Govt to form taskforce to cut cost of business

The government will form a taskforce to ease doing business and facilitate trade through addressing problems businesses raised Wednesday. Commerce Minister Tofail Ahmed announced the decision at a government-business consultation aimed at making ways for taking the economy further forward. “Every ministry will constitute taskforce to ease doing business and for trade facilitation across the country. Different trade associations will be included in the taskforce. Activities to ease doing business in the country will continue throughout the year,” the commerce minister told reporters after the meeting.

Source: http://www.thefinancialexpress-bd.com/2017/04/20/67478/Govt-to-form-taskforce-to-cut-cost-of-business

Power Division seeks BDT 260.0 billion in next ADP

The Power Division has sought a development allocation of BDD 259.6 billion for the next fiscal year (FY), which is 45.0% higher than that of the current FY. It will be the highest demand among other sectors under the Annual Development Programme (ADP) for the FY 2017-18, officials said Wednesday. In the current ADP, the division received BDT 179.1 billion in allocation for implementing the development projects. Out of total amount, the division sought BDT 143.2 billion from the internal resources and BDT 116.4 billion from the external resources as project aid.

Source: http://print.thefinancialexpress-bd.com/2017/04/20/170459

ICT leaders want VAT withdrawal on internet

Leaders from ICT sectors at a pre-budget discussion in Dhaka on Wednesday demanded that the National Board of Revenue withdraw value-added tax on internet use. The Bangladesh Association of Software and Information Services also demanded a 40.0% incentive on export of software and information technology services to achieve the target of export earnings at USD 5.0 billion by 2021 from the sector. The BASIS said that currently there was no such incentive for the sector though many sectors including textile was enjoying cash incentive on export earnings. The association also demanded withdrawal of 15.0% VAT on internet bills to encourage use of the internet by common people in a bid to build a digital society. It also sought removal of customs duty on import of internet equipments including modem, Ethernet interface card, computer network switch and server and imposition of higher duty on complete digital devices which are produced in the country. The association also requested the revenue board to include 25 services including IT infrastructure planning, development and maintenance, server system management, hardware maintenance, cyber security services and database management in the definition of IT-enabled services so that the entrepreneurs of services can enjoy income tax exemption.

Source:
http://www.newagebd.net/article/13848/ict-leaders-want-vat-withdrawal-on-internet
http://www.dhakatribune.com/business/2017/04/19/demand-vat-free-internet-also-comes-ict-investors/

BIA demands cut in insurance companies’ corporate tax to 25.0% from existing 40.0%

Bangladesh Insurance Association on Wednesday proposed that the government in coming budget for financial year 2017-18 should reduce corporate tax for the insurance companies to 25.0% instead of existing 40.0%. Besides, the association also demanded for scrapping the 5% tax provision on insurance policy benefits of policyholders, 15.0% value added tax and 5.0% source tax on agents’ commission, and 40.0% tax on insurance company’s excess operating expenses. The insurance association came up with the proposal at a pre-budget press briefing held at its office in Dhaka. Kabir said that the sales of life insurance policies have been on the decline since 2014 when the government imposed 5.0% gain tax on policy benefits as policyholders prefer depositing funds into banks rather than purchasing life insurance policy.

Source:
http://www.newagebd.net/article/13850/bia-demands-cut-in-insurance-cos-corporate-tax-to-25pc
http://www.thedailystar.net/business/insurance-weighed-down-lack-awareness-taxes-1393480

BRVIDA seeks tax rebate on hybrid cars import

The Bangladesh Reconditioned Vehicle Importers and Dealers Association (BARVIDA) on Wednesday sought tax rebates and incentives for imported hybrid cars. A hybrid vehicle uses two or more distinct types of power, such as internal combustion engine plus electric motor. The association leaders said the price of reconditioned hybrid cars was 35 to 40% more than the fossil cars where they proposed providing 35% subsidies to supply such fuel-efficient and environment-friendly cars with almost similar price of the fossil cars. The association leaders also made some proposals including re-assessment of depreciation rates of fossil fuel cars, amendment to counting rating system of the cars to provide depreciation and changes in slab-wise tax imposition. They made the proposals at a pre-budget discussion with the National Board Revenue (NBR) at the NBR auditorium in the city.

Source: http://print.thefinancialexpress-bd.com/2017/04/20/170408

Summit keen on more power, port projects

SUMMIT Group eyes more power and port projects after the successful completion of most of its ventures in Bangladesh, the chairman of the company said. The group has taken a $2-billion investment plan in order to set up a terminal for liquefied natural gas, two LNG-based power plants and ports, said Muhammed Aziz Khan. “We have kept our promises by implementing all of our projects on time,” he said. Summit Group is the largest private sector power producer in Bangladesh, generating over 1,500MW of electricity. Recently, it completed the 115MW Barisal power plant and 55MW Narayanganj plant, while the 115MW plant in Gazipur and a floating liquefied natural gas terminal are under implementation.

Source: http://www.thedailystar.net/business/summit-keen-more-power-port-projects-1393459

Esquire Knit to spend Tk 576cr on expansion

Esquire Knit Composite, a strategic business unit of Esquire Group, plans to invest Tk 576 crore in business expansion to meet the growing demand from international retailers. Of the amount, Tk 340 crore will come from local and foreign loans, Tk 86 crore from the company’s own funds and the rest Tk 150 crore from the capital market, a top official said. “We need to expand our business to meet the increasing demands from our existing clients,” Ehsanul Habib, managing director of Esquire Knit, said at a roadshow in Dhaka on Tuesday organised as part of its initial public offering (IPO) plan. C&A, Zara, Esprit, Only, Tee Jays, Fynch-Hatton and Hunkemoller are some of the international buyers of Esquire Knit. With the funds, the export-oriented knit garments factory will set up new units at Bhaluka in Mymensingh and expand the existing unit at Sonargaon in Narayanganj, said Habib. Esquire Knit will use book building method to raise Tk 150 crore from the capital market. Of the proceeds, Tk 100.42 crore will be used for constructing buildings, Tk 43.14 crore for buying dyeing and washing machinery, and the rest Tk 6.44 crore for bearing IPO expenses.

Source: http://www.thedailystar.net/business/esquire-knit-spend-tk-576cr-expansion-1393501

GP on a roll

When Grameenphone started its journey as a village phone programme in 1997, mobile phone was still a luxury in Bangladesh. But in the last two decades it has not only grown keeping pace with the economy but also taken modern but affordable telecom services to the doorstep of the people. It took only a year or two to become the leading and largest telecom service provider in Bangladesh – a feat it has successfully retained years after years. It is one of the largest taxpayers in the country too. Today, GP has nearly 6 crore subscribers, nearly half of the total customer base in the country. It generates 22.25 crore calls daily. Over 2 crore people use internet on its network.

Source: http://www.thedailystar.net/business/gp-roll-1393513

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