Income tax collection surges 16% in H1 FY24
The government’s income tax collection during the first six months (July-December) of the current fiscal year has exhibited a notable increase of 15.82% compared to the corresponding period in the previous fiscal year. According to sources within the National Board of Revenue (NBR), the collected income tax during this period amounted to Tk51,824 crore, surpassing the Tk44,742 crore recorded in the same duration of the preceding financial year. Despite the positive growth observed in tax collection, it is worth noting that tax collection for the first half of FY24 fell short of the set target by approximately Tk8,500 crore. The target for this period was Tk60,417 crore. The NBR has a target of collecting Tk1,54,800 crore from income tax and travel tax in the ongoing fiscal year. To meet the target, the income tax collection in the second half of FY24 has to be twice the amount collected so far. NBR sources said as of 18 January, some 18.82 lakh tax returns had been submitted, reflecting an increase of 4 lakh compared to the corresponding period last year.
Call money rate hits 5-yr high, ranges 8.0-10pc
The interbank call money rate hit its new high at 9.43 per cent on Sunday, indicating a persistent liquidity problem on the money market. The highest bid for the overnight borrowing rate on the day stood at 10 per cent and the lowest at 8.0 per cent, averaging 9.43 per cent. The day’s total transaction stood at Tk 34.18 billion in 72 deals. The sharp rise in the call-money rate indicates a higher cost of emergency funds for some banks, notwithstanding the prevalence of some liquidity surplus in the overall system. Banks extend overnight credit to one another for a day to fill the asset-liability mismatch or to meet the sudden demand for funds, comply with the statutory CRR and SLR requirements. Managing director and CEO of Dhaka Bank Emranul Huq told the FE that they have raised the deposit rates but there is hardly any expected result. “To attract liquidity, we have raised interest rates on FDRs, even around 10 per cent, but we are not getting expected responses from the depositors.” He thought it’s high time to identify the reason behind the liquidity shortage in the market. “Where has the liquidity gone?” he questioned. “We need to identify the reasons and take measures accordingly as such a liquidity crisis will pose a threat to the economy,” Mr. Huq said.
Textile giant Badsha Group gets $86m foreign loan, sets ambitious $1.3b turnover target
While the readymade garment industry in the country is facing challenges amid the ongoing dollar crisis, Badsha Group of Industries, a prominent textile manufacturer, aims to achieve an annual turnover exceeding $1.3 billion by FY26, following the approval of around $86.83 million loan from three international financial institutions. Of the loan amount, $40 million has been approved by the International Finance Corporation (IFC), €25 million (approximately $27.29 million) by the Development Bank of Austria (OeEB), and €17.9 million (around $19.54 million) by the German Export Credit Agency (ECA) LBBW. In the fiscal year 2023, Bangladesh imported 9.24 lakh tonnes of yarn valued at Tk3,498.36 crore, with the majority consisting of cotton yarn.