TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK


TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Rate last updated: 02/01/2014 11:15:04 AM

Daily Business News Flash May 18, 2023

Tougher value addition rules for an RMG segment mulled

The government has planned to implement stricter regulations regarding the eligibility criteria for cash incentives provided to garment exporters who rely on materials supplied by their buyers. In another move, the duty concession on the import of materials for luxury hotels is likely to be withdrawn in the coming budget. Apparel manufacturers who receive fabrics and other materials from buyers and export finished products after cutting, making, and trimming (CMT), will now be subject to a revised calculation of their value addition. To qualify for cash incentives, the value addition must amount to at least 20%. Currently, exporters in this sector determine the value addition by subtracting the cost of production, including purchases from local markets and profit margins, from the export proceeds except for freight costs. Bangladeshi exporters buy various items such as cartons, poly, printing and labels from local markets. Exporters get incentives only when they add at least 20% value including labour wages and profits. According to exporters, 15-20% of the total exports of the readymade garment sector are on CMT basis. In the fiscal 2021-22, readymade garments exports were worth $42.6 billion. In the first 10 months of the current financial year, Bangladesh exported garments worth $38.5 billion.

Source: https://www.tbsnews.net/economy/rmg/garment-sector-see-tighter-cash-incentive-rule-luxury-hotels-will-lose-duty-concession

Owning flat, land to get costlier as gain tax increase planned

Owning property may become costlier in the next fiscal year as the government moves to increase the gain tax, while benefits may be given to some specific electronics items to encourage local manufacturing. Also, local manufacturers of refrigerators, freezers, and their compressors are likely to continue benefiting from the current duty rebate for an additional year. Currently, the total gain taxes and fees on buying flats and plots amount to 10-12.5%, which may increase by 1-2 percentage points in the upcoming national budget. According to sources in the National Board of Revenue (NBR), the revenue officials involved in the budget formation process headed by the finance minister on 14 May presented this plan to the prime minister to incorporate in the finance bill. However, real estate businessmen say there is currently a downtrend in the housing sector due to the economic slowdown. If the tax is increased again, sales in this sector will further decrease, which will have a negative impact on the economy. Currently, flat and plot buyers pay a gain tax of 4%, a stamp fee of 1.5%, a registration fee of 1%, a local government fee of 1.5%, and a value-added tax of 2-4.5%.

Source: https://www.tbsnews.net/economy/budget/owning-flat-land-get-costlier-gain-tax-increase-planned-632438

Nagad Finance PLC gets new NBFI license

The Bangladesh Bank (BB) on Wednesday issued a notification granting license to ‘Nagad Finance PLC’ to operate as a new non-bank financial institution (NBFI). Earlier, the board of directors of BB gave final approval to Nagad Finance at a board meeting. Now Nagad Finance has no obstacles in running its business operations.

Source: https://www.tbsnews.net/economy/nagad-finance-plc-gets-new-nbfi-license-633602

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DJIA$ 33,420.77
↑ 408.63↑ 1.24 %
FTSE100$ 7,723.23↓ 27.85↓ 0.36 %
Nikkei 225$ 30,532.03↑ 438.44↑ 1.46 %

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$ 72.57↓ 0.26↓ 0.36 %
Crude Oil (Brent)$ 76.68↓ 0.28↓ 0.36 %
Gold Spot$ 1,980.01↓ 1.83↓ 0.09 %

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 107.2600
BDT 107.9700

*World Commodities & Local and Global Stock Indices data are taken from bloomberg.com<

* Exchange Rates are taken from BB website, as on latest update.<




Dear Valued Patrons,

At the very onset, let me express my heartiest gratitude for allowing us to serve you and I also wanted to reach out to you directly with an assurance that Dhaka Bank is fully equipped to support you during this difficult time.

Last couple of weeks ago we all were living in a peaceful condition, performing our daily tasks freely and perfectly. Entire economy and business environment was also in a good shape, until COVID-19 put a forceful stoppage to the overall life style and economy of the world. We all know that social distancing and cleanliness are the keys to prevent this pandemic. Hence, we urge your conscious effort to limiting public interaction and suspending wherever possible.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

Our state of the art Mobile App, Dhaka Bank GO (Click https://bit.ly/2WVfieu) and Internet Banking - Dhaka Bank Direct gives you the freedom of banking online anytime from anywhere. You can check the balance and transfer money to any designated Banks including any Dhaka Bank or bKash Account, make utility bill payments and mobile top-up through our Mobile App and Internet Banking Services. Our ATMs are also running efficiently with availability of sufficient cash for your convenience where you can make cash withdrawals whenever the need arises. Mentionable, the withdrawal of cash from any ATMs within Bangladesh with Dhaka Bank Debit Cards are absolutely free of charges up till April 30, 2020 (Dhaka Bank will bear the cost). Our corporate customers can also use our completely safe and secured online platform Dhaka Bank C-Solution for Payments, Inter Bank Fund Transfers, etc.

Moreover, to fulfill your urgent requirement, we have a limited no. of branches up and running by ensuring all kinds of precautionary and safety measures for you.

In case of extreme emergency and facing difficulties in conducting banking transactions, please let us know through our 24/7 Contact Center number 16474 (or, dial +8809678016474 for ISD/Overseas Calls). We are always with you to combat your difficulties.

As you know we are going through a critical phase and the situation is novel to all of us. We are getting lot of new information from various sources everyday about COVID-19 which will be shared at www.dhakabankltd.com.

Thank you for your trust and continued support to us. I firmly believe that jointly we will be able to combat this situation and win against all the odds.

Please stay home, stay safe and take care of yourself and family.

Best regards,

Emranul Huq
Managing Director & CEO
Dhaka Bank Limited