Local-Business
IBBL opens Sarail branch in Brahmanbaria
Islami Bank Bangladesh Limited (IBBL) inaugurated its 390th branch at Sarail in Brahmanbaria Wednesday (November 02, 2022).
Mohammed Monirul Moula, managing director and chief executive officer of the bank, inaugurated the branch as chief guest, according to a media statement.
Read More: IBBL holds Entrepreneurship Development Workshop
Islami Bank is a joint venture public limited company engaged in commercial banking business based on Islamic shariah.
Established in 1983 as the first Islamic bank in Southeast Asia, it is listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.
Read More: IBBL inaugurates Askar Dighir Par Branch in Ctg
FY22: Nagad hands Tk4.5 crore to postal department as revenue
Mobile financial services provider (MFS) Nagad handed over nearly Tk4.5 crore to the postal department as revenue share in the fiscal year (FY) 2021-22.
Posts and Telecommunications Secretary Md Khalilur Rahman received a cheque from Nagad Executive Director Md Shafayet Alam Wednesday in Dhaka.
Posts and Telecommunications Minister Mustafa Jabbar, Director General of the postal department Md Harunur Rashid, and Nagad Founder and Managing Director Tanvir A Mishuk were also present.
As per an agreement, the postal department is entitled to 51 percent of the total revenue earned by Nagad and the remaining 49 percent goes to the MFS.
Read more: Nagad holds 'Distributors Meet 2022'
Nagad gave the postal department Tk3.31 crore in FY21 and Tk1.12 crore in FY20.
Jabbar said: "Nagad has saved the country thousand crores of taka. From the very beginning, we were with Nagad. We are and will be with them."
"There is a huge difference between Nagad and Bkash's cash out charge, and that is thousand crores of taka. We thank Nagad for this. The country needs Nagad."
Tanvir said: "Every year we share our revenue shares with the postal department. According to the agreement between the department and Nagad, today we shared 51 percent of revenues with it."
Falling exports-remittances: Double blow to Bangladesh economy
The two major foreign exchange earning sources of Bangladesh- exports and remittances - fell in October due to slowdown in the global economy, which economists feared may pose new challenges for the country’s economy.
They said drop in exports means imports will be down at the same time. Though less imports may bring some slightly lessen the pressure on foreign currency reserves, the overall impact on economy won’t be good.
Professor Mustafijur Rahman, a distinguished fellow of think tank Centre for Policy Dialogue (CPD) told UNB that the domestic economy is closely related to the ups and downs of the global economy. So Bangladesh’s economy will definitely be affected by the new recession in the US and EU countries.
Read more:Remittances fall again in Oct, this time to 8-month low
Bangladesh should focus on increasing the flow of inward remittance as it will be a good source of foreign exchange earnings at this time.
Mustafij suggested increasing domestic resource mobilization and focusing on food production, which will help the economy to be resilient during the recession.
Dr Mohammad Abdur Razzaque, an economist specializing in applied international trade, told UNB said export earnings will not grow as the recession prevails in the US and EU markets.
He hinted that the domestic economy, including export and remittance targets would not be achieved considering the present situation.
“Our foreign exchange would not be affected severely as the demand for import is falling in the line of export, and the government should focus policy to save forex by cutting projects expenditure,” he added.
Bangladesh exported goods and services worth USD $4.356 billion in October due to the slowdown in the global economy and for adverse impact Ukraine-Russia war.
It shows the export earnings fell by 7.85 percent to USD $4.356 billion year-on-year in October. The export volume of October, in last fiscal year was $4.727 billion. It means the export income fell by 7.65 percent.
The export promotion bureau (EPB) published the export data of October on Wednesday (November 2).
Read more:Remittance: Bangladesh Bank tells banks to provide Tk 107 per dollar
As a result, after the last 13 consecutive months of growth in export earnings, in September and October this year, export earnings decreased for two consecutive months compared to the previous year.
Meanwhile, 12.87 percent of export income decreased in October 2022 beyond the target of the government.
The government's target for export earnings this month was USD $5 billion, whereas the country exported $4.356 billion. That is a fall by $64.33 crore. It is about a 12.87 percent fall.
People familiar with the development said that the export income of Bangladesh has started to decrease due to the shock of the Russia-Ukraine war.
Inflation has increased abnormally in the United States and European countries. Because of this, they have reduced the purchase of clothes. They have to spend a lot on food, which impacted Bangladesh’s export income.
However, traders, including ready-made garment owners, were already expressing apprehensions that purchase orders from the US and European markets would decrease for the new recession that was caused by the Russia-Ukraine war.
