United News of Bangladesh

Export-import between Bangladesh and India through Chapainawabganj’s Sonamasjid land port will remain suspended for seven days beginning from Saturday on the occasion of the holy Eid-ul-Azha to be celebrated on June 17. However, movement of travellers through the land port will continue as usual. Trade with India through Hili land port to remain suspended for 8 days for Eid-ul-Azha Harun-or-Rashid, president of Sonamasjid Land Port C&F Agents Association, confirmed the matter. The trade through the land port will resume from June 22, he said, adding that India’s Mahdipur Land Port Exporters Association was informed about the matter. Export-import through Hili land port suspended due to Upazila election

The Bangladesh Refrigeration and Air Conditioning Merchants Association (BRAMA) on Wednesday urged the government to reconsider the decision to impose higher duties on the import of Variable Refrigerant Flow (VRF) and Variable Refrigerant Volume (VRV) air conditioning systems and compressors. They argued that the increased duties will negatively impact businesses and consumers, reduce government revenue, and lead to higher electricity consumption. The organization made this call at a post-budget press conference held at a city hotel. The BRAMA called for the retention of the previous Harmonised System (HS) Code for duty for the sector. The association highlighted that the proposed budget for the fiscal year 2024-25 includes a substantial increase in import duties on central air conditioning systems (VRF/VRV), raising the rate from 11 percent to 60 percent under the new HS Code. BRAMA President Mohammad Asaduzzaman emphasised that VRF/VRV systems represent the most advanced, energy-efficient, space-saving, and environmentally friendly refrigeration technology available both in Bangladesh and globally. These systems have been imported for many years to serve various public and private sector needs. The association cited that the previous fiscal year's import duty was 11 percent, and the proposed budget would increase this rate to approximately 60 percent, a 49 percent duty hike. They warned that such a significant increase in tariffs would severely affect business operations, leading to potential revenue losses for the government. Asaduzzaman pointed out that the central air conditioning systems, typically 2,10,000 BTU (17.5 tonnes) per unit, are widely used in residential buildings, hospitals, commercial buildings, and government projects across the country. These units are designed for ease of use, space efficiency, and energy conservation due to their inverter technology. In contrast, the newly proposed 3,10,000 BTU (25.5 tonnes) units are larger, consume more power, and are not suitable for the same applications. The association expressed concerns that customers would be reluctant to purchase these larger units, leading to reduced demand, financial losses for traders, and decreased government revenue. Asaduzzaman also highlighted that approximately 100,000 people are directly involved in the sector, which has an annual turnover of Tk 20,000 crore, with 200 companies engaged in imports business. He stressed the need to maintain the previous HS Code to support the sector's continued growth and sustainability. Vice president Akram Hossain Boby, BRAMA directors Omar Sharif, Abu Sayed, Md Abul Hossain, advisor MA Sayed Babul and members Ali Rayhan and Biswanath Saha also spoke at the press conference, among others. The association concluded with an urgent appeal to the Prime Minister to reconsider the proposed tariff changes, emphasising the potential adverse impacts on the industry and the economy.

Bangladesh Bank (BB) on Tuesday instructed banks to keep open bank branches in adjacent cattle markets in Dhaka, Chattogram, and Nator for convenience of cattle market money transactions. The BB instruction stated to keep open the bank branches/sub-branches adjacent to Qurbani Cattle haat (market) under Dhaka South City Corporation, Dhaka North City Corporation, Chattogram City Corporation, and Singra Paurashava, Natore. 4407 cattle markets to be set up in country: Home Minister At the same time, the banking activities of these branches have been asked to be conducted till 10 pm. The regulator has given this instruction to facilitate the banking transactions of the sacrificial animal traders. The Banking Regulations and Policy Department (BRPD) of BB on Tuesday issued a circular in this regard and sent it to the managing directors and chief executives officers of scheduled banks for execution. The BB was also instructed to set up a provisional ATM booth in the market for sacrificial animals along with ensuring necessary security. Dhaka to have 22 cattle markets for Eid-ul-Azha 2024 In addition, instructions have been given to provide allowances to the officers and employees performing duties in extra time in the concerned branches, sub-branches, and booths as per the rules.

