Govt earns Tk 300m revenue in 12 days
Some 20 thousand metric tons of foods and raw materials worth $ 2,85,908 have been imported from India by rail through Benapole port in the last 12 days. The government earned a revenue of Tk 300 million (30 crore) and the railway department earned over Tk 0.83 million (8 lakh 33 thousand 508). Due to lockdown in India, the import of food, raw materials through Benapole land port was suspended for two and a half months. Due to the announcement of lockdown by the Government of India, import of all types of goods from India through Benapole land port has been stopped since March 24. For the convenience of traders, goods are now being unloaded at Benapole port 24 hours a day.
BD-Bhutan PTA likely by Aug 30
Preferential Trade Agreement (PTA) between Bangladesh and Bhutan is in the final stage and it is likely to be signed by August next to increase bilateral trade between the two countries. All kinds of necessary discussions for signing the PTA have already been completed. The two countries’ high officials agreed to sign the deal as they talked in a daylong video conference held on Tuesday. A ten-member delegation of the commerce ministry of Bangladesh headed by Additional Secretary Sharifa Khan and a 14-member delegation of Bhutan headed by Director General of the Department of Trade, Bhutan Sonam Tenzin took part in the conference. The PTA text, product list and other related issues were finalised in the conference, according to a press release of the commerce ministry. Agreement documents will be sent to the law ministry and the cabinet division for vetting and the required approval respectively. The commerce ministers of both the countries will jointly sign the PTA by August 30, 2020. It will be the first deal between the two countries. Under the deal some 100 Bangladeshi products will enjoy duty-free access to the Bhutanese market. On the other, some 34 Bhutanese items will also enjoy duty free access to the Bangladesh market. The volume of bilateral trade between the two countries is gradually expanding. The volume of bilateral trade between the two stood at US$ 57.90 million in the fiscal year 2018-19. It was only US$ 26.52 million in the FY 2012-13. Apparels, food items, plastics, pharmaceuticals, furniture and electrical products are being exported from Bangladesh. Generally, Bangladesh imports chemicals, pulps, bolder stones, fruits, vegetable, etc, the press release mentioned.
Krishibid Feed plans to go public for Tk 30cr
Krishibid Feed, a sister concern of Krishibid Group, has deisgns to go public to raise Tk 30 crore to expand its business to meet the growing demand for feeds in the livestock sector. The poultry, fish and cattle feed producer has already applied to the stock market regulator for its initial public offering. One-third of the IPO proceeds will be used to repay bank loans. About Tk 18 crore would be used for business expansion purposes and the rest to foot IPO expenses. The building and other civil construction works would cost Tk 7 crore and the new machinery Tk 4.08 crore. The company will also shell out Tk 4.06 crore to buy 13 delivery vans to strengthen its supply chain and Tk 2.85 crore to buy two diesel generators. According to the IPO prospectus, the industry’s current turnover is more than Tk 10,000 crore and a growth rate of about 10 per cent a year. The company’s turnover rose 133 per cent to Tk 89.92 crore in its 2018-19 financial year compared with the 2015-16 financial year, but its net profit rose 45 per cent to Tk 5.10 crore during the time, according to the prospectus.
MoTJ seeks cut in VAT on man-made fibre yarns
The Ministry of Textiles and Jute (MoTJ) has sought reduction in the value added tax (VAT) rate on all artificial fibre yarns to 2.0 per cent instead of proposed 6.0 per cent. According to the new budget document, VAT on man-made fibre yarns has been increased by 1.0 per cent to 6 per cent in the proposed budget for the next fiscal year (FY). The existing VAT rate is 5.0 per cent on purchase of artificial fibre yarns per kilogram in the current FY. The newly proposed VAT rate may push up the cost of clothes, produced with artificial fibre yarns, and also hurt the low income group people, industry insiders said. Bangladesh Textile Mills Association (BTMA) on June 12, 2020requested the textiles and jute ministry to reduce the proposed VAT rate. On June 14, the MoTJ requested the National Board of Revenue (NBR) to consider the issue following the appeal made by BTMA. Finance Minister AHM Mustafa Kamal on June 11 unveiled the national budget for the fiscal year 2020-21 with an outlay of Tk 5.68 trillion.
BSEC to withdraw floor price mechanism soon
The BSEC will withdraw the floor price mechanism soon in a bid to ensure free price movements of stocks. Trading on both the bourses remained dull as the majority number of sale orders placed above the ‘floor prices’ kept the buyers at bay since March 19 last. As per exiting system, the market prices of the listed securities have no scope to go below individual floor prices to contain abnormal price fall. Market insiders said under the existing system the buyers have not enough scope to purchase securities at their desired prices. As per the BSEC directive, opening price of any listed security shall be set at the average of the closing price of immediate preceding five trading days of March 19, and this average price calculated for each security shall be considered as floor price and the lowest limit of the circuit breaker.
CSE for reduction of corporate tax for listed cos
Chittagong Stock Exchange (CSE) has made a set of proposals, including reduction of corporate tax for listed companies, for the government’s further consideration before finalising the budget for the fiscal year (FY) 2020-21. In the budget, the government has proposed to reduce the corporate tax of non-listed companies by 2.50 per cent amid unchanged corporate tax rate for listed companies. The CSE has also sought the waiver of its tax for next five years. The stock exchanges are paying tax availing a benefit which will be withdrawn in 2020. Dhaka Stock Exchange (DSE) has already sold 25 per cent stakes to a Chinese strategic partner, while the CSE is yet to finalise deal with any strategic partner. The CSE has also proposed to reduce tax at source to 0.015 per cent from existing 0.05 per cent imposed on commission realised from transactions of listed securities. Most of the brokerage firms presently are incurring losses. As a result tax at source imposed on brokerage commission should be reduced to 0.015 per cent considering the ongoing situation.
City Bank donates nasal cannula to Chattogram General Hospital
City Bank has donated a high flow nasal cannula machine to Chattogram General Hospital (CGH) to facilitate treatment of corona virus disease (Covid-19) patient. The machine was donated as part of philanthropic initiative by the bank’s chairman Aziz Al Kaiser. High-flow nasal cannula systems delivers heated and humidified oxygen according inspiratory flow demands for improving patient tolerance and comfort.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||3,961.90399||↑ 1.25||↑ 0.03|
|↑30.39||↑ 0.12 %|
|FTSE100||6,253.25||↑ 10.46||↑ 0.17 %|
|Nikkei 225||22,455.76||↓126.45||↓ 0.56 %|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 38.14 ||↓0.24||↓ 0.63 %|
|Crude Oil (Brent)||$ 40.79||↓0.17||↓ 0.41 %|
|Gold Spot||$ 1,727.19||↑ 0.66||↑ 0.04%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.4409|
|GBP 1||BDT 104.731|
|EUR 1||BDT 93.8542|
|INR 1||BDT 1.09645|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<