Budget positive for motorcycle makers
According to market players, the continuation of concessionary duties on raw material import for motorcycle manufacturers into fiscal 2019-20 would help the fast-growing sector. Furthermore, Finance Minister AHM Mustafa Kamal added three new raw materials into the list for concessionary duty, which has been around since fiscal 2017-18. “This is great news for the automobile sector,” said Hafizur Rahman Khan, Chairman of Runner Automobiles, one of the leading motorcycle manufacturers. He, however, called for a long-term policy for the sector, as the constant change in rules leaves investors in a state of confusion and scares off potential ones. The government’s move to declare it a thrust sector would help expand motor bike assemblers and manufacturers’ business, said Abul Kasem Khan, former President of the Dhaka Chamber of Commerce and Industry.
Dhaka stocks edge up further on tax review hope
Stocks ended marginally higher for the second day in a row on Wednesday as investor showed their buying appetite on tax review expectations. DSEX, the prime index of the Dhaka Stock Exchange (DSE), settle at 5,411, gaining 11.16 points over the previous day. According to market analysts, investors went for buying shares with an expectation that the government might review 15 per cent tax imposed on listed companies’ reserve and retained earnings in the proposed budget. A leading broker said possibility to review the proposed tax on listed companies’ reserve and retained earnings made investors hopeful. The National Board of Revenue (NBR) Chairman hinted at the possibility of reviewing the proposal of the budget for fiscal year (FY) 2019-20. The market stakeholders also criticized strongly over the proposed tax on stock dividend and retained earnings which prompted the authorities concerned to weigh the scope for reviewing the measure.
Islami Bank to issue Tk 12b bond
The Board of Directors of Islami Bank Bangladesh Limited has decided to issue “IBBL Third Mudaraba Redeemable Non-Convertible Subordinated Bond” of Tk 12 billion under Mudaraba Principle of Islamic Shari’ah. The Board has taken the decision to issue the bond to raise the Tier-II Capital of the bank under Basel-III. The tenure of the bond is seven years, said an official disclosure on Wednesday posted on the DSE website. The issuing of bonds is subject to the approval of the regulatory authorities — Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC). Each share of the Bank, which was listed on the Dhaka Stock Exchange (DSE) in 1985, closed at Tk 24.20 on Tuesday. In the last one year, its share traded between Tk 21.90 and 28.40 each.
European envoys visit top eco-friendly garment factory
Three European ambassadors to Bangladesh yesterday visited Plummy Fashions in Narayanganj to witness environment-friendly knitwear production in the world’s first platinum-rated LEED-certified factory. Sweden’s Charlotta Schlyter, Norway’s Sidsel Bleken and Denmark’s Winnie Estrup Petersen were accompanied by former caretaker government adviser Rokia Afzal Rahman. The Leadership in Energy and Environmental Design (LEED) platinum certificate is from the United States Green Building Council (USGBC). As per Fazlul Hoque, MD of Plummy Fashions, The envoys went around the factory and expressed high appreciation of initiatives to ensure not only a safe workplace but also to protect the environment. They expressed satisfaction at the large-scale development taking place in the garment sector in recent years and hoped that new investors would follow the same path.
New VAT system to bring in Tk 11,000cr more
According to the officials, the National Board of Revenue expects to collect about Tk 11,000 crore more for imposition of VAT on various goods and services and increasing rates on many others. It also aims to register Tk 5,000 crore by ensuring use of electronic sales registers — electronic fiscal device (EFDs), sales data controller (SDC) or point of sales — by 25 types of businesses, including grocery stores, hotels and restaurants, sweetmeat shops, clothing stores, furniture sellers, jewellers, electronics sellers, and large and medium wholesalers. The NBR’s collection target from VAT in the incoming fiscal year is Tk 117,672 crore. This year, it is expecting to collect Tk 81,820 crore, meaning it has to come up with new ways to bring home an additional Tk 35,852 crore in fiscal 2019-20.
BTMA urges govt to scrap 5pc tax on yarn, machinery
The Bangladesh Textile Mills Association on Wednesday demanded that the government scrap the 5 per cent advance tax on textile machinery and raw materials and the 5 per cent value-added tax on yarn it proposed in the national budget for the fiscal year of 2019-20. BTMA President Mohammad Ali Khokon said, ‘Five per cent advance tax on textile machinery and machinery in any manufacturing unit would hinder and discourage investment as it would make the investment costly and unprofitable.’ He said that imported raw materials, machinery, equipment and parts had been remained stuck in ports and could not be discharged due to complexities arisen after the imposition of 5 per cent tax on them, hampering production in the mills.
Dhaka Bank, Sandhani sign agreement
Dhaka Bank signed a tripartite memorandum of understanding (MoU) yesterday with voluntary blood donation organisation Sandhani and software development firm Exhort, to develop a blood bank management software and website. Emranul Huq, additional managing director of Dhaka Bank; Prof Tosaddek Hossain Siddiqui, adviser of Sandhani, and Dr Shahariar Hossain, CEO of Exhort, signed the MoU.
Premier Bank launches digital Banking solution
The Premier Bank Limited on Wednesday introduced mobile banking application “pmoney”, a complete digital Banking solution. Customers of the third generation PCB will now just need to use the ‘pmoney’ app to get a diversified view of their financial transactions. Chairman of the bank, Dr. H. B. M. Iqbal formally launched the latest digital product at a function at the Corporate Office.
Asia Insurance re-elects Chairman
Mr. Yussuf Abdullah Harun FCA, MP, was unanimously re-elected as Chairman of the Board of Directors of Asia Insurance Limited at its 137th Board of Directors Meeting held recently.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225|| 21,422.85||↑88.98||↑0.42%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)|| $ 54.43||↑0.67||↑1.25%|
|Crude Oil (Brent)||$ 62.59||↑0.77||↑1.25%|
|Gold Spot|| $1,380.01|| ↑19.63||↑1.44%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.9115|
|GBP 1||BDT 104.4550|
|EUR 1||BDT 92.9368|
|INR 1||BDT 1.1891|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<