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.
Penal tax likely on fake investment, misinvoicing
The government may impose penal tax at a rate of 50 per cent on the amount involved in misinvoicing and fake investment in the upcoming budget (FY 2020-21). The penal tax in the case of misinvoicing in external trade transactions is aimed at checking money laundering, while the same for fake investments shown in the tax returns is designed to curb tax evasion.
Trade deficit widens amid economic fallout
The economic fallout brought on by the ongoing coronavirus pandemic has had an adverse impact on the country’s balance of payments as both trade gap and deficit in the current account widened remarkably in April. Trade deficit stood at $14.22 billion in the first 10 months of the current fiscal year in contrast to $12.07 billion in the nine-month lead up to March, according to data from the central bank. Between the months of July and April, the trade gap also increased by 1.73 per cent from that of one year ago, when the figure was $13.97 billion.
Government may set export tax at 0.5pc in budget
The government is likely to increase the source tax on export proceeds to 0.5 per cent in the upcoming national budget for the fiscal year 2020-2021 from that of 0.25 per cent in the outgoing FY2020. The National Board of Revenue in October last year slashed the tax for all sectors, including the readymade garment, to 0.25 per cent for FY2020 from 1 per cent following the exporters’ demand for the cut to make the country’s exports competitive on the international market. The reduced rate is set to expire on June 30.
Exports in May around three times higher than in April
Bangladesh’s exports earnings in May declined by 61.57% to $1.46 billion compared to the same period last year due to supply chain disruption caused by the Covid-19 pandemic. However, performance is better in May than the April proceeds of only $520 million this year, against over $3 billion in the same month last year, according to the latest data of the Export Promotion Bureau (EPB).
BD to get WB’s $250m budgetary aid in June
Bangladesh is likely to receive US$250 million budgetary support from the World Bank (WB), as the Washington-based lender might approve the assistance next week, officials said on Monday. The WB board, in its upcoming meeting on June 19, might endorse second instalment of the Development Policy Credit (DPC), amounting to $250 million, for Bangladesh, they said.
3.6 crore people lost jobs during lockdown: BEA
Around 3.6 crore people lost their jobs in the 66-day countrywide lockdown declared by the government to contain the coronavirus pandemic, said Bangladesh Economic Association president Abul Barakat on Monday. Barakat made the statement while placing an alternative budget proposal at a press conference held online. He said that around 6.1 crore people were currently working on the country’s labour market.
Flush with cash, banks ready to fund the govt leaving private sector dry
The banking sector has never witnessed so much supply of money in such a short time. In April, the banks’ excess liquidity surged by Tk24,000 crore and reached a whopping Tk1,13,000 crore. The Bangladesh Bank also–for the first time in its history–created new money worth Tk70,794 crore within a short time after the outbreak of Covid-19 in March to provide liquidity support to the banks.
Stock brokers in dire need of incentives
Stock market investors and intermediaries are now in real peril as the index of the country’s bourses have sunk along with turnover in the past few months of the coronavirus pandemic. The solution they say are sustenance incentives in the upcoming budget of FY 2020-21.