Dhaka, Bangladesh (BBN) – The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Tax benefits for IT sector likely to be extended
The government is likely to extend the tax exemption benefits for software development and information technology-enabled services (ITES) by another five years to encourage investment, said a senior official of the finance ministry. The tax waiver on income from software and ITES may be extended to 2024 from June 30, 2019 now — in line with the government’s Digital Bangladesh vision. The proposal is likely to be made when Finance Minister AMA Muhith places the budget for fiscal 2015-16 in parliament, officials said.
BB checking banks’ BoE to unearth capital flight
The central bank has started scrutinising bills of entry (BoE) received from commercial banks to unearth possible capital flight in the form of capital machinery import, officials said. A good number of banks, particularly the private commercial ones, have already provided their information regarding capital machinery import over the last two years. The Bangladesh Bank (BB) recently asked the commercial banks concerned to provide the information against the backdrop of alleged capital outflow from the country through capital machinery import.
Defaulted industrial loans soar by 39.67pc in July-March
Defaulted loans in the industrial sector skyrocketed by 39.67 per cent in the first nine months of the current financial year 2014-15 compared with that in the same period of the FY14 due to a dull business climate amid political unrest and uncertainty. According to the latest Bangladesh Bank data, the defaulted industrial loans stood at Tk 18,645.38 crore in July-March of the FY15 against Tk 13,349.47 crore in the same period of the FY14. An economist and businesspeople said that the industrial sector faced a major setback in recent months due to political violence that fuelled the defaulted loans in the sector.
DSEX closes 11-week high Monday
Bangladesh’s stocks ended higher amid increased turnover though technical glitch delayed trade on the major bourse for second consecutive day on Monday. Trading, that usually takes place between 10:30am and 2:30pm, started at 12:15pm and continued till 4:15pm, after one hour and 45 minutes late due to the technical glitch. Despite delayed trading, DSEX, the prime index of the DSE crossed the 4,600-mark and ended at 4,615.01 points, gaining 130.39 points or 2.90 percent. It is highest level of DSEX in 11-week. DS30 index, comprising blue chips, gained 53.84 points or 3.20 percent to close at 1,736.31 points. DSES index rose 27.43 points or 2.53 percent to end at 1,108.83 points.
Inflow of remittances rise ahead of Ramadan
The flow of inward remittance increased significantly this month ahead of the Holy Ramadan, officials said. Bangladesh received $ 988.33 million as remittances between May 1 and May 22 from Bangladeshi nationals who are working abroad, according to the central bank’s latest statistics, released on Monday. “It’s a satisfactory level of inward remittance flow,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka. “The inflow of remittances may cross $1.30 billion by the end of this month if the existing trend continues,” the central banker noted.
Regulator asks DSE to explain technical failure
The stockmarket regulator yesterday asked Dhaka Stock Exchange to explain the technical breakdown in the bourse’s main engine that halted trade for almost two hours for the second day. “The regulator sat with the Dhaka bourse to hear from them why and how the malfunction took place for two days in a row,” said Saifur Rahman, spokesman for Bangladesh Securities and Exchange Commission.
Matlub elected as FBCCI President
Nitol Niloy Group Chairman Abdul Matlub Ahmad was elected the new president of the Bangladesh’s apex trade body, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), on Monday. Matlub will retain the helm of the FBCCI for 2015-17 term. Former BGMEA president Shafiul Islam Mohiuddin has become the First Vice President of the apex trade body while Chittagong Chamber’s Mahabubul Alam elected as Vice President. Newly elected 52 directors of the FBCCI elected the trio without any contest during the meeting of the Board of Directors on Monday.
Default credit card holders face trouble to repay loans
Lack of a policy to repay default loans against credit card is taking a heavy toll on default clients who allegedly face threats and harassment from the issuing banks. Treated as consumer financing, the credit card loans are charged with high interests by the banks that have no definite policy to recover the loans. As a result, the cardholders face problem if they default as the banks do not allow the credit card loans to reschedule or any chance to pay the dues through installments favouring the clients. Banks recover the money from credit card defaulters, allegedly issuing threat and harassing them physically and socially.
BBN/SSR/AD-26May-9:50 am (BST)