Tax cuts to cheer up apparel exporters
The government is going to cut withholding tax and corporate tax for garment exporters in what can be viewed as yet another pullback by the revenue authority from its intent to collect higher tax from the sector. Last fiscal year, the sector earned $30.61 billion, which is 83.5 percent of the total export receipts for the year. The corporate tax rate is likely to be reduced to 12 percent from 15 percent. And for those manufacturing clothes in green buildings, the corporate tax rate is likely to be 10 percent, as in the previous fiscal year. In fiscal 2015-16, the tax authority logged in Tk 1,484 crore as source tax mainly from garment shipments. The NBR got the highest amount of source tax on exports in fiscal 2013-14, when Tk 2,080 crore was collected, according to its annual report.
BB sounds cyber alarm
The Bangladesh Bank yesterday warned banks to heighten measures to repel cyber attacks after a multinational hacking ring made off with Rs 94.4 crore from India’s Cosmos Bank last week. The co-operative bank said unidentified hackers stole customer information through a malware attack on its automated teller machine server, withdrawing Rs 80.5 crore in 14,849 transactions in just over two hours on August 11, mainly overseas. Then on August 13, the hackers transferred Rs 13.9 crore to a Hong Kong-based company’s account by issuing three unauthorized transactions over the SWIFT global payments network, the bank said in a police complaint. Earlier on February 2016, customers of three local banks — Eastern, City and United Commercial — became victims of an ATM scam. Skimmers withdrew money by forging credit and debit card data. In the same year, cyber criminals stole $101 million from the central bank’s accounts with the Federal Reserve Bank of New York.
Most MFs declare lower dividends
Majority of the mutual funds (MFs) declared lower dividends for their unit holders for the fiscal year 2017-18 due to the bearish trend in the secondary market. The trustee committees of 32 MFs, out of 37, have so far declared dividends. Of them, 17 announced lower dividends for the FY 2017-18 compared to the previous FY while eight higher, six similar and one zero dividend. Of the 37 closed-end funds on the premier bourse, 31 were trading below their face values at present, according to data from the Dhaka Stock Exchange (DSE). The market was comparatively stable till June 30, 2017. Later, the market exhibited instability and subsequently the EPU of MFs declined for the year ended on June 30, 2018. Between July 1 and June 28, the core index of the DSE fell by 4.44 per cent or 251 points, ending the fiscal year at 5,405. The daily average turnover, another important gauge, stood at Tk 6.46 billion in the last fiscal year, down 14.43 per cent from the previous fiscal.
Consumers to pay addl Tk 60b
The country’s mobile phone users will have to pay an additional Tk 60 billion (6,000 crore) due to the recent hike in voice call rate, said speakers at a meeting on Saturday. The call rate was raised to Tk 0.45 per minute from Tk 0.25 just to serve the interest of the mobile phone operators. The BTRC should take the consumers’ interest into account because such a decision will affect them. The government had announced to withdraw 10 per cent VAT on internet use, which was imposed in the current budget, the decision has not come into effect yet.Central leader of the Bangladesh Samajtantik Dal Rajukajjaman Ratan said mobile phone users will have to pay an additional amount of Tk 60 billion due to this rise in call rate. The speakers demanded immediate scrapping of the BTRC decision.
21 BD companies to take part in Paris expo
A total of 21 Bangladeshi companies, including apparel and leather units, will participate in a four-day fair in Paris beginning on September 17. The Leather World Paris will feature for the first time in the Texworld/Apparel Sourcing Paris this year. The Texworld/Apparel Sourcing Paris is one of the best options for Bangladesh’s ready-made garment (RMG) sector to improve their market share not just in France but also all over Europe. Of the 21 participants, nine are knitwear, five denim and four fabric manufacturers. There will be a national pavilion under the banner of the Export Promotion Bureau (EPB) at the Texworld/Apparel Sourcing Paris. The next Texworld/Apparel Sourcing will be held from February 11-14, 2019. In September 2017, a total of 1,660 exhibitors participated in the Texworld/Apparel Sourcing. The last edition of the expo recorded 14,581 visitors from 108 countries. The visitors came from all over Europe with a large number of buyers from the UK, France, Turkey, Spain, Italy and Germany.
Govt cuts source tax to 0.6pc for all exporters
The government has decided to reduce both source tax and corporate tax for all exporters to support them to stay competitive in the international market. The source tax will be 0.6 per cent for exporters of all sectors, including those of readymade garments (RMG), leather, jute and frozen foods. Besides, the corporate tax rate will be 12 per cent for apparel exporters. However, the rate will be 10 per cent for apparel factories having green building certification. In the budget for the current fiscal year (FY), 2018-19, the source tax for exporters was increased to 1.0 per cent from 0.7 per cent. Corporate tax rate for apparel exporters was also adjusted upward to 15 per cent, and it was 12 per cent for apparel exporters having green building certification. Meanwhile, many of the banks have already deducted tax at source at 1.0 per cent from export proceedings, as the measures came into effect on July 01, 2018. Officials said the rate of source tax was increased to 1.0 per cent following the expiry of validity of a SRO on June 30, 2018, mentioning the special rate of 0.7 per cent.
The finance minister, in his budget speech for FY 2018-19, said RMG industry is playing an important role in generating employment and fostering economic growth of the country. In FY 2017-18, the country’s export income recorded a moderate growth of 5.81 per cent to $ 36.66 billion, according to the Export Promotion Bureau (EPB) data. Apparel, jute and leather sectors together fetched about $ 32.71 billion in last FY. Of the sectors, RMG export earning posted an 8.76 per cent growth to $ 30.61 billion. Export of leather footwear grew by 5.33 per cent in last FY compared to that of the previous year. However, total export earning from leather and leather products fell by 12.03 per cent.
SCB provides ‘Governor Scholarship’ to DU students
Standard Chartered Bank, Bangladesh (SCB) has provided scholarships to top students of Dhaka University’s Department of Development Studies and Department of Economics. Shitangshu Kumar Sur Chowdhury, Advisor of Bangladesh Bank, attended the event as chief guest at Professor Muzaffar Ahmed Chowdhury Auditorium, Social Sciences Faculty Bhaban of Dhaka University. Representing SCB were Naser Ezaz Bijoy, Chief Executive Officer, and Bitopi Das Chowdhury, Head of Corporate Affairs, Brand & Marketing. Some 60 students from Department of Economics and 19 from Department of Development Studies were awarded the “Governor Scholarship”. Till date, there have been a total of 594 awards under the Governor Scholarship.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$65.91||↑0.45||↑0.69%|
|Crude Oil (Brent)||$71.83||↑0.40||↑0.56%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8050|
|GBP 1||BDT 106.8430|
|EUR 1||BDT 95.8562|
|INR 1||BDT 1.1945|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.