The inward remittance inflow to Bangladesh declined by 7.4 percent in October to USD $1.52 billion compared to the same month of last year. It is the lowest in last 8 months.
Chattogram Business Forum Dhaka begins journey
Chattogram Business Forum Dhaka has begun its journey formally to strengthen cooperation among businesspeople and contribute to the economy in a better way.
Land Minister Saifuzzaman Chowdhury joined the launching ceremony as the chief guest at a city hotel Tuesday night.
Convener of the Chattogram Business Forum Dhaka Moammed Nasir chaired the function.
Read more: Bangladesh urges ATPF to launch joint projects for mutual development
Filing of tax returns: November declared as service month
The National Board of Revenue (NBR) has announced November as the tax service month in a bid to facilitate the submission of tax returns for the year 2022-23.
Each of the income tax zones will provide services to taxpayers from November 1 to 30.
NBR Chairman Abu Hena Md Rahmatul Muneem made the announcement at a media briefing at the NBR office in Segunbagicha on Tuesday (November 01, 2022).
Read more: How to file your Tax Returns in Bangladesh
He said thirty-one tax zones with a total of 649 tax circles will receive income tax returns of their respective taxpayers until November 30 in a festive environment as part of the tax service month.
The website of each tax zone will contain various income tax-related forms, circulars, return filing guidelines, video tutorials, and other necessary information to help the taxpayers.
Under the management of Tax Zone-4, Dhaka, by setting up return acceptance booths and help desks at Bangladesh Secretariat and Officers Club Dhaka from November 1-14. The tax information will provide the same for five days on November 20-24 at the Planning Commission.
Read more: Tax return document not needed for loans up to Tk 20 lakh: NBR
For the Armed Forces, the tax zone would facilitate tax return submission and tax information services at Sena Malancha of Dhaka Cantonment on November 9-10.
An online income tax return filing system is also effective. Taxpayers can register in the system, can prepare returns, and submit. Taxpayers can file returns online by taking advice about e-return through hotline number 09612717171, said NBR.
New taxpayers can register, and existing taxpayers can re-register subject to providing the necessary information at the registration booth.
Read More: NBR counting losses for rampant tax evasion
Implementation of the e-TDS system is ongoing in all taxing jurisdictional authorities at the source. Taxpayers will be given Income Tax Returns, TIN applications, and Challan forms.
Taxpayers in Bangladesh can pay income tax online through e-payment.
In the last fiscal year, only 27 percent of taxpayers filed their yearly tax returns within the deadline of 30 November, which was extended by another month by the NBR.
Read More: Dhaka North residents can get 10% rebate on holding tax, arrears
According to NBR data, it received Tk2456 crore income tax from tax returns of 18.55 lakh individuals, which is over 6 percent year-on-year rise from last year's 17.48 lakh.
Novoair's Rajshahi-Cox's Bazar flights start November 17
Private carrier Novoair will operate flights on the Rajshahi-Cox's Bazar route from November 17.
The direct flights will leave Rajshahi every Thursday at 10:30am and will arrive in Cox's Bazar at 12pm.
Also, they will depart Cox's Bazar every Sunday at 3:35pm and will arrive in Rajshahi at 5:05pm, according to a media statement.
Read: NOVOAIR wins ‘Best On Time Performance’ award
One-way fare starts from Tk5,900, it added.
Novoair now operates daily flights from Dhaka to Chattogram, Cox's Bazar, Saidpur, Jashore, Sylhet, Rajshahi and Kolkata.
Reported suspicious financial transactions up by 62.32% in FY22: BFIU
Generally, a suspicious transaction report (STR) means a formatted report of suspicious transactions or activities where there are reasonable grounds to believe that funds are the proceeds of predicate offense or may be linked to terrorist activity or the transactions do not seem to be in the usual manner.
Despite strengthening monitoring to stop money laundering, STR has increased in Bangladesh by 62.32 percent in the fiscal year 2021-22.
Despite strengthening monitoring to stop money laundering, suspicious transaction report (STR) has increased by 62.32 percent in the fiscal year 2021-22.
Read: BFIU gets 3 months to sign legal pacts with 10 countries to bring back black money
According to a report of Bangladesh Financial Intelligent Unit (BFIU), a concern of Bangladesh bank, 8571 STR occurred in FY22; it was 5280 in FY21. In a fiscal year, STR has increased by 3291 or 62.32 percent.
Earlier in FY20, there were 3675 suspicious transaction reports while in FY19 such transactions were 3573, BFIU’s latest annual report said.
BFIU presented the details of the report during a press conference at Bangladesh Bank on Monday. The central bank’s Executive Director and BFIU head Masud Biswas shared the information with media.
