Bonanza for RMG makers: govt cuts export, corporate tax
The government has cut source tax on export earnings for readymade garment and other export-oriented sectors to 0.60 per cent from 1 per cent amid apparel makers’ hectic lobbying for the reduction. Corporate tax rate for apparel makers and exporters has also been reduced to 12 per cent from 15 per cent. NBR estimated revenue earnings worth around Tk 4,000 crore at the rate of 1 per cent from the targeted export earnings in the fiscal year of 2018-2019. Now, its total revenue earnings will fall short of the target by around Tk 1,600 crore, they said. The government set a target of earnings worth $39 billion from export of goods in the year. According to the SROs, the reduced tax rates will remain applicable only for the current fiscal year (2018-2019) which will end on June 30, 2019. Export tax rate was 0.70 per cent in the FY 2017-2018. The corporate tax rate for green building-certificate holding apparel companies, however, increased to 12 per cent from 10 per cent. As per the new SRO, the corporate tax rate for green factories has also been reinstated at 10 per cent. The government has considered the RMG exporters’ demand as it is the largest export earning sector as well as the largest employment provider in the country.
Khulna Power leads Dhaka bourse’s turnover chart
Top ten companies captured more than 38 per cent transaction of the Dhaka bourse on Tuesday while Khulna Power Company Ltd (KPCL) topping the list once again. In the last one month, its share price soared 79 per cent or Tk 54.70 each to close at Tk 107.70 on Tuesday. Its share price was Tk 68.90 on August 12. The power generation company’s share traded between Tk 53 and Tk 111.40 each in the last one year. According to statistics available with the DSE, about 5.78 million shares of KPCL were traded, generating a turnover of Tk 608 million, which was 8.51 per cent of the DSE’s total turnover. The total turnover on the DSE stood at Tk 7.14 billion which was Tk 9.65 billion on the previous day. Khulna Power, which was listed on the DSE in 2010, disbursed 55 per cent cash dividend in 2017. In 2016, it paid 75 per cent cash dividend. The company’s earnings per share (EPS) stood at Tk 1.21 for January-March 2018 as against Tk 1.40 for January-March 2017. In nine months for EPS was Tk 3.93 for July 2017-March 2018 as against Tk 3.91 for July 2016-March 2017. The company’s paid-up capital is Tk 3.61 billion, authorized capital is Tk 7.0 billion and the total number of securities is 361.28 million. The turnover of United Power was Tk 143 million. The company’s share price closed at Tk 307.60 each, losing 2.03 per cent.
Climate change: Access to cooling
The Sustainable Energy for All, a global initiative launched by former UN Secretary-General Ban Ki-moon September 2011 and based in Vienna and Washington, released its first-ever report in July last. Titled, Chilling Prospects: Providing Sustainable Cooling for All, report quantifies the growing risks and assesses the opportunities of the global cooling challenge. As per the report, Bangladesh may face immediate risk from lack of access to sustainable cooling as the country is at high risk of climate change impact. Nine countries have the biggest populations facing significant cooling risks. These countries across Asia, Africa and Latin America include: India, Bangladesh, Brazil, Pakistan, Nigeria, Indonesia, China, Mozambique and Sudan. There are over 1.1 billion people globally who face immediate risks from lack of access to sustainable cooling. All stakeholders should accelerate their innovation efforts and embrace a paradigm shift – thinking more holistically about the way we provide cooling, focusing firstly on reducing heat loads and then about how to deliver cooling affordably and sustainably. The developing countries, like Bangladesh, are bearing burden of excessive carbon emissions caused by industrialized countries, which are mainly responsible for global warming. Responsible countries must provide financial and technical support to climate change vulnerable countries aiming at tackling its negative impacts.
Keep spending on skills development: experts
Adequate and constant investment in human capital and skills development are the essentials to preparing the next generation for uncertainties of the future job market. Bangladesh Youth Leadership Centre (BYLC) in partnership with The Daily Star organised the discussion at The Daily Star Centre in the capital. It is crucial for Bangladesh to reduce reliance on readymade garments as an export and job creation engine because the sector will become more capital intensive and automated in the next few years. Bangladesh was putting emphasis on creating new economic zones, which would create a lot of jobs, the required skilled human resource for attracting foreign investors was not available here. “I have had discussions with some foreign banks. They want to invest in Bangladesh but they are concerned about having the right skills. BYLC’s online learning academy equips youth from different corners of Bangladesh with relevant skills of the 21st century.
FBCCI to fight for social welfare
The country’s apex trade body on Monday pledged to work for the welfare of the society. It also promised to launch tough movement against abuse of drugs, eliminate child labour and create awareness on autism. The decisions of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) were made at its standing committee meeting relating to the ministry of social welfare. The business leaders discussed to build a disciplined and livable society. They also underscored the need for following traffic rules to maintain a compliant transport system.
Japan to assess funding scope for five large infrastructure projects
Japan is set to field a fact-finding mission to assess whether it will extend loans to five large infrastructure projects in Bangladesh. In a recent letter to the Economic Relations Division (ERD), the Japan International Cooperation Agency (JICA) said the projects are still subject to consideration by the government of Japan. However, JICA did not make commitment to extend the loans for the projects under the 40th ODA (official development assistance) loan package for Bangladesh. Data shows that Bangladesh received 152.5 billion Japanese Yen (US$ 1.54 billion) worth of fund during the last Japanese fiscal year (April 2017 to March 2018), becoming the second-largest ODA recipient in Asia. The loan was 223 per cent higher than JPY 47.2 billion ODA, disbursed during the previous fiscal year (FY) of 2016 which ended in March 2017. Presently, Bangladesh government is implementing 33 development projects with financial support from JICA.
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)||$69.87||↑0.62||↑0.90%|
|Crude Oil (Brent)||$ 79.34||↑0.28||↑0.35%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.9366|
|GBP 1||BDT 109.1763|
|EUR 1||BDT 97.2573|
|INR 1||BDT 1.1524|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.