ICAB suggests 2.0pc cut in corporate tax
The Institute of Chartered Accountants of Bangladesh (ICAB) Sunday suggested 2.0 per cent cut in the corporate tax in the budget for the next financial year (FY). Investors would be encouraged to invest more funds following such cut and help generate additional employment opportunities. Corporate tax rate in Bangladesh is one of the highest in this region, contributing to flight of capital abroad. The apex body of chartered accountants shared its thoughts on the National Budget 2019-20 at a press conference on its premises. ICAB president AF Nesaruddin delivered opening remarks while taxation and corporate laws committee (TCLC) chairman Md Humayun Kabir presented a keynote on income tax, VAT and customs policies. As per the ICAB members, VAT rates for essential products should be determined cautiously if multiple rates are introduced in the new VAT law. Some six sectors contribute two-thirds of the aggregate VAT collection, so it will be illogical to bring down all existing VAT rates to 10 per cent from 15 per cent.
Brac Bank leads DSE turnover chart
Brac Bank dominated the Dhaka Stock Exchange (DSE) turnover chart on Sunday while most ten-traded companies captured 35 per cent transactions. As per the Market analysts, investors were mostly on selling binge on Brac Bank shares as the bank recommended lower than expected dividend. The board of directors of Brac Bank has recommended 15 per cent stock dividend for the year ended on December 31, 2018. After the lower dividend news, the investors rushed for selling the bank’s shares. Accordingly, its share price plunged 7.22 per cent to close at Tk 75.80 each on Sunday. According to statistics from the premier bourse, about 2.87 million shares of Brac Bank were traded, generating a turnover of nearly Tk 219 million, which was 6.18 per cent of the prime bourse’s total turnover. The bank’s share traded between Tk 63 and Tk 108.40 in the last one year. The bank has also reported consolidated earnings per share (EPS) of Tk 5.17, consolidated net asset value (NAV) per share of Tk 32.87 and consolidated net operating cash flow per share (NOCFPS) of Tk 9.77 for the year ended on December 31, 2018 as against Tk 4.86, Tk 24.80 and Tk 19.93 respectively for the previous year.
BEZA receives 500 acres of land for Japanese EZ
The Bangladesh Economic Zones Authority (BEZA) has received 500 acres of land in Araihazar upazila from the Narayanganj district administration to set up an economic zone exclusively for the Japanese investors. Deputy Commissioner (DC) of Narayanganj Rabbi Miah formally handed over the documents of land to Md Moniruzzaman, General Manager of the BEZA, at a ceremony held at the latter’s office in the capital on Sunday evening. Member of Parliament (MP) of Narayanganj-2 constituency Md Nazrul Islam Babu, BEZA Executive Chairman Paban Chowdhury, and its executive member Md Harunur Rashid attended the handover ceremony. As per BEZA Executive Chairman, the day marked a very significant milestone in the country’s endeavour towards achieving economic development through industrialisation and employment generation. A world-renowned company like Sumitomo Corporation of Japan is engaged in developing the land in the Japanese Economic Zone (JEZ).
Sales of Commercial Vehicles pick up on economic boom
According to data from Bangladesh Road transport Authority, sales of commercial vehicles rose 10.65 percent year-on-year to 25,980 units in 2018 fuelled by rising economic activities amid stable political situation. Sales of truck led the growth of the commercial vehicle segment in the broader automobile industry: 12,663 trucks were sold last year, up 22.31 percent from 10,363 in 2017. Sales of covered vans were up 10.68 percent year-on-year to 5,729 units and that of tractors rose 28 percent to 3,553 units. Bus sales were, however, down 26.72 percent to 2,755 units and cargo van sales dropped 9.41 percent to 1,280 units. As per the Chairman of Runner Group, the market of commercial vehicle has been booming for the last few years thanks to rising economic activities. He credited the steady economic growth and export earnings for the increased sales of the commercial vehicle. According to Chairman of Nitol Tata, [distributor of Indian auto giant Tata], the market size of the commercial vehicle segment was about Tk 4,200 crore in 2017 from about Tk 2,000 crore a decade ago. It is expected to reach Tk 5,000 crore in 2018. The market grew 15 percent to 20 percent every year in the last one decade, which also saw a shift in market leadership in the segment.
