United News of Bangladesh

The Bangladesh Restaurant Owners Association (BROA) on Friday urged the government to set a uniform Value Added Tax (VAT) rate for both restaurants and catering services and completely withdraw the proposed source tax on essential commodities in the national budget for the fiscal year FY2026-27. The association placed a 7-point charter of demands at a press conference held at its central office of the organization in the capital's Purana Paltan area on Friday morning. Reading out a written statement, BROA Secretary General Imran Hassan welcomed the initiative of the BNP government and Finance Minister Amir Khosru Mahmud Chowdhury to formulate a business-friendly budget amidst prevailing macroeconomic challenges, high inflation, and banking sector volatility. He, however, noted that soaring operational costs driven by spikes in electricity and LPG prices, coupled with high inflation, have pushed the restaurant industry into a deep crisis, which was not adequately addressed in the proposed budget. Expressing severe frustration over regulatory bottlenecks, Imran Hassan said, "It feels as if we are living in the Dark Ages (Ayyam-i Jahiliyya). There are only black laws and harassment everywhere."  He urged the newly formed government to ensure a harassment-free environment to keep businesses afloat. Presenting the demands, BROA proposed a uniform 5 percent VAT for both restaurants and catering services to eliminate existing market discrimination. Currently, restaurants pay 5 percent VAT while catering services are charged 15 percent. The association also demanded bringing all food establishments, including street food vendors, under the VAT registration net to stop unfair competition and boost government revenue. To alleviate the cost-of-living pressure on ordinary citizens, BROA urged the government to completely scrap the proposed 0.5 percent source tax and 10 percent supplementary duty on essential commodities. While thanking the government for offering a 60 percent depreciation benefit in the first year and 40 percent in the second year for new restaurant machinery outside Dhaka, the association requested the Ministry of Finance and Bangladesh Bank to issue special directives to financial institutions for providing low-interest loans to the sector. Refusing the Finance Minister's proposal to extend the VAT payment period to three months, the association demanded maintaining the previous system of monthly VAT payments and return submissions to ensure a smooth business workflow. Highlighting red-tape bureaucratic hurdles, Imran Hassan pointed out that a restaurant currently needs 10 to 12 separate approvals from various authorities to operate, which breeds harassment and escalates costs. To resolve this, the association demanded the immediate implementation of a "One-Stop Service" under an integrated compliance framework, the formulation of a specific industry policy for the restaurant sector, and making BROA membership mandatory for launching any restaurant business in line with the Trade Organizations Act. Among others, BROA Vice President Shah Sultan Khokon, Joint Secretary General Firoz Alam Sumon, and Organizing Secretary Towfikur Islam were present at the press conference.

The International Business Forum of Bangladesh (IBFB) on Thursday welcomed the proposed national budget for the fiscal year 2026-27, describing it as 'a positive and pragmatic roadmap' aimed at driving economic recovery, industrial expansion, and long-term structural reforms. Speaking at a press conference titled “Proposed Budget 2026-27: Expectations and Outcomes” at the National Press Club, IBFB President Lutfunnisa Saudia Khan noted that the budget sends highly encouraging signals to the business community. She lauded the government's strategic focus on boosting investment, industrialisation, Small and Medium Enterprise (SME) development, supporting women and youth entrepreneurs, expanding the digital economy, promoting renewable energy, and raising the tax-free income threshold. "The successful implementation of these targeted initiatives will play a critical role in attracting both domestic and foreign direct investment, creating new avenues of employment, and accelerating macroeconomic growth," the IBFB Chief said. While praising the budget's forward-looking direction, the forum underscored that the state must remain vigilant against major impending challenges. The IBFB president emphasized the need for prompt, effective policy interventions to manage ambitious revenue collection targets, tackle ongoing inflationary pressures, fix underlying structural weaknesses in the banking sector, and overcome state implementation capacity constraints. To guarantee smooth economic execution, the IBFB reiterated its core set of recommendations to the policymaking authorities, which include-complete digitalisation of the tax administration, sweeping structural reforms within the National Board of Revenue (NBR), lowering bureaucratic hurdles to drastically improve the ease of doing business, expanding accessible financing channels for the SME sector and accelerating the development of the local capital market while ensuring absolute policy continuity. During the question-and-answer session with journalists, former NBR Chairman and IBFB Life Member Dr. Muhammad Abdul Mazid pointed out that policy predictability and consistency are absolute prerequisites for maintaining an investment-friendly climate and ensuring long-term financial stability. The forum expressed its firm belief that with rigid implementation, adherence to good governance, and the execution of necessary fiscal reforms, the FY2026-27 budget will successfully fortify Bangladesh's journey toward sustainable development. Former IBFB President Humayun Rashid, Director M.S. Siddiqui, and Vice President Engr. Utpal Kumar Das were also present at the press briefing.

