Government plans to increase non-tax revenue

The government plans to rationalise its administrative fees and increase non-tax revenue (NTR) collection manifold so that overall revenue receipts will be scaled up to finance public expenditure. As such, an initiative has been taken to set up an online database of all NTR items, detailing the fees, other charges and their date of imposition. Bangladesh’s revenue collection is lower than its potential, hovering below the level of Nepal and India, which have similar economic development, according to the finance ministry. Low revenue collection may make it increasingly difficult for the government to finance critical public expenditure in infrastructure, health, education, water resource management and social protection.

Source: https://www.thedailystar.net/business/economy/news/govt-plans-increase-non-tax-revenue-3631711

Blow for private economic zones, hi-tech parks as tax benefits go

Investors and developers of private economic zones (EZs) and hi-tech parks are going to lose the 10-year-long tax waiver on their incomes from the next fiscal year as the government phases out exemptions. Bangladesh has embarked on the process of ending tax exemptions gradually in all sectors with a view to lifting the country’s low tax-to-GDP ratio and aligning them with global rates since the country will not be able to offer generous tax benefits and subsidies in the current form after it becomes a developing nation in 2026. While unveiling the budget for the upcoming fiscal year on Thursday, Finance Minister Abul Hassan Mahmood Ali gave the direction on cutting exemptions. As such, the government is going to provide the waiver to state-run hi-tech parks and economic zones alone. Bangladesh has one of the lowest revenue-to-GDP ratios in the world, and the International Monetary Fund, as part of its $4.7 billion loan, has given a condition to the government to increase tax collections by 0.5 percent of the GDP. As part of the government’s efforts to spur industrialisation, augment export earnings, and create jobs through the setting up of 100 economic zones across the country, the Bangladesh Economic Zones Authority (Beza) has already granted approvals to establish 29 private economic zones. Of them, eight are already operational.

Source: https://www.thedailystar.net/business/economy/news/blow-private-economic-zones-hi-tech-parks-tax-benefits-go-3631701

Bangladesh should go for recycled garments to boost exports

Bangladesh should soon go for producing recycled garment products that meet global environmental safety standards to increase its exports to the European Union (EU). Changes in trade patterns often bring major shifts to a country’s economic structure, technological advancement, government policies and emerging trade theories or agreements. However, Bangladesh needs to take adequate preparation to this end.These comments came at a discussion on the impact of EU circular textiles policies on its trading partners, organised by the Business Initiative Leading Development (BUILD) at its office in Dhaka. In fiscal 2022-23, apparel exports from Bangladesh to the EU amounted to $28.6 billion. In fiscal 2023-24, the amount was $25.44 billion, indicating a year-on-year decline of about 6.07 percent. The EU and UK account for more than 60 percent of Bangladesh’s garment exports while apparel products constitute more than 93 percent of the total shipments.

Source: https://www.thedailystar.net/business/news/go-recycled-garments-boost-exports-3631666

Elevate Pay secures $5m to support freelancers

Elevate Pay, a financial technology (fintech) player based in London and Dubai, secured $5 million for expanding the market further into South Asia including Bangladesh, said company source. This move is expected to provide financial solution to the freelancers and remote workers. There are around one million freelancers in Bangladesh and the country is home to a large number of remote talents, according to independent data. Elevate Pay offers the most simplified way of receiving USD payments from the US and international employers as well as from platforms like Upwork, Fiverr, Paypal, Deel, and Toptal. Elevate Pay has so far raised $10 million in equity and debt from different investors including Y Combinator, Goodwater, Global Founders Capital and VSQ. Over 150,000 people have already signed up with this fintech since its inception.

Source: https://thefinancialexpress.com.bd/stock/bangladesh/elevate-pay-secures-5m-to-support-freelancers

Patenga Container Terminal of Chattogram Port begins operation

The much-anticipated Patenga Container Terminal (PCT) of Chattogram Port commenced operations on Monday, marking a significant milestone for the port and the country. A container vessel, the Singapore-flagged ‘MAERSK DAVAO,’ anchored at the terminal this morning, initiating regular handling activities. Authorities anticipate the terminal will handle approximately 500,000 Twenty-ft Equivalent Units (TEUs) annually. PCT is the first terminal in Chattogram Port’s history to be operated by a foreign company, heralding a new era of foreign investment and operational models. This transformation has positioned Chattogram as a landlord port, a significant upgrade for Bangladesh’s maritime infrastructure. The PCT was built on 32 acres of land near Chattogram Drydock Limited to Boat Club, with the foundation stone laid on September 8, 2017. The project, supervised by the 34 Engineer Construction Brigade of the Army, commenced construction in 2018, involving a total cost of Tk 12.30 billion. With the new terminal, vessels will no longer need to wait at the outer anchorage for extended periods, as the Patenga Container Terminal can accommodate four vessels at once across its jetties. This increased capacity is expected to alleviate congestion and streamline operations at Chattogram Port.

Source: https://thefinancialexpress.com.bd/trade/patenga-container-terminal-of-ctg-port-operational-from-today