Continue 0.5pc source tax for 5yrs
Garment exporters yesterday demanded the continuation of the existing 0.5 per cent source tax for the next five years. Apparel makers usually demand for source tax to be reduced to 0.25 per cent both before and after the budget is announced every year.But this year they came up with the call to keep the tax the same for some time as Finance Minister AHM Mustafa Kamal in his budget speech on June 3 did not clearly mention any rate of source tax.Hassan was speaking at a press conference at the BGMEA’s office in Uttara, Dhaka to express the association’s budget reaction. The BGMEA chief also demanded 10 per cent cash incentive on export receipts of garments made from non-cotton fibre. Globally, the fashion industry has been shifting to manmade fibre thanks to their environment-friendliness, functionality and durability.Manmade fibre garments occupies 78 per cent of the global business while cotton fibre holds the remaining 22 per cent. However, some 74.14 per cent of Bangladesh’s garment export earnings come from cotton made items. So, Bangladesh is lagging behind in the mainstream business of manmade fibre garments, which is worth a few hundred billion dollars globally.Of the 100 global Leadership in Energy and Environment Design (LEED) certified garment factories, about 39 are in Bangladesh. Bangladesh has 143 LEED certified buildings and 40 of them are platinum rated factories. Ten years ago, the amount of apparel shipments to new markets stood at $700 million, which was 6.88 per cent of Bangladesh’s total apparel shipments per year.During the 2008-09 fiscal year, the government gave four per cent incentives on export to new markets. Bangladesh considers all the markets as new ones except the EU, US and Canada.
City Bank wins best bank award from FinanceAsia
City Bank has been named as ‘Best bank in Bangladesh 2021’ by the renowned international publication – FinanceAsia. The Hong Kong-based journal awarded City Bank for the seventh time starting in 2012 in recognition of its consistent good performance andinnovations in banking services. FinanceAsia mentioned the financial growth of City Bank during pandemic-hit 2020 when most of the financial institutions were struggling to survive. The financial inclusion of City Bank through agent banking and the partnership with bKash to introduce ease loan on mobile platform also attracted this international body.The award reflects City Bank’s consistency, innovation, and strong competence in catering to the needs of customers and investors in the fast-evolving Bangladesh market, according to FinanceAsia.
Marico to invest Tk 227cr in new unit
Marico Bangladesh is set to invest Tk 227 crore to establish a new manufacturing unit at the Bangabandhu Sheikh MujibShilpa Nagar (BSMSN) in Mirsarai, Chattogram as a part of its efforts to catch a greater share of the growing market for fast-moving consumer goods. A land lease agreement between Marico Bangladesh and the Bangladesh Economic Zones Authority (Beza) to hand over a 10-acre plot for the project will be finalised today.Marico manufactures a range of baby care, skin care and male grooming products under brands such as Parachute Just for Baby, Parachute Skinpure and Studio X in addition to its heritage brands Parachute Coconut Oil, Parachute Advanced and Saffola Active Edible Oil.Marico began its journey in the country around 20 years ago with 36 brands across 10 categories under the Parachute Advanced, Saffola, Nihar, Parachute Just for Baby, Parachute Skinpure, Parachute Naturale, Livon and Studio X franchises.Even despite the Covid-19 pandemic, the company enjoyed good business during the last financial year as its revenue grew by 15.4 per cent and profitability increased 17.5 per cent.With Marico showing resilience amid the second wave of infections and the government’s prudent measures in the form of movement restrictions and vaccination efforts, the company is hopeful of continuing to deliver growth in profits for its shareholders in fiscal 2021-22.
FBCCI seeks stimulus for small businesses
The country’s apex trade promoter FBCCI has sought fresh stimulus for small businesses as, it believes, they are worst-affected by the coronavirus pandemic. The government earlier announced a package for the CMSMEs amounting to Tk 200 billion, but over 72 per cent of the package has so far been disbursed. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said this at a post-budget press briefing held at its Motijheel office on Saturday.The FBCCI chief said the government imposed advance tax up to 20 per cent in the budget, adding that business activities would thus suffer serious setbacks.The FBCCI said educational institutions have been the biggest casualty as they remained closed since the beginning of the pandemic. But they have to pay 15-per cent income tax.