The amount of money deposited by Bangladeshi nationals and entities in Swiss banks has jumped 41 percent to 834.16 million Swiss francs, equivalent to about Tk 12,751 crore, according to the latest annual report of Switzerland’s central bank released on Thursday. The sharp rise comes on the heels of an unpreceded 33-fold spike recorded in 2024 when the amount of Bangladeshi-linked funds deposited in Swiss banks reached 589.5 million Swiss francs, or about Tk 8,800 crore, indicating a continuing trend of capital flight and asset shifting from Bangladesh to European tax havens. According to financial sector sources and the Swiss National Bank (SNB) data, the accumulated funds are held under both individual and institutional accounts. Economists and financial experts in Bangladesh note that while a portion of these deposits constitutes legal operational funds of commercial banks and non-resident Bangladeshis living in Europe, a substantial amount is widely suspected to be laundered wealth. Historically, funds deposited by Bangladeshis in Swiss banks reached an all-time record high of 871.1 million Swiss francs in 2021 before slumping drastically by 94 percent to just 55.3 million Swiss francs in 2022 and further sliding to 17.7 million Swiss francs in 2023, primarily driven by a domestic dollar crunch and changing global regulatory dynamics. However, the trend reversed drastically in 2024 when deposits surged over 33-fold to approximately 589.5 million Swiss francs, matching the period surrounding major political upheavals in Bangladesh, including the fall of the Awami League government on August 5, 2024 following a mass uprising. The latest 41 percent increase in Swiss bank holdings highlights the persistent challenges Bangladesh faces regarding capital flight. The Swiss government has previously expressed its willingness to cooperate with Bangladesh in tracing and repatriating illegally siphoned assets. In late 2024, Swiss Ambassador in Dhaka Reto Siegfried Renggli assured Bangladesh’s interim administration of full cooperation in identifying and recovering illicit assets held in Switzerland, provided international standards and procedures are strictly adhered to. Financial analysts estimate that over US$ 16 billion has been laundered out of Bangladesh annually in recent decades.

The Institute of Chartered Accountants of Bangladesh (ICAB) has unveiled its highly anticipated commemorative publication, “ICAB Coffee Table Book: Legacy in Motion,” chronicling the five-decade-long rich history, milestones, and contributions of the institute. ICAB President N K A Mobin FCA formally unwrapped the book at a ceremony held at the ICAB Auditorium in the capital’s Karwan Bazar on Wednesday evening, according to an official press release. The commemorative book, themed ‘Legacy in Motion’, encapsulates ICAB’s founding, journey, landmark achievements, and its profound impact on the evolution of the accounting profession in Bangladesh. It also shines a spotlight on the visionaries, past leaders, and transformative initiatives that have shaped the institution over the last 50 years. Speaking at the ceremony, ICAB President N K A Mobin FCA said, “This coffee table book is a reflection of ICAB's glorious heritage, professional excellence, and unwavering commitment to safeguarding public interest. It captures the vital milestones of our institute, which will inspire future generations of chartered accountants to uphold the highest standards of integrity, competence, and leadership.” Highlighting the historic value of the publication, ICAB Council Member and Chairman of the Editorial Board, Ala Uddin FCA, focused on ICAB’s core contributions toward the growth of the accounting profession and its broader role in driving the national economy. Former ICAB President Parveen Mahmud FCA and Council Member Mohammad Moin Uddin Riad FCA also spoke at the event, describing the book as both a historical document and an inspirational narrative brought to life through rich text, rare photographs, and archival documents. As part of its ongoing structural transformation, ICAB also inaugurated seven major digital automation initiatives during the event to streamline professional practices, student enrollment, and regulatory oversight: ICAB Infrastructure Modernisation: Upgrading physical and technological foundations. CA Connect: A dedicated mobile application for members and stakeholders. Clear Path: An automated professional clearance system. DVS Upgrade: Enhancements to the Document Verification System (DVS) to curb financial fraud. Smart Enroll: An automated student registration platform. Experience Hub: A digital portal to record professional training and experiences. CPD 360: An automated platform for Continuing Professional Development. Former presidents of ICAB, current vice-presidents, council members, and senior fellows of the institute attended the ceremony.