Read: BFIU summons WASA chief Taqsem’s bank account details
He said not all suspicious transaction reports are crimes. “If there is evidence of any crime, we take action,” he said.
So far, action has been taken against clients and related parties of many banks and financial institutions, he said.
According to the BFIU report, banks have submitted a maximum of 7999 suspicious transaction reports in Bangladesh in the entire financial year. In the previous financial year, the banks submitted 4495 reports. Financial institutions submitted 106 reports. Exchange houses have submitted 457 reports.
Read More: Banks instructed to campaign for bringing back laundered money
Central Bank Executive Director and Spokesperson GM Abul Kalam Azad, BFIU Director Rafiqul Islam, and Additional Director Kamal Hossain among others were present at the press conference.
Visiting IMF team will meet BSEC to discuss capital market on Nov 7
The International Monetary Fund (IMF) will sit in a meeting with the Bangladesh Securities and Exchange Commission (BSEC) on November 7 to discuss issues including the current status of the capital market and the imposition of floor prices.
Bond market development, risk management and control, compliance infrastructure and enforcement measures in the market will also be discussed in the meeting, according to officials involved with the process.
Read more: Bangladesh Bank will go slow in calculating reserves following IMF formula
BSEC spokesperson Mohammad Rezaul Karim told UNB on Monday that the regulator is making all preparations for the meeting.
BSEC Chairman Shibli Rubaiyat-ul-Islam, Commissioners, and Executive Officers will be present in the meeting, he said.
To prevent the ongoing fall in prices, the BSEC floor price system was imposed on the capital market on July 28 this year.
Although its market is on the rise, two-thirds of the companies listed in the capital market are currently stuck at the floor price. Investors are not able to buy and sell shares of these companies despite their desire.
Read more: Talks for loan with IMF satisfactory, says central bank spokesman
As a result, the capital market transactions are continuously decreasing.
A delegation of the global lender IMF from Washington arrived in Dhaka on October 26 to discuss a $4.5 billion loan sought by Bangladesh amid dwindling foreign currency reserves.
Comfy brings 30 new comforters for winter
Comfy, the bedding brand of business conglomerate RFL Group, has brought 30 new comforters ahead of winter.
RN Paul, managing director of RFL Group, unveiled the new designs in Dhaka Sunday.
The comforters, made from "high-quality" raw materials using automatic machines, are now available across the country, according to a media statement.
Paul said: "The demand for comforters as an alternative to blankets is growing in our country during winter. Once, comforters had to be imported. But RFL always manufactures products keeping in mind the needs of the customers."
Kazi Rashedul Islam, executive director of Comfy, said: "Comfy comforters are now available across the country at Regal Emporium, Best Buy, Daily Shopping, Shwapno, Meenabazar and authorised shops."
"Customers can also order the products through online platforms, including othoba.com and Daraz.com, and get a 10 percent discount. The lowest price of a comfy comforter is Tk2,000 and the highest Tk2,500."
Bangladesh Bank will go slow in calculating reserves following IMF formula
The Bangladesh Bank has recently agreed to calculate reserves following the international standard as advised by the International Monetary Fund (IMF), but the process will be slow considering it as a national sensitive issue, an official said on Sunday (October 30, 2022).
As per IMF suggestions, the central bank must follow the standard where spending for export development fund (EDF), loan to Sri Lanka and financing domestic projects from reserves must be excluded.
An executive director of Bangladesh Bank, preferring anonymity, told UNB on Sunday that in principle, the central bank has decided to follow the global standards to calculate the amount for foreign reserves.
Read: IMF team in talks with Bangladesh Bank officials on $4.5 loan
“If the process is followed, the reserves will be reduced to $27.8 billion from $35.8 billion as declared earlier,” he said.
A visiting IMF delegation was informed that Bangladesh Bank has taken a policy decision to publish accounts in line with international standards.
However, as the matter is sensitive, it needs approval from the government high-ups on when it will start, he said.
In addition to following the IMF's procedures, the accounts on the basis of the existing procedures will also be published.
Read: Remittance fell in Sep due to exchange rate volatility: Bangladesh Bank
Sector insiders say most of the world's foreign exchange reserves are calculated according to the IMF's Balance of Payments and International Investment Position manual.
But Bangladesh calculates net reserves and total foreign exchange reserves when it publishes the amount for foreign currency reserves. Funds provided to various sectors including EDF are excluded from the net calculation. Bangladesh Bank publishes the gross or total account of reserves.
Earlier Bangladesh Bank spokesperson Abul Kalam Azad said the central bank agreed to follow the IMF's suggestions on various issues including foreign exchange reserves.
Read More: Bangladesh Bank yet to allow Indian rupee in foreign trade