Finance Minister AMA Muhith BBN file photo

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

Sovereign wealth fund, taka bond plans scrapped: Muhith
The government may not go ahead with its plans to set up a $10 billion sovereign wealth fund in the end — in what can be termed a sharp change of mind after years of talking up the idea. In February this year, the cabinet gave the go-ahead for the setting up of the fund with money from the record foreign currency reserves, which would be used for government investment in long-term projects in the power, energy and infrastructure projects.

Budget deficit may break 5.0pc barrier
Country’s budget deficit may cross its record-highest 5.0 per cent in a decade as revenue receipts could fall below the expected level, finance sources predict. People familiar with the developments in the finance division told the FE Sunday this high level shortfall does indicate that borrowings from banks and non-bank sources will rise in the year to June 30.

Govt in dark as Chevron sells stakes
US oil company Chevron has entered into an agreement with Chinese Himalaya Energy Co Ltd to sell its three onshore gas fields and associated assets in Bangladesh keeping the government in dark. A release issued by Chevron Bangladesh on Monday also said, ‘Closing of the transaction is subject to the satisfaction of certain closing conditions.’ Chevron now operates the gas fields, Bibiyana in block 12, Jalalabad in block 13 and Moulvibazar in block 14, under three production sharing contracts with Petrobangla, the state-run Oil, Gas and Mineral Resources Corporation.

Over Tk33,000cr in VAT unpaid by big businesses
An amount of Tk33,079 crore value-added tax that has been overdue from big businesses under the Large Taxpayers Unit cannot be realised yet as 804 cases remain pending in court for years. Assistant Commissioner of Tax (ACT) Badruzzaman Munshi disclosed the facts while presenting a summary on VAT-related cases of the LTU-VAT at a dialogue in Dhaka on Monday. Of the total overdue amount, a sum of Tk16,275.72 crore remains stuck due to 30 cases lodged by 30 companies, he said.

Bangladesh’s stocks close flat amid low turnover
Bangladesh’s stocks ended almost flat on Monday, after facing sharp decline in the previous session, as investors were active both sides of trading fence. Analysts said the market finished almost flat as optimistic investors showed their buying appetite on some large-cap stocks while risk-averse investors continued on selling mood, taking the market flat red zone.

Govt plans huge tax reciept target on new VAT law
The government has planned to set an ‘ambitious’ revenue generation target in the new fiscal year basing on collection from the new Valued Added Tax law that would put additional pressure on mid and low income groups. Finance division officials said the revenue collection target of the National Board of Revenue has been proposed at Tk 2,36,020 crore in the financial year 2017-18. The government wants the taxmen to generate 31 per cent or Tk 56,020 crore more revenue in the new fiscal year from the outgoing fiscal year’s target by dint of the new VAT law, they said.

BD’s shift to industrial economy needs more efficient governance
The transition of Bangladesh to a deeper and inclusive industrial economy demands a much more effective machinery of governance, eminent economist Professor Rehman Sobhan has said. “The political leadership in today’s world needs to be driving on a modern jet plane, not a DC3 of World War Two era,” he said while speaking at the closing session of a two-day seminar, organised by Bangladesh Institute of Development Studies (BIDS).

Tk 950cr tiles factory starts production in Bagerhat
Lockpur Group, a top frozen and sea food exporter, has set up a tiles factory under a joint venture with Chinese investors in Bagerhat at Tk 950 crore. This is the biggest ever investment in the tiles industry in Bangladesh and will aim to capture a major stake in the growing local market, according to industry-people. The factory is named Southeast Union Ceramic Industries (SEUCIL) where Chinese investors hold 60 percent shares while Lockpur Group the remainder.

BBN/SSR/AD