Bangladesh Bank Headquarters

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.

BB needs long-term policies for forex market: analysts
Bangladesh Bank needs to devise long-term policies for the foreign exchange market to rein in exchange rate volatility, analysts said yesterday. They said different types of banks quote different prices for the dollar, which is one of the reasons behind the unusual fluctuation in the exchange rate in Bangladesh. The other factors include gap in inflow and outflow of the dollar, inefficiency in foreign exchange management and falling inflow of remittance.

Next FY to see 15.4% rise in subsidy
Subsidy spending is set to hike by 15.40% in next fiscal year from that in this year’s revised outlay, mainly due to incentive to agriculture sector and cash credit sanctioned to Petrobangla for importing gas. A sum of Tk27,500 crore has been planned to allocate for subsidy purposes in the next fiscal year, according to documents obtained from the Finance Ministry.

FBCCI to press for multiple VAT rates in jt meeting with NBR today
The Federation of Bangladesh Chambers of Commerce and Industry at today’s joint budget consultative meeting is going to press for its demand for multiple rates of value-added tax based on value addition in different sectors instead of the 15 per cent set in the new VAT law for all goods and services. The apex trade body will also demand setting VAT at 0.5 per cent for retailers and shopkeepers in the new law, according to the FBCCI budget proposals which will be placed before the meeting where finance minister Abul Maal Abdul Muhith will be present.

High corporate tax hinders FDI, internal investment
High corporate tax in Bangladesh, compared to that of other countries, discourages both foreign and domestic investors from investing and expanding their existing units here. Experts and industry-insiders hold this view, underpinned by comparative analyses of the taxation especially in neighbouring countries who net higher sums of investment capital on the float.

Weekly review: Bangladesh’s stocks edge up riding on banks
Bangladesh’s stocks edged up last week that ended on Thursday, after remaining down in the past two straight week, as investors showed their buying appetite on large-cap banks issues. Brokers said corporate declarations continued to stimulate investors to take sector and scrip-wise moves, helping the market to close positive zone.

Fresh spike in rice prices
Prices of all varieties of rice crept up owing to crop losses for flash floods, rainfall, disease attacks on standing paddy and depleting stocks. The price of the coarse variety of rice went up 13 percent to Tk 42-45 a kilogram at retail levels in Dhaka yesterday, from Tk 37-40 a month ago.

BPC free to import furnace oil sans duty
The state-owned Bangladesh Petroleum Corporation (BPC) will start duty-free import of furnace oil for the first time in the country aiming to supply the fuel to both private and public sector power plants at reduced rate, said officials. “We will start duty-free import of furnace oil as the country’s revenue board has granted us the facility,” BPC’s marketing director Mir Ali Reza told the FE Saturday.

Businesses to continue fight for 7pc VAT rate: DCCI
The Dhaka Chamber of Commerce and Industry on Saturday reiterated its demand for a reduction in value-added tax rate to 7 per cent from the 15 per cent set in the new VAT act which is scheduled to come into force from July 1 this year. ‘Businesses will continue their fight for the VAT rate reduction until their demand is met,’ said DCCI president Abul Kasem Khan at a press briefing the chamber body arranged at its office in Dhaka to place their budget proposals for the next fiscal year.

BBN/SSR/AD