BD Auto Industries project near completion
Local and foreign shareholders of Bangladesh Auto Industries Ltd held a meeting with Kazi Mohd Aminul Islam, Executive Chairman of Bangladesh Investment Development Authority (BIDA) recently. The Company will manufacture environment-friendly two-wheeler, three-wheeler and four-wheeler cars within March-April of next year. Managing Director of the Company Mir Masud Kabir disclosed this in a meeting with Kazi Mohd Aminul Islam. The Company, a joint venture entity with the financial support of Mango Technology Ltd and foreign investors is now establishing the factory at Mirsharai in Chittagong. During the meeting, the BIDA Chief assured the Company management of all-out cooperation for the successful completion of the project and said Bangladesh offers a safe and secure foreign investment policy in the country.
BTRC allows telcos to charge more for Mobile Banking service
Bangladesh Telecommunication Regulatory Commission on Monday allowed the mobile network operators to charge the mobile financial service operators each time for accessing mobile operators’ network. Telcos were given the scope to charge more under a directive of the BTRC issued last week following long demand from the mobile operators. However, whether the customer or the MFS operators would bear the cost is yet to be settled, officials of BTRC and the MFS operators said. Under the directive of BTRC, mobile operators were allowed to charge revenue generating MFS Tk 0.85 and non-revenue generating mobile financial transaction Tk 0.4 for each session of unstructured supplementary services data (USSD) of 90 seconds.
Bank cards to be costlier
The cost for issuing new credit and debit cards will balloon 3-6 times after the government imposed fresh duty on the imported items, which the Bankers say is conflicting with the Bangladesh Bank’s push towards a cashless society. In the budget for fiscal 2019-20 unveiled on June 13, there was a fresh tariff of $0.70 on each magnetic stripe card import, $2 for chip-and-pin card and $3 for contactless card. There was no declared tariff rate on the imported cards, but the Customs Department commonly imposed a maximum of $0.52 on each card, according to an official of the National Board of Revenue. “Given the government and the central bank’s push for making a cashless society the new rates are completely illogical,” said Syed Mahbubur Rahman, Chairman of the Association of Bankers, Bangladesh, a platform of Private Banks’ Managing Directors. The move will discourage clients from asking for credit and debit cards as banks will be compelled to impose charges for issuing them.
Transport operators to face higher tax
Road and water transport operators are set to face 25 percent higher taxes on their earnings from next fiscal year as the revenue authority feels tax collection from the transport sector is not up to the mark. According to a senior official of NRB, “They get insignificant amount of taxes, especially from the land transport sector, although its share in GDP is quite high”. He also added, the spike in taxes, which comes five years after the NBR had increased the presumptive tax from road and water transport owners, is expected to fetch higher revenues. Land and water transport accounts for nearly 8 percent of the country’s GDP in fiscal 2018-19. Yet, tax collection from all vehicles, including personal cars, hover around Tk 1,000 crore, according to data from the Bangladesh Bureau of Statistics and the NBR.
Loss making entities must also pay tax at regular rate
Tax burden of source tax deducting entities, including companies, banks, NGOs, government agencies and other employers, would increase significantly if they did not deduct source tax from applicable expenditures. The organisations would have to pay tax at regular corporate rates on the expenditures irrespective of profit or loss of the Companies as the National Board of Revenue would not accept the expenses as admissible costs for tax waiver in case of failure of tax deduction at source. Finance minister AHM Mustafa Kamal has proposed an amendment in the Income Tax Ordinance-1984 in the budget through the proposed Finance Act-2019. According to the existing income tax law, tax officials could disallow the expenditures on which TDS was not made, NBR officials said.
Union Capital to issue Tk 2.0b unsecured bond
The Board of Directors of Union Capital has decided to issue unsecured subordinated redeemable non-convertible bond of Tk 2.0 billion in face value through private placement. Face value per unit (lot size) of the bond is Tk 10 million only with seven years tenure, grace period two years and coupon range is 9.0 per cent to 12 per cent per year. The issuing of bonds is subject to the approval of the regulatory authorities — Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC), the disclosure said. Each share of the non-bank financial institution, which was listed on the Dhaka Stock Exchange (DSE) in 2007, closed at Tk 11.50 on Monday, losing 2.54 per cent.
Stocks fall again; DSEX dips below 5,400-mark
Stocks slumped further on Monday, the second day after unveiling the budget, as some proposals of the budget made investors upsets. DSEX, the prime index of the Dhaka Stock Exchange (DSE), settle at 5,375, shedding 55.54 points or 1.02 per cent over the previous session. Finance Minister AHM Mustafa Kamal unveiled the national budget for the fiscal year (FY) 2019-20 on Thursday last. The finance minister proposed, among other measures, imposition of 15 per cent additional tax on retained earnings or reserves, if the amount exceeds 50 per cent of the paid-up capital of the company.
Prime Bank gets new DMD
Faisal Rahman has recently been appointed Deputy Managing Director and Chief Business Officer of Prime Bank. He will lead the Bank’s corporate and institutional banking division. Prior to the appointment, he was the Senior Executive Vice President and head of relationships & structured finance unit of Eastern Bank’s corporate banking division.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225|| 21,053.32||↓70.68||↓0.33%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 51.82||↓0.11||↓0.21%|
|Crude Oil (Brent)||$ 60.81||↓0.13||↓0.21%|
|Gold Spot||$1,341.00|| ↑1.34||↑0.10%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.1752|
|GBP 1||BDT 104.5720|
|EUR 1||BDT 93.3309|
|INR 1||BDT 1.1896|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<