business
Policy support needed in budget for import-alternative industry in Bangladesh: FBCCI President tells ERF discussion
Dhaka, June 7 (UNB)-FBCCI President Md Jasim Uddin on Wednesday urged the government for policy support in the budget to extend import-alternative industry in the country to curtail import pressure on foreign exchange.
He made the statement in a post-budget discussion organised by Economic Reporters’ Forum (ERF) jointly with RAPID and Asia Foundation, held at the ERF auditorium in Dhaka on Wednesday. Planning Minister MA Mannan was present as the chief guest in the function.
Also read: Ensure energy, power supply to keep industrial production running: FBCCI
He said Bangladesh manufactures many products, and industrial raw materials and exports them, which were imported earlier due to tax waivers and policy support. But in the proposed budget, there is no direction to reduce pressure on the dollar.
Massive import control initiatives will affect industrial production, he said adding that Bangladesh Bank’s move only to cut imports is not a solution for reducing stress on the dollar.
Also read: Budget ambitious but business-friendly: DCCI
Jasim blamed that banks are taking Tk114/115 per dollar from the traders and regretted that there is no institution to look into the matter.
He said in the proposed budget, the target of the 8th 5-year plan for increasing private investment and creating skilled manpower have no reflection.
Also read: NBR-private sector partnership crucial to achieve high revenue target: DCCI President
Having energy and power at an affordable cost is the most important element to increase investment, he said.
But businessmen are not getting gas even after paying a higher rate of Tk30 per unit, he said. “This is not an investment friendly situation.”
The government built science and technology universities aiming to create skilled human resources as per the requirement of competitive industries, but those universities turn into general universities, the FBCCI president said.
The government is allocating funds for research in the budget, but businessmen do not know who and where research is happening, and research without connection with the industries would not bring any desired result, he said.
The FBCCI president also said that there is a task force consisting of FBCCI and NBR to discuss various problems and complaints, but they do not sit together.
“200 percent fine is levied for mistake in HS code on import of goods, 20 percent of which is received by tax officials, which increases the harassment of businesses,” he said.He said the budget set a higher target for revenue collection, but there is absence of a detailed plan on where and how the revenue would be collected.
Apart from this, the FBCCI President said that increasing the capacity of NBR is very important.
He said that in digital Bangladesh, NBR should also be digitised and income tax and VAT should be collected digitally.
Dr Mohammand Abdur Razzaque, Chairman of Research and Policy Integration for Development (RAPID), professor of DU Abu Eusuf, Kazi Faisal Bin Seraj, Country representative Asia Foundation, BUILD CEO Ferdous Ara Begum, Shawkat Hossain Masum, head of online, Prothom Alo, among others, spoke at the function.
ERF president Mohammad Refayet Ullah Mirdha presided over and Secretary Abul Kashem moderated the program.
HSBC-KGDCL ink deal for online collection solution
The Hongkong and Shanghai Banking Corporation Limited and Karnaphuli Gas Distribution Company Limited (KGDCL) in Chattogram have recently signed an agreement to offer Bill Collection Solution for KGDCL’s consumers.
The signing ceremony was held at the KGDCL’s head office in Chattogram. This proposition provides more efficient and cost-effective collection modality for KGDCL and HSBC’s customers.
HSBC is the first foreign bank to integrate with KGDCL in Bangladesh with innovative API (Application Programming Interface) based branch collection proposition.
The proposition model will aid KGDCL to validate their consumer collections against their record through API and to reconcile efficiently. This will facilitate KGDCL consumers to avail best-in-class services from HSBC Branches while paying KGDCL bills.
Read: BPDB seeks revised agreement with Adani before importing power from Jharkhand plant
The KGDCL, which is responsible for distributing gas in Chattogram and the hill tracts, is a concern of state-owned Petrobangla. The solution will support KGDCL with improved visibility and control over their industrial and commercial Customers’ gas bills.
Engr. MD. Rafiqul Islam, managing director of KGDCL, said, “We are extremely pleased to partner with HSBC Bangladesh as the first foreign bank with the vision to shift towards digitalised collection platform and sustainable nation”.
He said the KGDCL will look forward to strengthen the relationship with the leading international bank and welcomes new innovations for countries development goal for smart Bangladesh.