The Foreign Investors' Chamber of Commerce and Industry (FICCI) on Thursday urged the government to implement sweeping structural reforms, including automated tax administration and a broadened tax base to maintain a competitive investment climate ahead of Bangladesh's LDC graduation. While acknowledging the proposed national budget for the fiscal year FY2026-27 as positive and relatively predictable, the apex chamber of multinational companies emphasised that sustainable revenue growth will require a shift away from over-relying on compliant taxpayers. The observations were shared by FICCI President Rupali Haque Chowdhury at a post-budget press briefing held at the chamber’s office in Dhaka on Thursday. To address fiscal deficits without adding extra burdens on existing compliant businesses, FICCI emphasized that expanding the tax net must remain a top policy priority. The chamber recommended making the Proof of Submission of Return (PSR) mandatory for all license renewals, permit issuances, and VAT return submissions. It also called for a 360-degree cross-checking mechanism between suppliers' tax returns and withholding tax records to curb evasion. Presenting the detailed technical observations, FICCI Tax Consultant Snehasish Barua urged the National Board of Revenue (NBR) to adopt a comprehensive automation roadmap that fully integrates Customs, VAT, and Income Tax systems. As an immediate "quick-win" strategy to improve the tax-to-GDP ratio, the chamber proposed establishing a dedicated Data and Analytics Team within the NBR to analyze market share against revenue share across industries. FICCI voiced concerns that recurrent hikes in indirect taxes and supplementary duties have pushed the Effective Tax Rate (ETR) in several domestic sectors much higher than in competing economies. To retain and attract foreign direct investment (FDI), the chamber demanded a clear roadmap to optimize the ETR. Key recommendations included: lowering corporate income tax rates by reintroducing cashless transaction conditions for unlisted companies, transitioning the country to a fully cashless economy within the next five years, gradually reducing the minimum tax on sales and withdrawing inadmissible expense provisions, reviewing the Personal Income Tax (PIT) structure to cushion taxpayers against inflation and easing Trade and Customs Bottlenecks. In preparation for LDC graduation, the chamber underscored the need for urgent customs reforms to boost trade competitiveness. FICCI recommended assessing import duties based on actual transaction values or global reference benchmarks, simplifying customs clearance for capital machinery, and carrying out regular Time Release Studies (TRS) to speed up cargo clearance. The chamber also urged the government to withdraw the proposed Supplementary Duty (SD) increases on industrial raw materials and adopt a uniform, moderate price adjustment cap of no more than 15 percent across all industry tiers to maintain a non-discriminatory business ecosystem. Rupali Chowdhury also lauded the fiscal incentives announced for green initiatives and solar energy, noting that the forward-looking strategy would insulate the domestic power sector from global oil price volatility. However, pointing to the government's inherited inflation challenges, the FICCI chief stressed that while the target to cool inflation down from 9.5 percent to 7.5 percent is commendable, the government must provide a transparent, step-by-step implementation roadmap to achieve it. FICCI Vice President Mohammad Iqbal Chowdhury, Director Habibur Rahman Bhuiyan, and Executive Director T I M Nurul Kabir were also present at the briefing. Representing foreign investors from 35 countries, FICCI's 210 member companies currently generate around 30 percent of the government's internal revenue and represent over 90 percent of inward FDI in Bangladesh.

Women Entrepreneurs Association of Bangladesh (WEAB) on Thursday described the proposed national budget for fiscal year 2026-27 as timely, realistic and inclusive, saying it has been designed to address current economic challenges and ensure sustainable development. .The observation came at a "WEAB Budget Review Press Conference" held at Anchor Tower in the capital, where the organisation reviewed key aspects of the recently announced national budget, its potential impact, challenges and recommendations. Speakers at the event said the budget sets clear economic targets, including achieving 6.5 percent economic growth and reducing inflation to 7.5 percent. They noted that the budget places importance on creating new entrepreneurs, expanding small and medium enterprises (SMEs), strengthening social safety net programmes and building a foundation for long-term economic stability and sustainable development. WEAB President Nasreen Fatema Awal said the budget has been formulated with the goal of building an inclusive, equitable and participatory economy, with special emphasis on increasing the economic participation of women, youth and marginalised groups. She welcomed the allocation of Tk 400 crore in the information and communication technology sector for startup development, women entrepreneurs and youth entrepreneurship in the 2026-27 fiscal year, saying it would help enhance the capabilities of women entrepreneurs, expand businesses through technology and create new entrepreneurs. Nasreen also positively viewed the government's announcement of a Tk 60,000 crore incentive package aimed at increasing investment and employment. She said allocating a specific portion of the fund on easy terms for women-led SMEs, cottage industries, rural women entrepreneurs and new business ventures would further enhance women's contribution to the economy. Meanwhile, Prime Minister's Office National Cell member and technical expert on the 25 crore tree plantation programme, Jamail Basir JB, said the government plans to establish 10,000 nurseries and create employment opportunities for 600,000 people under a five-year programme to plant 25 crore trees. He said more than 400,000 of those jobs would be reserved for women, particularly from marginalised communities. "We want organisations like WEAB to work with us because it is difficult for us alone to reach all these women," he said. Jamail said rural women would be encouraged to establish small home nurseries with 50 to 100 saplings, which the programme would purchase from them, providing direct financial benefits. They would also be involved in tree plantation and maintenance activities, creating additional income opportunities. He invited WEAB to join the programme and help connect women from marginalised communities with the initiative. WEAB placed five recommendations before the government: ensuring effective implementation of separate quotas and easier collateral requirements for women entrepreneurs in bank loans and SME financing; launching special programmes at district and upazila levels to improve market access, e-commerce capabilities and product branding; expanding training on technology, digital marketing, export readiness and financial management; ensuring preferential participation of women entrepreneurs in public procurement; and reducing tax-related complexities and simplifying business registration procedures.

