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.
Accounts with over Tk 1 crore increased by 8,276 in 2019
Balance in the bank accounts with more than Tk 1 crore in deposits has increased by 10.1 per cent or Tk 48,337 crore in the year 2019, reflecting a rapid increase in wealth accumulation by the country’s rich people. According to a Bangladesh Bank data released in June this year, balance in such bank accounts has increased to Tk 5,26,997 crore at the end of December 2019, against Tk 4,78,660 crore a year ago. Besides, the number of bank accounts with more than Tk 1 crore in deposit has increased by 11 per cent during last year.
NBR’s bid to cap promotional expenses leaves firms hot and bothered
The revenue authority has sought to tax companies’ promotional expenditure exceeding 0.50 per cent of their turnover, an unprecedented move that has left firms flustered. Promotional expenses exceeding the proposed cap would instead be listed as income and therefore, companies will have to pay tax on the expenditure from the upcoming fiscal year.
Corporate tax cut won’t benefit cos
Slashing of corporate tax in the budget is unlikely to help bring down the effective tax rates of companies, hamstrung by a set of new provisions. Despite the cutback on corporate tax for non-listed firms, the effective tax rate of a company could go up to 40 per cent in FY 2021, said businesses and tax experts.
FBCCI will not help loan defaulters receive incentives
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) will not assist loan defaulters in receiving the government’s incentives package to help the entrepreneurs who have suffered during the global epidemic. FBCCI President Sheikh Fazle Fahim said this while addressing a meeting with all the bank officials of Narsingdi district, recently.
DSE turnover remains below Tk 1.0b-mark for 12 sessions
Stocks remained almost dull for the past 16 sessions Wednesday as the investors are losing appetite for buying shares even at the lowest possible prices amid worsening pandemic situation. DSEX, the key index of the Dhaka Stock Exchange, went up by 1.48 points to settle at 3,963 during the three-hour trading session. The DSE core index is hovering between 3,950 and 3,970 points in more than two weeks as floor price limitation and disappointment over the proposed budget kept the investors at bay.
Taka gains on falling imports, rising remittances
The local currency has started appreciating suddenly due to a massive fall in import payments and rise in remittances in recent weeks. This helped the country’s foreign exchange reserve surpass the $35-billion mark for the first time yesterday, according to data from the central bank. Typically, an increase in the value of one currency makes imports cheaper and exports costlier.
BB approves Tk 3,000cr in loans for 140 entities
The Bangladesh Bank has approved around Tk 3,000 crore in loan proposals of 140 entities, which were placed by different banks for approval under the government-announced package meant for the industries and service sectors affected by the coronavirus pandemic. Besides, the process of approval for another Tk 2,000 crore in stimulus loans would be completed in a few days, which would take the total amount of BB-approved stimulus loans to around Tk 5,000 crore.
Covid-19 fallout: Income drops to create 16.4m new poor this year
Bangladesh will have 16.4 million new poor in 2020 as the incomes of working class in urban and rural areas have fallen sharply due to the prolonged lockdown. A research paper titled “Poverty in the time of Corona: Short-term Effects of Economic Slowdown and Policy Responses through Social Protection”, conducted by Binayak Sen, Research Director of Bangladesh Institute of Development Studies (BIDS), estimated the figure.