Rice output to rise, USDA forecasts
According to the US Department of Agriculture (USDA), Bangladesh’s rice production is expected to increase 7 percent year-on-year to 3.49 crore tonnes in the 12 months to April thanks to higher acreage and yields during the aus and aman season. Sufficient and uninterrupted input supply and timely disbursement of easily obtainable low-cost agricultural loans to marginal and poor farmers also contributed to increase in acreage and yields. The US agency’s market year (MY) runs from May to April, so boro, which is harvested between the months of April and May, becomes the first crop of the year. But the government calculates the annual rice output as per the length of the fiscal year, so aus becomes the first crop of the year, aman the second and boro the last. The total rice cultivation area expanded 4 percent year-on-year to 1.17 crore hectares in MY2018-19, according to the USDA’s Grain and Feed Update on Bangladesh. The agency has revised upwards its earlier estimate of husked rice production during aman season to 1.35 crore tonnes from 1.32 crore tonnes thanks to favourable weather conditions.
Bank Asia declares 5pc cash and 5pc stock dividends
Bank Asia has recommended 5 percent cash and 5 percent stock dividends for the year ending on December 31, 2018. The bank has also reported earnings per share of Tk 2.01 and per share net asset value of Tk 20.88.
Premier Bank organized School Banking Conference 2019
The Premier Bank Limited recently organised “School Banking Conference 2019” in Khulna as the lead bank. S M Moniruzzaman, Deputy Governor, Bangladesh Bank, attended the programme as the Chief Guest, while AKM Fazlur Rahman, Executive Director, Bangladesh Bank, Dhaka and Md. Mosharraf Hossain Khan, Executive Director, Bangladesh Bank, Khulna graced the event as special guests. M. Reazul Karim (FCMA), Managing Director & CEO of the Premier Bank Limited, presided over the event
New Line Clothings to allocate 30m IPO shares
The New Line Clothings will allocate 30 million ordinary shares among the successful applicants as the company’s initial public offering (IPO) lottery draw was held on Sunday. The lottery draw was held at 10:00am at the Institution of Engineers, Bangladesh (IEB) in Dhaka. The IPO result has been published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and the company. The New Line Clothings, which received approval from the securities regulator on November 27, 2018, raised a capital of Tk 300 million from the public by floating 30 million ordinary shares. The company received applications for the IPO from February 18 and March 03 to raise a fund worth Tk 300 million from the capital market under the fixed price method.
US-Bangla adds new aircraft to its fleet
The US-Bangla Airlines received its first brand new ATR 72-600 aircraft at the Hazrat Shahjalal International Airport (HSIA) in the city on Sunday. The new aircraft started its journey from the Frankjal Airport of France on March 22. It reached Dhaka on the day after making stopovers in Egypt and Muscat for re-fuelling. The addition of the ATR aircraft raised the number of planes in the US-Bangla Airlines fleet to eight. The aircraft having 72 seats will be used for domestic flight operation from March 31.
Thai trade fair begins Wednesday
A four-day Thailand Trade Fair begins on Wednesday in Dhaka to exhibit Thai products aiming at strengthening the country’s relationship with Bangladesh. Thai commerce ministry in association with Thai embassy in Dhaka would jointly orgainse the event for the 18th time, said Thai embassy minister counsellor (commercial) Suebsak Dangboonrueng at a news conference at Sonargaon Hotel in Dhaka on Sunday. Commerce minister Tipu Munshi will inaugurate the fair attending as chief guest at grand ballroom of Sonargaon Hotel. The fair will remain open from 11:00am to 9:00pm from March 27 to 30. This year, 76 companies from Thailand and Bangladesh will exhibit their products, mainly medicare services, cosmetics, beauty and wellness products, bedding accessories, electrical appliances, stationary, household products, fresh fruit and food, textile and fabric, lingerie and jewellery. Alongside exhibiting the products, there will be cultural shows performed by Thai artists, including fashion show and live music.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 58.41||↓0.63||↓1.03%|
|Crude Oil (Brent)|| $ 66.40||↓0.63||↓0.94%|
|Gold Spot|| $1,315.45||↑1.77||↑0.13%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.2404|
|GBP 1||BDT 109.9050|
|EUR 1||BDT 94.0415|
|INR 1||BDT 1.2000|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<