Read: Indian govt denies knowledge of Bangladesh seeking revised deal with Adani
Gerard Haughey, country head of wholesale banking at HSBC Bangladesh, said, “HSBC is constantly developing innovative cash management solutions through its secured digital banking platforms for its valued customers”.
He said their API based receivables solution provides seamless connectivity between HSBC’s and KGDCL’s systems and enables increased business agility across the broader ecosystem.
“HSBC is very keen to collaborate with KGDCL to increase the capacity of the gas supply network which will help accelerate industrialization in Bangladesh,” he said.
Gerard and Engr Rafiqul Islam inked the deal on behalf of their respective organisations.
Also, Devesh Mathur, chief operating officer of the foreign bank and other senior officials from KGDCL and HSBC attended the signing ceremony.
Read more: $4.5 billion loan: IMF reaches preliminary agreement with Bangladesh
Import of Reconditioned vehicles fell 75 percent for dollar crisis: BARVIDA
Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has said the import of reconditioned cars has fallen by 75 percent in the last six months due to LC complications caused by the dollar crisis.
President of the organization Habib Ullah Don said this at a press conference on the proposed budget for the financial year 2023-24 at the Dhaka Club on Tuesday.
He said most of the traders who deal with brand-new cars are directors of several banks. As a result, they do not face any problems in opening LC (letter of credit).
Also read: BARVIDA for rationalising `vehicle registration fee’, abolishing ‘dual registration system’
“But the traders, who import reconditioned cars for the middle class, have no bank. So due to the dollar crisis, they face a problem opening LC,” he said.
“Impact of this, only 2800 reconditioned cars have been imported in the last six months, where usually 10,000 to 12,000 cars are imported in six months. As a result, car imports have decreased by 75 percent,” BARVIDA president Don said.
Appealing for the withdrawal of supplementary duty on electric vehicles, he said the country is going through very challenging times due to the availability of fuel and the scarcity of foreign exchange.
Also read: These are the Top Super Luxury Cars for 2023
“The problem slightly will be relieved by increasing the import and use of electric cars. Withdrawing 20 percent supplementary duty on import of electric vehicles to protect the environment and save foreign exchange,” Don said.
At the same time, this car dealer also requested that the registration of electric vehicles should be completed within a day.
Habib Ullah Don said in response to a question that whether it would be logical to increase the import of electric cars in the current electricity crisis, that this crisis is temporary.
DSE urges tax exemption on earned interest in bond market
The Dhaka Stock Exchange (DSE) on Tuesday urged the government to consider its 6-point proposal on the budget for the fiscal year 2023-24, to encourage investment.
DSE Board of Directors Chairman, Professor Hafiz Hasan Babu made the call from a 'post-budget press conference' at a hotel in the capital on Tuesday.
The proposals are tax-exemption for earned interest on bonds, to reduce the tax gap between listed and non-listed companies to 10 percent, reduce VAT from 15 percent to 10 percent for companies in the capital market, reduce the tax gap to 10 percent for stock exchange SME companies, and reduce tax at source on broker houses’ transactions.
Also Read: DSE seeks inclusion of four points to facilitate investors
In a written speech at the press conference, DSE Chairman said that currently, the size of the corporate bond market is very small which creates limitations in the capital market as well as in the financial market.
Also Read: DSE market capitalisation increased by Tk4.5 lakh crore in 2022
“A well-functioning bond market can help the economy in several ways. Exemption of tax on interest in all types of bonds would encourage creating a strong bond market," he said.
Grameenphone plans to reduce 50% carbon emissions by 2030
Grameenphone has announced to reduce 50 percent carbon emissions by the year 2030.Grameenphone has reaffirms its commitment to environmental sustainability and finding green energy solutions to combat climate change. It brought together public and private experts and diplomatic community to discuss the "Green Energy Ecosystem in Bangladesh" at the GP House on Monday, according to a press release.
Also read: Grameenphone Academy Night celebrates future-ready skilled generation
Grameenphone is devoted to continuous deployment of enhanced sustainable solutions, protecting the environment and promoting an energy-efficient and eco-friendly business approach. The organization has set a target to reduce 50% carbon emissions (CO₂) by 2030, taking 2019 emissions as the baseline, it said.
The company has so far converted around 1200 towers into solar energy powered sites in remote places ensuring connectivity in the most unconnected regions, it added.