Bangladesh Jewellers Association (BAJUS) has for the first time determined the prices of gold ornaments inclusive of VAT under a new pricing system, setting the price of 22-carat gold ornaments at Tk 232,930 per bhori (11.664 grams), effective from Thursday morning. Following the government's proposal in the national budget for FY2026-27, the previous 5 percent VAT has been replaced with a fixed VAT of Tk 2,500 per bhori. As a result, the price of 22-carat gold ornaments has decreased by Tk 9,013 per bhori under the new method. The decision was taken at a meeting of the BAJUS Standing Committee on Pricing and Price Monitoring, and the revised rates came into effect from 10:00am on Thursday. Previously, on June 15, BAJUS had set the price of 22-carat gold at Tk 230,422 per bhori. After adding 5 percent VAT, the price of gold ornaments stood at Tk 241,943 per bhori. Under the new system, the price of 21-carat gold ornaments has been set at Tk 222,491 per bhori, reflecting a decrease of Tk 8,491. The price of 18-carat gold ornaments has been fixed at Tk 191,056 per bhori, down by Tk 6,920, while the price of traditional-method gold ornaments has been set at Tk 156,064 per bhori, a reduction of Tk 5,170. BAJUS said the new prices will remain effective at all jewellery shops until further notice. However, making charges will vary depending on the design of ornaments. As VAT has already been included in the selling price of gold ornaments, jewellers will not be allowed to collect VAT separately from customers. A decision regarding VAT on silver ornaments will be announced shortly. Although VAT-inclusive pricing has been introduced for gold ornaments, the previous VAT system will remain in place for silver. Customers will have to pay an additional 5 percent VAT on the fixed prices of silver ornaments. With the applicable VAT, the price of 22-carat silver ornaments will stand at Tk 5,365 per bhori, while 21-carat silver ornaments will cost Tk 5,132 per bhori. The prices of 18-carat and traditional silver ornaments have been set at Tk 4,432 and Tk 3,324 per bhori respectively.

The stability of Islami Bank Bangladesh PLC (IBB) is an indispensable element for the country’s overall economic health, said Mohammad Zahir Hussain, Executive Director of Bangladesh Bank and authorized representative for the bank's board affairs. "Islami Bank is a systemically important bank in Bangladesh's financial system. This institution is closely inter-related with the country's imports and exports, remittance, foreign trade, the businesses of millions of entrepreneurs, and the financial activities of crores of people," he said. He made the remarks as the chief guest during an exchange of views meeting with the officials and employees of IBB held at the Islami Bank Tower in Motijheel on Wednesday. Senior executives from the head office attended the meeting in person, while employees from branches across the country joined via a virtual platform. Reflecting on the challenges faced by the country's largest private commercial bank in recent times, the central bank representative assured employees that the institution's core strengths remain intact. "Over the past few years, this bank has faced various adverse situations. However, the real strength of an institution is never lost; that strength can be revived through proper leadership, correct guidance, and collective efforts," Hussain added. He noted that Bangladesh Bank has recently taken several critical and timely decisions to safeguard the country's overall financial stability. Moving forward under the central bank's guidance, IBBPLC's operations will be conducted entirely on the principles of professionalism, transparency, and accountability, he said. Hussain also revealed that the regulatory body is working toward forming a strong, efficient, and widely acceptable Board of Directors for Islami Bank in due course. He urged all officers to discharge their duties with the highest level of honesty and professionalism. The meeting was presided over by Md. Altaf Hossain, Acting Managing Director of Islami Bank. Additional Managing Directors Engr. Mohammad Jamal Uddin Mazumder and Dr. M Kamal Uddin Jasim also addressed the gathering.

