Bangladesh GDP grows by 7.1% in FY16, says Asian Development Bank

Bangladesh economy grew by 7.1%, 0.05 percentage points higher than the government’s estimation, in the last fiscal year 2015-16 on sustained consumption, increased public investment, and revived exports, according to the Asian Development Bank The government estimated that the country’s GDP grew by 7.05% in the last year. The Manila-Based multilateral lending agency on Tuesday revised the GDP growth for the year for Bangladesh up from its previous projection of 6.7% made in the Asian Development Outlook released in last March. The ADB released the ADO Update titled ‘meeting the low-carbon growth challenge’ on the day. ‘In Bangladesh, estimated growth in the FY 2016 exceeded the forecasts because robust performance in manufacturing and services more than compensated for unexpected weakness in agriculture,’ said that report. Increased consumption and public investment contributed to the better performance in Bangladesh in 2016, it said. Inflation was lower than projected, while larger exports and modest imports kept the current account in a larger surplus, it added. The ADB in its ADO Update, however, retained its 6.9% growth projection for the current fiscal year for Bangladesh saying that a slower growth forecast for the year is retained as agriculture growth is expected to be moderate.

Source: http://newagebd.net/253860/bangladesh-gdp-grows-7-1pc-fy16-says-adb/

Fuel oil import goes up in August to feed power plants

Bangladesh imported about 300,000 metric tons (mts) of diesel and jet fuel in August at lower premium rate from three international suppliers, up 11.11% from July imports, said officials. State-run Bangladesh Petroleum Corporation (BPC) imported the refined petroleum products from the Kuwait Petroleum Corporation (KPC), the Emirates National Oil Company (ENOC) and the Unipec Singapore, said a senior BPC official. Of the imported petroleum products, around 150,000 mts are of 0.05% sulfur diesel, 60,000 mts of 0.20% sulfur diesel and 90,000 mts of jet fuel, he said. The BPC took delivery of the fuel through seven cargoes of diesel and three cargoes of jet fuel, having 30,000 mt capacity each, in August, which was one gasoil cargo more than July’s delivery. Previously, the BPC had imported 270,000 mts of diesel and jet fuel in July, up from 210,000 mts of June imports, he said. The BPC is the sole designated importer of diesel and jet fuel for Bangladesh. Bangladesh consumed more gasoil in August mainly to keep running some gasoil-fired power plants operational in extra hours, said the BPC official.

Source: http://print.thefinancialexpress-bd.com/2016/09/28/152758

FBCCI seeks permanent restoration of package VAT system in law

The Federation of Bangladesh Chambers of Commerce and Industry has again placed a set of demands related to value-added tax, customs duty and income tax to finance minister for consideration. The apex trade body claimed that regular trade and business activities of small and medium entrepreneurs and traders were being affected as the National Board of Revenue did not consider the major and sensitive budgetary proposals of the trade body during the budget for the current fiscal year passed in parliament in June. The demands include inclusion of package VAT system and previous rate permanently in the new VAT and Supplementary Duty Act with annual increase and fixing the limit of annual turnover between BDT 3.6 million and BDT 50.0 million for small and medium enterprises and services sector for imposing 3.0% turnover tax. The revenue board in the budget for the current FY 2016-17 scrapped the turnover facility for manufacturers in Dhaka and Chittagong metropolitan areas and fixed package VAT at BDT 28,000 for businesses having annual turnover below BDT 80 lakh. Now, the package VAT and turnover facility has become ineffective even for shopkeepers in the metropolitan areas because of the changes, the trade body claimed.

Source: http://newagebd.net/253859/fbcci-seeks-permanent-restoration-package-vat-system-law/

ICT market grows 23 times in seven years

Bangladesh’s booming Information and Communication Technology (ICT) market has marked a 23 times growth over the period of last seven years, reports state-owned BSS. In 2008, the total size of the market was merely USD 26.0 million, but within a span of seven years a massive growth in the industry has taken place setting its appearance on the global stage hitting an unthinkable figure of USD 600.0 million. A manifold rise in the budgetary allocation has also been made that resulted in further boost. This year, about BDT 16 billion has been allocated in the national budget, up from BDT 2 billion seven years back. The people of the country have been enjoying the internet bandwidth at a price which is very low. Now, it costs Taka 400 to subscribe each megabyte per second (Mbps) of bandwidth, while, in 2008, one had to spend Taka 27,000 to avail of the same facility.

Source:
http://print.thefinancialexpress-bd.com/2016/09/28/152735
http://www.daily-sun.com/post/169523/ICT-export-to-cross-1b-mark-by-2018:-Palak

Tax on workers’ profit fund to be lifted

The government has decided to withdraw the tax imposed on the Workers’ Profit Participation Fund (WPPF) in response to an urge from the Foreign Investors’ Chamber of Commerce and Industry (FICCI). FICCI feared labor unrest due to imposition of the tax on the WPPF. A Finance Division official said finance secretary has signed the summary paper of the tax withdrawal from the WPPF. On his return from abroad, Finance Minister will sign the summary. FICCI President Rupali Chowdhury in last February urged the government to withdraw the tax imposed on the WPPF.

Source: http://www.dhakatribune.com/business/2016/09/28/tax-workers-profit-fund-lifted/

BD earned $547m by exporting fish in FY16

Bangladesh earned $547.28 million in the previous fiscal by exporting 75,338 tonnes of fish and fish products, said Commerce Minister Tofail Ahmed on Tuesday. The minister said this in reply to a written question of treasury bench member Nurunnabi Chowdhury in the parliament, reports BSS. The country has earned $459 million by exporting 40,726 tonnes of frozen shrimp in the 2015-2016 fiscal. Tofail said different steps have been taken in the last five years to overcome compliance risks of exporting shrimp.

Source:
http://www.thefinancialexpress-bd.com/2016/09/27/47393/BD-earned-$547m-by-exporting-fish-in-FY16:-Tofail

KDS Accessories eyes Tk 100cr from new unit

KDS Accessories, a unit of Chittagong-based KDS Group, aims to earn an additional Tk 100 crore in sales revenue a year, as it started commercial production at its new packaging unit in Gazipur last week. The company will reach the revenue target, if the new packaging line can utilise its full capacity and sell the produces, the company said in a statement on the website of Dhaka Stock Exchange yesterday.The company’s revenue in 2015 was Tk 169.08 crore, according to its latest annual report. Additional production capacity at the new packaging unit, which is third for the company, will be increased by 45,000 pieces of cartons a day, KDS Accessories said. The previous two units are also engaged in manufacturing corrugated boxes, cartons and other packaging materials. These two units can produce 2.24 crore pieces of cartons a year. The third unit has been set up with investments of Tk 28 crore, of which Tk 15 crore came from initial public offering and the rest from equity and bank loans.

Source: http://www.thedailystar.net/business/kds-accessories-eyes-tk-100cr-new-unit-1290646

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