Also read: Grameenphone reports revenues of Tk 37.3 bn for Q1 of 2023
“According to Germanwatch’s 2021 Global Climate Risk Index (CRI), we are vulnerable to both disasters and climate change and Bangladesh is ranked the seventh extreme disaster risk-prone country in the world,” said Yasir Azman, CEO of Grameenphone.
“Deploying solar powered towers is a steppingstone towards co-creating a greener future. It will significantly reduce carbon dioxide emissions from our operations and help overcome the electricity supply problem,” he said.
“As an early adopter of green initiatives in Bangladesh, we are committed to reducing our carbon footprint with a comprehensive set of initiatives. I believe if private sector organizations are given opportunity to procure more renewable energy utilizing the gridlines, it will encourage more green energy investments into the country and enable us to achieve our national ambition,” he added.
Also read:Grameenphone users can now pay for 32 government services
Espen Rikter-Svendsen, ambassador of the Royal Norwegian Embassy in Dhaka; Md Shahriar Ahmed Chowdhury, director of the Center for Energy Research, UIU; Nazneen Ahmed, country economist at UNDP spoke at the programme, among others.
Ensure energy, power supply to keep industrial production running: FBCCI
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country's apex trade body, urged the government to ensure adequate supply of power and energy to industries through optimal utilization of financial allocations.
It also called for keeping the coal-based power plants in operation, and expanding use of renewable energy in order to provide an uninterrupted energy supply to factories.
The FBCCI president Md Jasim Uddin made this call in a press conference organized on the proposed budget for the fiscal year 2023-2024, at the conference hall of the federation's own premises in Motijheel on Saturday.
At the same time, he also called for the withdrawal of VAT on raw materials with an emphasis on renewable energy.
FBCCI President said, "Industrial production should be kept active to ensure revenue generation for the government. So, there is no alternative to an affordable and uninterrupted energy supply."
He urged that the government should be more strategic in allocating financial resources to the power and energy sector with special importance.
In the proposed budget, the government will borrow Tk1.55 lakh crore from internal sources to meet the budget deficit. Out of this, Tk1.32 lakh crore will be borrowed from the banking sector.
FBCCI President Jasim pointed out that this borrowing will create a barrier to the flow of credit to the private sector.
In such a situation, he requested the government to consider the cost of funds and obtain financing from foreign sources at the lowest possible interest rate, instead of the banking sector.
Tea industry must provide its workers with welfare: Commerce Minister
Commerce Minister Tipu Munshi has urgedplm all concerned, including tea garden owners, to build a worker-friendly tea industry.
He made the call at a press briefing organised byq Bangladesh Tea Board at the Tea Resort and Museum conference room at Sreemangal in Moulvibazar on Saturday afternoon.
Also read: Tea production increasing by 5 percent each year: Commerce Minister
This year, the main event of The National Tea Day has been organized at Sreemangal in Moulvibazar, known as the capital of tea, with the direct stakeholders including tea garden owners and workers associated with the tea industry, said the minister.
The commerce minister then announced the names of the awardees in eight categories of the “National Tea Awards” launched for the first time in the country.
Here is the full list of the winners:
1. Highest producing tea garden per acre: Rented tea garden. 2. Highest quality tea producing garden- Madhupur tea garden. 3. Best tea exporter- Abul Khair Consumer Products Ltd. 4. Best Small Tea Grower - Md Anwar Sadat Samrat (Panchagarh). 5. Best tea garden for workers welfare - Jerin Tea Garden. 6. Best organization/company - Kazi and Kazi Tea Estate Limited on the basis of marketing of diverse tea products. 7. Best tea company - Green Field Tea Industries Limited on the basis of beautiful and quality tea wrapper. 8. Best tea leaf chooser (tea worker) - Uplakhi Tripura, Neptune Tea Garden.
The awards will be distributed later.
Also read: Avoid excessive buying to keep markets stable: Commerce Minister
During the program, the minister while replying to a question from a journalist, said necessary measures are being taken for the extraction, production and marketing of tea leaves keeping the quality of tea intact Special surveillance is being maintained in this regard, he added.
About the reason for the increase in tea production, the commerce minister said tea production is more than before in the tea gardens in the country.
Besides, tea is being produced in the northern part of the country, especially Panchagarh, with almost19 percent of the total production. Due to this, tea production is increasing day by day in the country.
