPB) Vice-Chairman Md. Anwar Hossain, Commerce Secretary Md. Selim Uddin and FBCCI President Mahbubul Alam were also present.

Expressing his reaction, Walton’s Former Chairman and Incumbent Director S M Nurul Alam Rezvi said, “Once the domestic electrical and electronics market was fully import-oriented. But now, 'Made in Bangladesh' labelled electrical and electronics products are being exported to more than 40 countries around the world. Undoubtedly, it's a great pride for us. As a recognition of this achievement, Walton was awarded National Export Trophy. We thank the authorities concerned for giving us this award.”

He also said that Walton made a bright future of Bangladesh in manufacturing hi-tech products. Walton is exporting ‘Made in Bangladesh’ labelled electronics and electrical products to over 40 countries, including countries in Asia, Middle East, Africa, Europe and America, brightening Bangladesh’ image to the global arena.

According to Walton's Global Business Unit, Walton is moving ahead with the vision of becoming one of the best global electronics brands. In a bid to expand its global business in the markets of Australia, Europe and America, Walton also took part different fairs around the world. Walton has already grabbed international attention after participating in the world’s most influential tech event ‘Consumer Electronics Show (CES)-2023’ held at Las Vegas in the USA and Canton Fair in China, the release also said.

MSH

Companies and organisations will be required to file tax returns on the income generated by employee welfare funds from the current fiscal year and pay a 27.5 percent tax on the earnings. 

The Income Tax Act 2023 incorporates the provision, lifting the tax exemption and amnesty on the compulsion to file returns for funds such as provident funds, gratuity funds and workers' profit participation funds maintained by the private sector.

The law, however, has exempted government-managed provident funds from taxation, raising questions.

TIM Nurul Kabir, executive director of the Foreign Investors' Chamber of Commerce & Industry, said there were many other avenues to collect tax.

"Employees benefit from provident funds after their retirement. So, the authority should not slap taxes on retirement benefit."

He said while levying the tax, the government has not treated provident funds of the private and public sectors equally.

"It is discriminatory," he said, adding that they would appeal to the tax authority for the withdrawal of the tax on income from provident funds.

Debabrata Roy Chowdhury, director for legal, regulatory and corporate affairs at Nestlé Bangladesh PLC, said the introduction of income tax on trust funds would lower the overall income from such schemes.

"This will have an adverse long-term impact on retired employees of private organisations."

Chowdhury urged the authority to address the issue in line with the spirit of the government's initiatives aimed at ensuring social security for private sector employees.

"The recent introduction of the universal pension scheme for private sector employees is a good example of that."

A senior official of the NBR, on condition of anonymity, said the income of government-managed provident funds was exempted in line with the Provident Fund Act 1925.

He said provident funds under the private sector had been historically exempted and there was no requirement to submit tax returns. As a result, it was unclear whether the funds were properly utilised.

"From now onwards, we will see proper disclosure."

The tax official said the contribution of payroll tax is about 3 percent of the total income tax although it should increase as the economy is growing.

Md Shahadat Hossain, a former president of the Institute of Chartered Accountants of Bangladesh, said income from investment in savings certificates, where people invest as a source of future earnings, is already taxed.

"From that perspective, the imposition of tax on provident and other employee welfare funds seems okay."

However, Towfiqul Islam Khan, senior research fellow at the Centre for Policy Dialogue, said social protection for private sector employees was low.

"Provident and other workers' welfare-related funds provide little social protection. The imposition of tax will increase inequality. But there can't be any discrimination in taxation between private and government provident funds."

Khan, citing the latest income tax law that replaced the Income Tax Ordinance 1984, said the NBR tried to find new avenues to increase tax collection and improve the nation's revenue-gross domestic product ratio, which is one of the lowest in the world.

"We can see the desperation of the tax authority to boost collection. This ultimately reveals the inability of the NBR to catch the tax evaders and illicit money makers."