Dhaka, Bangladesh (BBN) - The Bangladesh Business News (BBN) prepares the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh
Term lending down, working capital up: Disbursement of industrial term loan declined by nearly 4.0 per cent in the first nine months of the current fiscal year (FY) amid a substantial rise in overall industrial lending. Such a lower disbursement of term lending has been attributed to the prevailing political uncertainty and inadequate supply of power and natural gas. "Disbursement of industrial term loan fell slightly during the period under review as entrepreneurs are still maintaining a 'go-slow' policy to avoid financial risks," Masum Patwary, general manager of the SME and Special Programmes Department of the Bangladesh Bank (BB) told the FE Sunday. The disbursement of industrial term loan came down to Tk 308.49 billion in the July-March period of the FY 14 from Tk 320.15 billion in the corresponding period of the previous fiscal.
GDP growth may cross 6pc: Economic growth is likely to cross the 6 percent-mark this fiscal year despite the incapacitating political turmoil in the first half, according to a draft estimate by the Bangladesh Bureau of Statistics. If the new base year of 2005-06 is considered, the GDP growth for fiscal 2013-14 is likely to be around 6.2 percent, down from its earlier estimation of 6.5 percent, according to a planning ministry official. Using the same base year, the World Bank computed the GDP growth to be 5.4 percent and Bangladesh Bank 5.7 percent to 6.1 percent. BBS officials said the GDP growth rate will be published using the new base year this year to reflect the changes the economy has underwent over the years. Six additional sectors have been to the economy in the new base year to take the total number of sectors to 21.
Bangladesh’s budget session to begin June 3: President Abdul Hamid has summoned the first budget session of the 10th parliament on June 3 (Tuesday). The session will start at 5:00 pm on the day, a Parliament Secretariat statement said in Dhaka on Sunday. Finance Minister AMA Muhith will place the budget for the fiscal year 2014-15 on June 5, according to officials. The size of the budget for the FY 15, as indicated by the finance minister, is expected to be around BDT 2.50 trillion. Budget size for the current FY is BDT 2.22 trillion. Size of the Annual Development Programme (ADP) is likely to be set at BDT 800 billion, projecting 32 percent growth, against the revised one of BDT 600 billion for the current fiscal year.
NBR plans to cut tax rebate for individuals: The National Board of Revenue is likely to propose reduction in tax rebate against investments and donations by individual taxpayers, insiders said. The proposal may be included in the upcoming budget amid reports from NBR's field offices that increased tax rebate, now 15 percent on investments and donations in certain areas, has affected revenue collection. The government at the beginning of the current fiscal year raised the tax rebate to 15 percent, from 10 percent in the previous year. The investment ceiling was also increased to 30 percent of an individual's total income, from 20 percent before. "The privilege has affected tax flow. In many cases, taxpayers do not need to pay tax at all, due to the rebate," said a deputy commissioner of tax at the NBR, asking not to be named.
NBR plans to reduce tax rebate on investment: The National Board of Revenue is likely to reduce the rate of tax rebate on investment by individual taxpayers in different sectors including in stock markets in the coming budget for fiscal year 2014-15, officials of the revenue board said. They said that the rate of rebate might be set at 10 per cent of any investment and donation by an individual taxpayer from the existing 15 per cent. Currently, an individual taxpayer enjoys 15 per cent rebate on investment and donation amounting up to 30 per cent of total income, or Tk 1.5 crore or actual investment which comes less. The revenue board in FY 2013-14 increased the rate of rebate by 5 percentage points from 10 per cent along with the investment ceiling.
APRACA general assembly begins in Bangladesh: The 64th EXCOM Meeting and 19th General Assembly of Asia-Pacific Rural and Agricultural Credit Association (APRACA) along with regional forum on “Risk Management for Smallholder Farmers and Communities” started in the capital Dhaka on Sunday. At least 110 delegates from APRACA member countries are attending in the two-day long programmes. This year Bangladesh Bank (BB), the country’s central bank, is going to be chairman of the international organization, officials said.
BBN/SSR/AD-19May14-11:35 am (BST)