At present, there is a demand for 90-95 million kg of tea in the country. The commerce minister said demand can be met through tea produced in the country. The country is expected to produce more than 100 million kg of tea this year, he said.
Chairman of Bangladesh Tea Board Major General Md Ashraful Islam NDC, PSC, senior officials of the ministry and heads of various institutions under the Ministry of Commerce were present on the occasion.
DSE seeks inclusion of four points to facilitate investors
The Dhaka Stock Exchange (DSE), the country's main bourse, has reacted to the finance minister's proposed budget by placing four recommendations specific to the country's capital markets with a view to develop them further.
The DSE placed its demands via a press release dated June 3 (Saturday). These are tax exemption on earned interest from bonds, treatment of tax at source on dividend income as full and final settlement, reducing the tax at source for stock exchange stakeholders, and concessional tax rate for listed SME companies.
DSE Deputy General Manager Shafiqur Rahman issued the press release on behalf of DSE Chairman Professor Dr Hafiz Md. Hasan Babu stating that the government has taken measures and implemented various reforms, with an aim of globalizing the capital market.
DSE Chairman congratulated Finance Minister AHM Mustafa Kamal for maintaining the capital market-friendly policies of the previous year's budget. He urged to continue the capital market's supportive ecosystem and overall efforts to improve the facilities and bring them up to the international level in the proposed budget, as per the expectations of investors.
Consideration and inclusion of its four demands in the 2023-24 budget can make the capital market more vibrant and investment friendly, DSE believes.
Nagad welcomes govt’s move to increase safety net allocation
Nagad has welcomed the government’s move to increase the social safety net allocation in the national budget for the fiscal year 2023-2024.“This timely move will give poor people some relief during this tough time. Digital disbursements of such funds are done promptly while ensuring transparency,” said Tanvir A Mishuk, founder and managing director of Nagad Limited, according to a press release.“From the beginning Nagad had been the first choice for the government in disbursing government allowances, education stipends and other cash aid as we ensured transparency by plugging all anomalies, " he added.Finance Minister AHM Mustafa Kamal has proposed a budgetary allocation of BDT 1,26,272 crore in the next fiscal year for the social security programmes, up by a little over 11 percent from the current fiscal year’s BDT 113,576 crore. In this way, the size of social security allocation will be 16.58 percent of total budget allocation and 2.52 percent of GDP.The finance minister has also proposed increasing beneficiaries by more than 8.5 lakh, which is a very timely move to give breathing space to the poor who are grappling with rising costs of daily necessities. He has also proposed that monthly allowances be raised by BDT 50 to BDT 200 in different categories of safety net allowances, read the budget documents.In 2021 and 2022, Nagad successfully disbursed 75 percent of all the social safety net allowances, such as old-age allowance, widow allowance, allowance for the underprivileged with special needs and students with special needs, Bede community development allowance and transgender community development allowance, the release added.Besides, Nagad also disburses 100 percent of primary education stipends, stipends under the Prime Minister’s educational assistance trust, tea garden workers’ living standard allowance, backward community development allowance, disabled allowance, and others, it also said.
Bangladesh working to secure strong position as high-value garments sourcing hub: BGMEA chief
Bangladesh is working to secure a strong position as a trusted sourcing hub of high-value garments in the world, said Faruque Hassan, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
“Our industry’s vision is to move to the next level with product diversification alongside scaling up capabilities with technology upgradation, productivity enhancement and skill development,” he said.
“The transition from volume to value and quantity to quality will not only increase our export earnings but also will enhance image of Bangladesh in the world,” he observed.
He made the remarks while addressing at the annual general meeting and get together of Bangladesh Garments Washing Technologist Foundation (BGWTF) in Dhaka on June 1.
Md. Abdus Samad, President of BGWTF, presided over the program.
In his address as the chief guest, Faruque Hassan said, “The apparel industry of Bangladesh is putting efforts to diversify from basic to high-value products, especially garments made of manmade fibre (MMF) while emphasis is also given to value addition.”
At the same time the RMG industry is also making efforts to ensure its growth in a sustainable way since the global demand for circular fashion is increasing worldwide, he said.
In order to remain competitive in the global market, Bangladeshi factories are investing in upgradrating technologies and skill development to make production process more efficient and productive, he added.
The BGMEA President called for collective efforts of all stakeholders to make the vision of the industry into a reality.