Budget ambitious but doable: ICAB
The proposed budget is ambitious and challenging because of the coronavirus pandemic but the government would be able to implement it, according to the Institute of Chartered Accountants Bangladesh (ICAB). Finance Minister AHM Mustafa Kamal has presented a Tk 568,000 crore timely and large budget for the next fiscal year, said Muhammad Farooq, president of the ICAB, during a virtual media briefing yesterday.The finance minister talked about widening the government’s reliance on the domestic sources in FY21 in order to meet the budget deficit. Kamal has proposed to borrow Tk 84,983 crore from the banking sector to finance the deficit budget. In the current fiscal year, the government has borrowed from the banking sector nearly double the amount it originally targeted. Similarly, the target on bank borrowing would overshoot as the fiscal year progresses. The ICAB called for bringing down the tax at source for the professionals from 10.12 per cent to 8 per cent. Cutting the advance tax at the import stage on raw materials used in local manufacturing industries to 4 per cent from 5 per cent is a business-friendly initiative. Attaining the revenue collection target would be a major challenge because trade, commerce, industries, import, export and services have all been affected severely by the covid-19.In order to curb the trade under-invoicing, the provision for imposition of penalty at 50 per cent is a laudable move. The finance minister’s proposal to increase the deposit to 20 per cent from 10 per cent on disputed tax amount before filing an appeal with the Appellate Tribunal and the Appellate Commissionerate would increase the cost of businesses.
MFS should be mandatory for social safety net handouts
Nagad yesterday urged the government to make it mandatory to use the mobile financial services platform to disburse funds for the social safety net programmes. The MFS arm of the postal department made the call after Finance Minister AHM Mustafa Kamal on Thursday proposed raising the allocation for social security by 16.74 per cent to Tk 95,574 crore for fiscal 2020-21. The new allocation is 16.83 per cent of the total budget and 3.01 per cent of the total gross domestic product. The government has already adopted MFS for distribution of grants and allowances in several sectors, Nagad said in a press release. And that needs to be increased.Last month, four MFS providers had disbursed the prime minister’s Eid gifts of Tk 2,500 each to 50 lakh families affected by the coronavirus outbreak in Bangladesh. Nagad distributed the handouts to 17 lakh families.
Walton’s generosity towards its retail investors amid hard times
Walton Hi-tech Industries usually offers several types of discounts on its products round the year. But this time, the high-flying company has come up with a discount on its share price, in a move not seen by the country’s bourse before. The move comes to give relief to general shareholders amid the raging coronavirus pandemic. The local electronics giant has already discovered its cut-off price for each share at Tk 315 through bidding of eligible investors as it plans to go public. General investors usually buy shares at 10 per cent lower than the cut-off price in the initial public offering (IPO), according to the listing regulations. As a result, Walton’s share price would stand at Tk 283 for the general shareholders.In total, the company would make 15.48 lakh shares available for general investors as it looks to raise Tk 39.3 crore from the public. Another 13.79 lakh shares will be offloaded to the eligible investors for Tk 60.7 crore. After listing with the bourse, sponsors’ shareholding would be 99.03 per cent, while the rest 0.97 per cent would be off-loaded. Walton has a huge potential in the upcoming years, so it received a good premium during the bidding, said ParthaProtim Das, its company secretary.
Community Bank wins prestigious award
Community Bank Bangladesh Limited has been recognized as the winner in the Transformation Excellence category of globally acclaimed Infosys-Finacle Client Innovation Awards2020 for achieving Digital Transformation in just 48 days. Community Bank partnered with Edgeverve-Infosys to offer cutting-edge banking solutions to its customers. Last year the Bank implemented its Core Banking Solution (CBS) project in just 48 days without any foreign travel or associated costs. This greenfield CBS implementation took only 48 days to go live and the Bank could proficiently onboard around 0.2 million customers during its inception.The platform is now serving smoothly in a stable environment upto 200,000 active customers across 64 districts, 24/7 even stress scenario due to Covid-19. Community Bank will complete its first year of operations this September. It also offers Community Cash, a mobile banking app, where the active client base is 60,000 and adding 10,000 each month.
Virtual job festival July 03-05
A virtual job festival is going to be held from July 03 to 05 in the capital with the purpose to create placements for some 500 candidates. Skill.jobs and Bangladesh Society for Human Resource Management (BSHRM) are jointly organising ‘Virtual Job Fest-2020’. Organisers came up with the information at an online news conference via Facebook on Saturday. Almost all types of organisations and institutions have changed their ways of working by following ‘social distancing’ because of the Covid-19 pandemic.Interested candidates can submit their CVs online from June 13 to 23. Special training of selected candidates will be held from June 26 to 29 and virtual interviews will be held from July 03 to 05 and finally virtual recruitment will be held on July 07, informed organisers.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||3,967.31047||↑ 0.56||↑ 0.01|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$36.26 ||↓0.08||↓0.22%|
|Crude Oil (Brent)||$ 38.73||↑0.18||↑0.47%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.4115|
|GBP 1||BDT 104.547|
|EUR 1||BDT 93.8346|
|INR 1||BDT 1.10026|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<