Government to increase food subsidy

The government plans to increase the food subsidy by around 32.0% to BDT 37.2 billion in the revised budget for the outgoing fiscal year. It also wants to increase the food subsidy to BDT 40.0 billion in the new budget for the next fiscal year, according to the plan of the finance ministry. The food subsidy was increased by more than 50.0% in the current fiscal year over the previous budget although prices of staples fell in international and local markets. The government introduced a programme last year to distribute rice among the poor at BDT 10 a kilogram, which is mainly creating pressure on the subsidy to be increased, a food ministry official said. Besides, rice prices start going up this year. The government had plans to import 0.2 million tonnes of rice this year, which may increase further in the next fiscal year, the official said. Rice distribution through open market sales will also be increased, which would also contribute to the increase in the food subsidy, he said.

Source: http://www.thedailystar.net/business/govt-increase-food-subsidy-1406815

VAT-free turnover limit likely to be BDT 3.6 million

The government may increase the VAT-free turnover ceiling to BDT 3.6 million from BDT 3.0 million as it looks to appease small and medium firms anxious about the impact the new VAT law would have on their profitability. Currently under the VAT Act 1991, many small and medium businesses pay a fixed amount of VAT, known as package VAT, and they usually do not submit returns regularly, even though a section of them generate enough sales to be able to pay the turnover tax. The implementation of the new law, which envisages a uniform 15 percent VAT, will put an end to the practice of paying package VAT along with the other reduced rates now in effect. The new VAT law, which will take effect from July 1, will force a large number of retail and wholesale stores to maintain records and pay VAT based on actual sales, said revenue officials. Now, a joint panel of the National Board of Revenue and the Federation of Bangladesh Chambers of Commerce and Industry upon reviewing the new VAT law suggested an increase in ceiling to support the small and medium firms. The reason being, many smaller firms do not have the capacity yet to maintain records precisely, as demanded by the new VAT law. The highest ceiling of turnover tax is also expected to be raised to BDT 15.0 million a year from BDT 8.0 million, as prescribed in the new VAT law framed in 2012.

Source:
http://www.thedailystar.net/business/vat-free-turnover-limit-likely-be-tk-36-lakh-1406803
http://www.newagebd.net/article/15786/vat-free-turnover-limit-to-be-tk-36-lakh

Kuala Lumpur to open up new area for Bangladeshi workers

The Malaysian government on Tuesday indicated they will open up new areas like mining for Bangladeshi workers, reports UNB. Secretary General of Malaysian Ministry of Foreign Affairs Ramlan Ibrahim shared the plan when he met Foreign Minister AH Mahmood Ali at his office. They will continue to recruit more workers from Bangladesh, he said. Both sides expressed satisfaction over the ongoing recruitment process of Bangladeshi workforce in Malaysia under ‘G to G Plus’ mechanism. Mahmood Ali stressed the need for maintaining transparency in the system and requested Malaysia to continue recruiting more workers from Bangladesh. He highlighted the advantages of investing in the Special Economic Zones being established by the government all over the country and encouraged Malaysian investors to come forward to invest there.

Source: http://print.thefinancialexpress-bd.com/2017/05/18/172721

US-BD TICFA talks skip crucial GSP revival issue

The third round of TICFA talks ended in Dhaka Wednesday without discussing the crucial issue of restoration of the generalised system of preferences (GSP) facility for Bangladesh’s products on the US market. However, US Ambassador in Dhaka Marcia Stephens Bernicat told newsmen that extending duty-free and quota-free market access is within the purview of US Congress which decides trade benefits. Commerce secretary (in-charge) Shubhashish Bose led the host side at the Trade and Investment Cooperation Framework Agreement (TICFA) meeting while US assistant trade representative Mark Linscott led the US delegation. Briefing the press after the daylong US-Bangladesh trade talks Mr Bose said the two sides discussed ways of expanding of trade and investment between the two countries.

Source:
http://print.thefinancialexpress-bd.com/2017/05/18/172754
http://www.dhakatribune.com/business/2017/05/18/dhaka-not-regaining-gsp-facility-anytime-soon/

Global unionists urge EU to probe GSP for Bangladesh

Global rights groups again called on the European Union to investigate Bangladesh’s GSP status as it failed to address the commitments regarding labour issues of Sustainability Compact. Citing last December’s Ashulia incident, they alleged that that Bangladesh showed anti-union behaviour last year. Industriall Global Union, UNI Global Union and International Trade Union Confederation (ITUC) with their European affiliates have evaluated the progress made in line with the Compact ahead of its today’s (Thursday) review in Dhaka. Earlier on January 18 last, the groups in a joint letter to the European Parliament made the same call. The Sustainability Compact was signed among the EU, Bangladesh, the US, Canada and the International Labour Organization (ILO) to improve labour rights and factory safety in the garment industry after the Rana Plaza building collapse that killed more than 1,100 workers in 2013.

Source: http://print.thefinancialexpress-bd.com/2017/05/18/172696

Bangladesh RMG sector to get 7m euro German grant

Germany will provide an amount of 7.0 million euro as grant to address the funding needs of the RMG factories in Bangladesh. The grant will disburse through KfW, a German government-owned development bank, (4 million) and GIZ (3 million) in this regard. Bangladesh and Germany Monday signed two bilateral agreements – Financial Cooperation (FC) and Technical Cooperation (TC) – on the financing of environment and safety retrofits in the readymade garment (RMG) sector, reports UNB Additional secretary (Europe Wing), Economic Relations Division, Ministry of Finance Muhammad Alkama Siddiqui, and German Ambassador in Dhaka Thomas Prinz signed the agreements respectively.

Source: http://www.thefinancialexpress-bd.com/2017/05/16/70502

China to become biggest investor in Bangladesh with Chevron acquisition

China is poised to become the biggest source of foreign direct investment (FDI) in Bangladesh with an imminent acquisition of US company Chevron’s local assets. Chinese envoy in Dhaka Ma Mingqiang made this observation Wednesday, adding that China’s overflowing funds are also already pouring into Bangladesh via different other offshore sources. According to the figures of the Chinese ministry of commerce, a total of USD 34.3 million was channelled from China into Bangladesh as foreign direct investment in 2016 while, according to Bangladesh government statistics, this figure amounted to USD 61 million. The Chinese envoy noted that even if the official figures are taken into account, the Chinese investment in Bangladesh had experienced very high annual growth in recent years.

Source: http://print.thefinancialexpress-bd.com/2017/05/18/172752

High land prices deter Chinese investors

High land prices, unavailability of adequate land and ransom by locals are the major factors driving away keen Chinese investors from Bangladesh, said Ma Mingqiang, ambassador of China, yesterday. “We see huge opportunities for investment in Bangladesh but many difficulties as well,” he said at the monthly meeting of the Foreign Investors’ Chamber of Commerce and Industry, held at the Westin hotel in Dhaka. The country should improve the investment climate and remove the barriers confronting foreign investors, he said, adding that China is mainly interested in Bangladesh’s infrastructure and export-oriented manufacturing sectors.

Source:
http://www.thedailystar.net/business/high-land-prices-deter-chinese-investors-envoy-1406797
http://www.newagebd.net/article/15788/land-infra-shortages-challenges-for-investment-in-bdesh-china-envoy

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