Global economic rebound to drive up BD goods’ demand

Hopes underpin new budget outlook as the government eyes a boost in Bangladeshi goods on the international market in the upcoming fiscal year on gradual global economic rebound. Also, as the economic conditions in major economies like Euro Zone and the United States showing potential of becoming well compared to the previous year, the government expects a rebound in both import and export in the next year. However, finance officials involved in the budget preparation do not discount downside risks stemming from the high policy interest rates in the large economies, depreciation of currencies, and balance-of-payments pressures on macroeconomic stability of many countries. Bangladesh’s economy is also undergoing such volatile situation as may — like many other countries — generate further uncertainty as fallout from geopolitical conflicts, commodity-price volatility, and impacts of climate change, the finance officials predict. The export growth may increase 4.0 per cent in the rising and developing economies, and Bangladesh may be able to grab a slice of the bigger trade cake. The targets of the UN-designated sustainable development goals (SDGs) have been inlaid in the 8th Five Year Plan and in the second Perspective Plan 2021-2041.

Source: https://today.thefinancialexpress.com.bd/first-page/global-economic-rebound-to-drive-up-bd-goods-demand-1717352944

Bangladesh’s trade with Saarc countries falls in FY23

According to a Bangladesh Bank report published yesterday, total export earnings from Saarc countries decreased from $1.93 billion in FY22 to $1.91 billion in FY23, indicating an almost 1% decrease. Saarc countries include Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka.

In FY23, Saarc countries accounted for 3.44% of Bangladesh’s total exports, with Europe and the United States being the major destinations, according to central bank data. The total import payments in these countries decreased from $14.93 billion in FY22 to $10.34 billion in FY23, reflecting a decline of 31% during the period. Due to various restrictions imposed by the central bank to tackle the dollar shortage, overall imports declined by 15.76%. This means the imports from Saarc countries fall at a faster pace than the overall performance.

Source: https://www.tbsnews.net/economy/bangladeshs-trade-saarc-countries-falls-fy23-867061

 VAT likely to go up on 13 items – from fruit juice to LED bulbs to home appliances

The government plans to increase the value-added tax (VAT) on more than 13 goods and services, including LED bulbs and tube lights, various juices, mango bars, rolling paper, security services, auction services, refrigerators, and air conditioners. Finance ministry officials said most of these items may face a 15% VAT at the manufacturing stage. Additionally, the VAT exemption for air conditioner manufacturing is likely to be phased out this fiscal year ending on 30 June, potentially subjecting it to a new 5% VAT in FY25. For refrigerator manufacturing, the VAT rate is expected to increase from the existing 5% to 10%. Conversely, increasing the VAT rate from 5% to 15% on mango bars and juice, tamarind juice, guava juice, pineapple juice, and mango bar manufacturing could limit access to nutritious products for people. In FY21, the government exempted about Tk3.18 lakh crore in taxes, including Tk1.5 lakh crore from VAT and Tk1.25 lakh crore from income tax. These exemptions are categorised as tax expenditures.

Source: https://www.tbsnews.net/economy/vat-likely-go-13-items-fruit-juice-led-bulbs-home-appliances-867006

TK Group expands into shipping, plans to carry own edible oil imports

TK Group, a major player in the country’s consumer goods and industrial sectors, has initiated massive investments with the goal of transporting its own edible oil imports by using its own vessels. As part of this initiative, Samuda Shipping Limited, a subsidiary of the Chattogram-based conglomerate, purchased a vessel earlier this year, according to the company. Procured at a cost of Tk157 crore, the ship named MT Samuda has a capacity of 24,025 tonnes of oil and employs a total of 40 people, including 22 sailors. According to TK Group data, it imports eight lakh tonnes of edible oil annually. Shipping charges are around $40 per tonne. As a result, TK Group spends $32 million annually on the transportation of edible oil.

Source: https://www.tbsnews.net/economy/tk-group-expands-shipping-plans-carry-own-edible-oil-imports-866266