SAPL closes USD 30.5 million financing deal with FMO, IDCOL
Summit Alliance Port Ltd. (SAPL), the leading private sector inland container depot operator, has availed a syndicated term loan facility from NederlandseFinancierings-MaatschappijVoorOntwikkelingslanden N.V. (FMO) and Infrastructure Development Company Limited (IDCOL) to set up the first ever private sector Inland Container River Terminal facility of the country at Muktarpur, Munshiganj. With Green Delta Capital Limited (GDCL) as the “Mandated Lead Arranger”, an aggregate financing of USD 30.51 million has been raised from the two lenders, said a statement. To commemorate the financial closing of this landmark transaction, a closing ceremony was recently held at the Pan Pacific Sonargaon.
Government to spend BDT 24.0 billion for Tripura power in five years
The government will have to spend around BDT 24.4 billion in the next five years for importing power from the Indian state of Tripura. The power will come through government to government arrangement (G2G). The country is currently importing 500 megawatts (MW) of power from India. According to the agreement, Bangladesh government has to import 100 MW of power at BDT 6.3 per kilowatt hour/ per unit under “no-electricity, no-pay” method from India in the first year. In the second year, price will be increased to five% on the first year’s price. The price will increase gradually in the third, fourth and fifth year proportionately at the same%. The cabinet committee on public purchase at a meeting Wednesday approved the tariff of power import. It also approved 10 other projects involving over BDT 39. 4 billion. The cabinet committee on economic affairs also approved appointing a firm to provide legal and consultancy services for protecting Intellectual Property Rights of Jute Genome Project. Finance Minister AMA Muhith presided over both the meetings at the cabinet division of Bangladesh Secretariat.
Cotton imports from India rise 36.0%
Cotton imports from India increased 36.0% year-on-year to 3.0 million bales in 2015, according to data from Bangladesh Textile Mills Association. India became the largest cotton supplier to Bangladesh’s spinners and weavers thanks to the rise in imports, the industry insiders said. One bale weighs 480.0 pounds or 218.0 kilograms. In 2015, Bangladesh imported 6.1 million bales of cotton, 49.0% of which came from India. In 2014, cotton import from India grew by 27.0% year-on-year to 2.2 million bales, which was 37.0% of that year’s total cotton import of 5.9 million bales. Cotton imports from India started climbing in 2011. Bangladesh imported total 4.4 million bales of cotton that year, of which 1.7 million bales came from India, registering a 48.0% year-on-year growth. Due to higher quality, lower prices and shorter lead-time, India has become the largest cotton sourcing country for Bangladesh, Tapan Chowdhury, president of BTMA, said at a press meet at the association’s office in Dhaka yesterday.
UK bars air shipments from Bangladesh: Security issue cited as ground
The UK government has decided not to allow direct air shipments from Bangladesh on security ground which, according to local exporters, would affect the country’s foreign trade activities and its image abroad. “Recent security assessments of Dhaka International Airport found that some international security requirements were not being met. As part of a set of interim measures, cargo will not be allowed on direct flights from Dhaka to the UK until further notice,” according to an update issued on Tuesday and also available on the website of the British High Commission (UK) in Dhaka. “Airlines carrying cargo between Bangladesh and the UK on indirect routes are being asked to ensure it is re-screened before its final leg into the UK,” it added. The UK government is working with the government of Bangladesh to support them in improving standards for all aspects of aviation security, it further mentioned. The latest UK move came a couple of months after Australia put restriction on air shipments from Bangladesh on the same ground.
Businesses still disagree with government over VAT law: Want multiple lower tax rates instead of uniform rate of 15.0%
Businesses and the government still stand in disagreement over some provisions of the new VAT law, principally a tall uniform rate of the tax at 15.0% for all — small kiosks or big shots. The country’s apex trade body wants pared-down multiple rates of VAT, even down to a minimal 2.0% for the small fry in business. But the National Board of Revenue (NBR) says enough has been considered for them so far and no further. The Value Added Tax (VAT) and Supplementary Duty Act-2012 is now readied to be pushed through from July 1, 2016 as per government decision. The NBR on government side and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) thus are sticking to their respective positions on the new law. Also, the government is going to enforce the law with an exemption ceiling of BDT 3.0 million for facilitating small businesses. According to the new law, there will be a uniform rate of VAT at 15.0%. However, businesses can claim credit from VAT on purchase of raw materials. On the other side, businesses demand fixation of the VAT-exemption ceiling at BDT 3.6 million, a reduced rate of VAT for businesses who will be unable to obtain VAT credits and incorporating multiple rates of VAT instead of uniform rate.
World Stock and Commodities
|Index Name||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)*||$38.20||(0.09)||(0.24%)|
|Crude Oil (Brent)*||$40.86||(0.21)||(0.51%)|
|Dow Jones Industrial Average||17,000.36||+36.26||+0.21%|
|USD 1||BDT 78.38*|
|GBP 1||BDT 111.27*|
|EUR 1||BDT 86.07*|
|INR 1||BDT 1.17*|
*Currencies and Commodities are taken from Bloomberg.