Sunday’s morning business round up of Bangladesh

Last updated: July 5, 2015

Dhaka, Bangladesh (BBN) - The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.

Self-assessment tax files to come under NBR scrutiny
All income tax files under universal self-assessment will come under scrutiny from the current fiscal year (FY) after the tax authority incorporated a new provision in the Income Tax Ordinance of the budget. The provision titled 'Scrutiny assessment' will empower taxmen to examine arithmetical errors in the tax returns of individual and corporate taxpayers from FY 2015-16.

Dhaka, Beijing to sign agreement
Dhaka and Beijing plan to ink a deal on ‘financing cooperation’, to boost their development relations and promote Chinese concessional loans in major infrastructure areas in Bangladesh. The proposed deal, on which both Eximbank of China and economic relations division of the finance ministry had a number of meetings last month, is expected to be signed by next month, a senior finance ministry official said. ‘We are working on the proposed agreement as the draft agreement remains specific and action-oriented towards Chinese financing and project selection,’ Asif-uz-Zaman, additional secretary, ERD, finance ministry told New Age.

Bangladesh Bank purchases $3.76bn from banks in FY 15
The central bank of Bangladesh purchased US$3.76 billion from the commercial banks directly in the fiscal year (FY) 2014-15 to help keep the inter-bank foreign exchange (forex) market stable, officials said. “The central bank has followed a market-based exchange rate policy continuously to avoid excessive volatility,” a senior official of the Bangladesh Bank (BB) told BBN while explaining the main objective of intervention in the market.

Trade deficit doubles
Trade deficit almost doubled in the first ten months of the just-concluded fiscal year owing to slow export growth as a result of the image crisis of the garment sector that rakes in the bulk of the receipts. Between the months of July and April last fiscal year, trade deficit reached $8.5 billion from $5.51 billion a year earlier, according to central bank statistics.

Well Food expands footprint in capital
Well Food, a fast-growing baker, has set up a factory in Dhaka investing Tk 500 million to grab a sizable share in the city's booming confectionary market. The Chittagong-based thread-garments-hospitality-real estate-food chain group has already opened 10 outlets in the city to sell its popular bread, bun, cookies, hot snacks, sweets and pound cakes to the city people. It has set up a factory in Gazipur to ensure uninterrupted supply in the city's outlets.

Structural faults found in 4 more RMG units
The inspection teams appointed by the government and ILO have sent a list of three readymade garment factories to the review committee as the teams found structural faults at the units while the European retailers’ group has sent the name of one more factory to the committee after detecting serious faults at the unit. Veritas Engineering and Consultant, hired by the International Labour Organisation to conduct safety inspection in the garment factories which are not suppliers of the EU and American retailers groups, has recently found structural faults at Emerald Dresses Limited at Gazipur, Mouli Fashions Ltd at Tongi, Gazipur and Orient Dresses Ltd at Ibrahimpur in the capital.

New fiscal begins with strong economic indicators in Bangladesh
The new fiscal year (FY) 2015-16 has started amid strong trend in major economic indicators, raising the prospect of achieving higher growth and more economic stability in the coming days of Bangladesh. The key economic indicators, including per capita income, inflow of remittances, foreign exchange reserve, inflation, export earnings, import and exchange rates maintained healthy trend at the very beginning of FY15, according to experts.

Garment exporters now look to conquer local market
After conquering the global apparel market, the country's garment makers have now turned their attention to the domestic market, hoping to repeat their success. Over the last one year, at least five export-oriented garment makers -- who have been supplying clothing items to Western brands like Walmart, Hugo Boss, JC Penney, H&M, Marks & Spencer and so on for decades -- have opened plush stores in Dhaka.

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