Dhaka, Bangladesh (BBN) - The Bangladesh Business News (BBN) prepares the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Upward revision of wealth tax, tax slab in budget likely: The well-off section of the people may witness an upward revision of tax measures on their wealth and tax slab in the budget for upcoming fiscal year (FY), sources concerned said.The National Board of Revenue (NBR) is likely to increase income tax or surcharge on net wealth and incorporate a new slab 30 per cent for individual taxpayers having annual income above Tk 3.0 million. People having wealth above Tk 100 million to Tk 200 million may have to pay 15 per cent surcharge in addition to their normal taxes. Net wealth above Tk 200 million to Tk 300 million will be subject to pay 20 per cent surcharge while above Tk 300 million, it is 25 per cent.
Japan pledges $5.9b:Japan yesterday pledged to provide economic assistance worth $5.9 billion to Bangladesh over the next four to five years. Japan will "extend economic cooperation amounting to about 600 billion yen ($5.9 billion) for roughly four to five years," Japanese Prime Minister Shinzo Abe said. Abe's announcement came at a joint press conference with his Bangladesh counterpart Sheikh Hasina after the two leaders held formal talks at the Japanese premier's office in Tokyo. "Bangladesh has great economic potential. In order to realise its potential and expedite further growth, Japan has come up with the concept of the Bay of Bengal industrial growth belt," he said. The economic aid will be given through implementation of the concept of the Bay of Bengal Industrial Growth Belt (BIG-B), proposed by the Japanese premier.
Hasina, who arrived in Tokyo on Sunday on a four-day official visit, earlier signed a 21-point joint statement with Abe.
Cos’ minimum tax likely to be halved: The government is likely to reduce the minimum tax on companies to 0.25 per cent from the existing 0.50 per cent while impose 10 per cent tax on income derived from microcredit operations of non-governmental organisations in the upcoming budget for the financial year 2014-2015, officials of the National Board of Revenue said. Finance minister AMA Muhith may propose the reduction of minimum tax and the imposition of tax on microcredit business of NGOs in his budget speech in the parliament on June 5, they said. Both the changes are being proposed following the demand from the business community and trade bodies including the Federation of Bangladesh Chambers of Commerce and Industry. Currently, income derived from the operation of the microcredit by NGOs registered with NGO Affairs Bureau is exempted from paying tax though income derived from commercial activities is taxable. The FBCCI in its budget proposal demanded for bringing NGOs’ income from microcredit operations under tax net arguing that the provision would ensure just and fairness system in taxation along with an increase of income tax collection.
Bangladesh must sell clean clothes, not dirty ones: The country will have to focus on quality and not quantity if it wants to become an emerging economic power, said German Ambassador Albrecht Conze yesterday. “Bangladesh has enormous capacity to react for the better. If you continue in the vein you will jump on quality. That will be your cutting edge because you still have affordable wages.” The outgoing German ambassador spoke to The Daily Star at a farewell lunch organised in his honour by Bangladesh German Chamber of Commerce and Industry at the Westin in Dhaka. Conze spoke at lengths about the twin disasters of Rana Plaza and Tazreen fire and the lessons learnt from it. “You reacted because you had to react. But more and more leading businesses have understood this was the chance for Bangladesh to move to a higher degree of quality.”
After Rana Plaza, the society has adapted to the new situation, and more and more people have understood, particularly in the private sector, that they have to take up the challenge of improving the quality of factories as a first step, he said.
3 branches barred from disbursing loans: Both sanction and disbursement of fresh loans from three BASIC Bank branches in the capital have been suspended temporally on charges of irregularities and corruption. The branches are Dilkusha, Shantinagar and Gulshan, the central bank officials said. The Bangladesh Bank (BB) Monday imposed restrictions on the branches of the state-run specialised bank to protect depositors' interest. However, loans, sanctioned earlier from this date, can be disbursed by the executive committee of the board with due diligence.
13 firms get nod to take foreign loans: A loan committee yesterday gave a go-ahead to 13 private sector projects to borrow $169.15 million from foreign sources. The loans include $100 million for Airtel Bangladesh, $25 million for Summit Meghnaghat Power and $14 million for Mawna Fashions. The rest of the amount was approved for 10 other companies, Bangladesh Bank said in a statement yesterday. The highest interest rate for the projects is three-month LIBOR+4.75 percent in a year, the banking regulator said. “This type of foreign financing will be helpful to keep the dollar price stable. The balance of payments deficit will decrease and it will create more job opportunity for the country,” BB said. The borrowing approvals came at the 86th meeting of the Board of Investment Scrutiny Committee of the BB at its headquarters in Dhaka.
Mustafa Kamal sells off CMC Kamal shares: Planning minister and ruling Awami League lawmaker AHM Mustafa Kamal on Monday announced that he would sell off his entire shares of the much-talked-about CMC Kamal Textile Mills to Alif Textiles. Kamla’s wife and two daughters, Kashmiri Kamal, Kashfi Kamal and Nafisa Kamal who are sponsors of the company, also announced to sell their majority shares to the same company.Kamal, known as Lotus Kamal, is also the vice-president of the International Cricket Council, and his family members hold 26.14 per cent shares of CMC Kamal while the rest of the shares are held by general investors.
Bangladesh’s stocks close flat: Bangladesh’s stocks witnessed another flat session on Monday with turnover moving up slightly as investors remained cautious ahead of the national budget to be placed in the parliament on June 5. DSEX, the prime index of the Dhaka Stock Exchange (DSE), ended at 4,378.34 points, gaining only 0.09 points after witnessing volatility throughout the session. The other two indices outperformed the benchmark index. The DS30, comprising blue chips gained 2.03 points or 0.12 percent to close at 1,589.40 points. The DSE Shariah Index (DSES) also advanced 4.24 points or 0.43 percent to close at 977.87 points.
BBN/SSR/AD-27May14-10:55 am (BST)