Daraz has reaffirmed its long-term commitment to Bangladesh, saying it continues to operate normally and remains focused on sustainable growth, amid recent media reports regarding its investment and operational outlook. “Daraz remains firmly committed to Bangladesh and has no plans to exit the market. Bangladesh continues to be an important market for the company, and we are focused on sustainable growth and contributing to the development of the country’s digital economy,” it said in a statement on Wednesday. The company said some recent characterisations do not accurately reflect its strategic priorities or day-to-day operations. It said it remains committed to investing in technology-driven solutions aimed at improving operational efficiency and enhancing customer experience, while building a scalable and sustainable digital commerce ecosystem in the country. Highlighting its continued business momentum, the company said it onboarded more than 7,000 new sellers over the past year, reflecting the steady expansion of its marketplace and its ongoing efforts to create opportunities for local entrepreneurs and small businesses. It said the growth of its seller network has contributed to job creation and income-generation opportunities across the broader e-commerce ecosystem. The company added that, as part of regular business operations, it periodically reviews its organisational structure to ensure alignment with long-term strategic priorities and business objectives. It further noted that Bangladesh’s growing internet penetration and increasing smartphone adoption beyond major urban centres continue to create significant opportunities for the e-commerce sector. Daraz said companies with strong operational discipline and a long-term vision are well-positioned to capitalise on the country’s expanding digital economy and drive future growth.  

The local steel industry is facing a severe crisis that could push up the production cost of MS Rod by Tk 11,000 to Tk 12,000 per tonne, local steel manufacturers warned on Wednesday (June 17). The Bangladesh Steel Manufacturers Association (BSMA) attributed this looming price hike to the combined impact of recent power tariff hikes and the proposed hikes in VAT, customs duties, and taxes in the proposed budget for the fiscal year 2026-27. Speaking at a press conference at the National Press Club on Wednesday, BSMA President Mohammad Jahangir Alam said the direct and indirect production costs would ultimately be passed on to consumers, further dampening sales in an already struggling market. The association placed a five-point demand to the government to rescue the steel sector from the current crisis. Their demands include the withdrawal of the proposed additional VAT, duties, and taxes on the steel industry; cancellation of extra VAT at the sales stage and on local scrap; reconsideration of the additional taxes on raw materials; restoring the turnover tax to the previous 0.6 percent from the proposed 1.0 percent; and accelerating the implementation of the development budget to stimulate demand. Jahangir Alam noted that while the proposed budget includes some business-friendly initiatives, the new financial burdens make survival difficult for the industry. He revealed that while the country's annual demand for steel rods stands at around 50 lakh tonnes, the total production capacity exceeds one crore tonnes. As a result, most mills are operating at less than 50 percent capacity, which significantly increases overhead costs and puts immense financial strain on entrepreneurs. Detailing the cost hikes, the BSMA stated that recent electricity price hikes alone added Tk 1,800 to Tk 2,000 to the cost of producing each tonne of rod. Additionally, rising port fees, landing charges, and transportation costs are adding another Tk 3,000 to Tk 3,500 per tonne. Furthermore, the proposed budget’s higher taxes on ferro-alloys (crude alloys of iron), refractory materials, spare parts, and other inputs will hike costs by another Tk 2,000 to Tk 2,500. While these factors account for a direct production cost increase of Tk 5,000 to Tk 6,000, indirect pressures—such as dwindling market demand, underutilized factory capacity, higher overhead expenses, and rising bank interest rates—will slap on another Tk 5,000 to Tk 6,000 in costs per tonne, the steel leaders said. The BSMA president pointed out that large-scale infrastructure projects and work orders have remained stalled since August 5, 2024, as many previous contractors have gone into hiding or left the country, and many projects are stuck awaiting design approvals. He urged the government to swiftly release the development budget to keep the construction industry alive. BSMA Secretary General and Chairman of Rani Steel, Suman Chowdhury, criticized the fiscal strategy, noting that while the education budget was increased, the heavy tax burden on industries will stifle the job creation needed for the educated youth. He warned that many factories might default on their bank loans if the situation persists. Among others, Maruf Mohsin, Managing Director of Sonargaon Steels, and Zakaria, Director of CSRM, were also present at the press conference.