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.

Excise duty hike to go
Finance Minister AMA Muhith yesterday categorically said the government would withdraw the proposed increase in excise duty on bank deposits amid continuous criticisms. The change would be announced before the passage of the new budget on June 29, he said.

LTU issues show-cause notices to 11 large taxpayers
The large taxpayers unit (value-added tax) of the National Board of Revenue has recently issued show-cause notices to 11 large taxpayers including six mobile operators for non-payment of Tk 446 crore in VAT, NBR officials said. Officials alleged that the taxpayers either evaded the VAT or refrained from paying the money to the government exchequer.

New VAT rate likely to be postponed
The government has planned to postpone implementation of the controversial new value-added tax law from July 1 because of the negative impact on people’s life, which could affect the ruling party’s standing ahead of next general election, said finance ministry officials. Besides, there has been strong opposition from the country’s business community against implementation of the new law which imposes a flat rate of 15% VAT.

Bangladesh’s stocks slip into red after three-day
Stocks slipped into the red on Sunday with turnover dipping below BDT 5.0 billion mark on the prime bourse as investors reluctant to take fresh investment ahead of Eid festival. Analysts said the market faced mild correction as investors preferred to book quick-gain on their investment while some were observing the market movement ahead of Eid festival.

High interest of savings tools takes toll on bonds
High interest rates on the national savings schemes are taking a toll on the transactions of treasury bills and bonds in the secondary market, Bangladesh Bank (BB) officials said. Turnover that includes purchase and sale of treasury bills and bonds in the secondary market declined to Tk 1,122 crore in May this year from Tk 1,786 crore in April, BB data shows.

4 tricks being used: BIBM
A large amount of money is being laundered abroad from Bangladesh through export and import business or trade financing as a section of unscrupulous businessmen is playing four tricks for the purpose, according to a Bangladesh Institute of Bank Management research report.

Trade services becomes challenging to banks: Sur Chowdhury
Trade services are becoming increasingly challenging to the banks and financial institutions of Bangladesh, SK Sur Chowdhury, deputy governor of Bangladesh Bank (BB), has said. “Though trade finance is seen as a relatively safe and liquid asset, with low default rates, however, it is self-liquidating and short-term in nature; banks can run down their trade finance portfolios quickly in times of financial stress,” the deputy governor said while addressing at the workshop as the chief guest.

The limits of forex limits
Bangladesh Bank has rules for how much foreign currency an individual can carry while travelling abroad, but there are no separate policies for casual travel and business trips. This makes it difficult for entrepreneurs to make business trips which may entail more costs than regular travel. Sometimes, businesspeople may even resort to illegal means to carry dollars going abroad.

BBN/SSR/AD