Govt may not hike SD on telecom services
Finance Minister AHM Mustafa Kamal may scrap his plans to raise the supplementary duty (SD) on telecom services and double the deposit in VAT-related disputes following criticism and pleas from various quarters. While unveiling the budget for fiscal year 2020-21 on June 11, the minister has proposed hiking the SD on all kinds of telecom services to 15 per cent from the previous 10 per cent. Several other cabinet members and members of the parliament also requested the finance minister to scrap the SD. Apart from the latest hike in the supplementary duty, there is a 15 per cent value-added tax and 1 per cent surcharge on mobile phone bills from before, which make the total tax for mobile phone use 33.25 per cent now. Another area that may see change is the deposit needed for appealing against tax claims before VAT commissioners and appellate tribunals. Kamal has proposed to increase it from 10 per cent of the disputed amount at present to 20 per cent. The current practice is that firms file appeals for revision of VAT claims before commissioners by paying 10 per cent of the disputed amount. Then they can appeal before the VAT Appellate Tribunal of the NBR by paying another 10 per cent of the disputed amount. The Tk 568,000-crore budget and the Finance Bill 2020 would be passed in parliament on Tuesday.
Private sector credit growth picks up in May — on paper
Private sector credit data appears to have gone against the grain in May. For 24 months on the trot, private sector credit growth was lesser than in the previous month. And the trend was expected to continue given the overall doom and gloom on the economy. But in May, it edged up to 8.86 per cent from 8.83 per cent a month earlier, according to data from the central bank. For instance, garment factory owners took out funds from the Tk 5,000 crore package allotted from them to provide the salaries of their workers, he said. Another reason for the uptick is the banks’ opting for interest capitalisation in response to the central bank order to not classify any types of loan until September with the view to cushioning the blow for borrowers from the ongoing economic mayhem, said Mansur, also the chairman of Brac Bank. Interest capitalisation is the addition of unpaid interest to the principal balance of a loan. The subsequent interests are calculated on this new amount, meaning the loan balance increases over time and borrower ends up with a larger loan amount. In fact, given the government’s increasing tendency to borrow from the banking sector, the private sector might be crowded out from funds altogether. The undetermined state of the coronavirus epidemic curve in Bangladesh also suggests that economic activities cannot begin in earnest anytime soon. So, May’s figure seems like a blip in the narrative of private sector credit growth rather than a harbinger.
BSEC takes a tough line on IPO scrutiny
The securities regulator is scrutinising the IPO proposals very carefully for the sake of investors and the capital market. The securities regulator in last week imposed a penalty worth Tk 1.0 million on Al Faruque Bags for violating rules in case of submitting IPO proposal. According the BSEC, the issuer company, auditor and issue managers breached the public issue rules in case of submitting the IPO proposal. Along with fining the issuer company, the securities regulator fined the two issue managers Tk 0.5 million and auditor Tk 0.2 million.
Modhumoti Bank holds 49th board meeting
The 49th Meeting of the Board of Directors of Modhumoti Bank Limited was held on Saturday on digital platform.Mr. HumayunKabir, Chairman of the Board of Directors, Mr. Shaikh Salahuddin, MP, Vice-Chairman Board of Directors, Barrister Sheikh Fazle Noor Taposh, Chairman, Executive Committee of the Board, among the members of the Board of Directors, Mr. Md. ShafiulAzam, Managing Director & CEO of the Bank and many others were present. Source: https://today.thefinancialexpress.com.bd/stock-corporate/modhumoti-bank-holds-49th-board-meeting-1593270294 NRBC re-elects Chairman NRB Commercial Bank Limited held its 100th Meeting of Board of Directors on Saturday. Managing Director & CEO Mr. Md. Mukhter Hossain in presence of the Board of Directors through video conference. Mr. S M ParvezTamal was re-elected as the Chairman of the Board of Directors of the Bank.