A nine-member delegation from China sought Bangladesh China Chamber of Commerce and Industry (BCCCI) 's assistance in facilitating the establishment of a Bangladeshi consulate office in Guangdong and a Chinese consulate office in Chattogram to enhance trade relations between the two countries. The delegation from the Guangdong Indo-Pacific Peace and Development Research Institute, led by Wu Guohua, Executive Director, and Gu Jianqing, former Vice Chairman of the Guangdong Federation of Social Sciences and Senior Research Expert on the "Belt and Road" Initiative of China, sought the assistance during their visit at BCCCI office. During the visit, Wu expressed his solidarity with Bangladesh and was deeply humbled by the hospitality of the Bangladeshi people. Highlighting Bangladesh's attractive investment environment, Al Mamun Mridha, Secretary General of BCCCI, emphasized the country's eagerness to welcome Chinese investments in various sectors, including Electric Vehicles, IT, AI, Pharmaceuticals, RMG, and the Blue Economy, among others. He noted that many businesspeople from Guangdong are already contributing positively to Bangladesh's development, citing the upcoming launch of one of Bangladesh's first digital banks with the assistance of Guangdong businesses. During an open discussion, the Bangladeshi side requested investments and knowledge sharing in construction materials, particularly pre-casting techniques, as well as in the RMG and steel sectors. The Chinese delegation expressed interest in investing in Bangladesh's IT sector, RMG, AI, and the reconditioned vehicle sector. Director of BCCCI, Khandaker Atiqur Rahman; Md. Shahidullah, Managing Director of Metrocem Group; a representative from Navana Real Estate Ltd.; and Office Secretary Md Abu Taher, attended the meeting.  

The much-anticipated Patenga Container Terminal (PCT) of Chattogram Port commenced operations today (June 10, 2024), marking a significant milestone for the port and the country. A container vessel, the Singapore-flagged ‘MAERSK DAVAO,’ anchored at the terminal this morning, initiating regular handling activities. Authorities anticipate the terminal will handle approximately 500,000 Twenty-ft Equivalent Units (TEUs) annually. PCT is the first terminal in Chattogram Port’s history to be operated by a foreign company, heralding a new era of foreign investment and operational models. This transformation has positioned Chattogram as a landlord port, a significant upgrade for Bangladesh’s maritime infrastructure. Ctg Port resumes partial activities after Cyclone Remal Six months ago, the Chattogram Port Authority (CPA) signed an agreement with the Jeddah-based Red Sea Gateway Terminal (RSGT) of Saudi Arabia. Following customs formalities and equipment installations, Red Sea Gateway Bangladesh Limited has now officially commenced operations. Omar Faruk, Secretary of CPA, confirmed that RSGT is fully prepared to manage container handling at the newly built terminal. According to the CPA, the new terminal will not only enhance the port’s capacity but also reduce the average stay time for vessels. Constructed at a cost of Tk 150 crore, funded by the port, the PCT features state-of-the-art facilities, including gantry cranes that significantly increase loading and unloading efficiency. Rear Admiral Md Sohail, Chairman of the Chattogram Port Authority, noted that it would take approximately 18 months for the terminal to become fully operational. The PCT was built on 32 acres of land near Chattogram Drydock Limited to Boat Club, with the foundation stone laid on September 8, 2017. The project, supervised by the 34 Engineer Construction Brigade of the Army, commenced construction in 2018, involving a total cost of Tk 1,230 crore. Parliamentary delegation explores Bangabandhu Sheikh Mujib Shilpa Nagar in Ctg With the new terminal, vessels will no longer need to wait at the outer anchorage for extended periods, as the Patenga Container Terminal can accommodate four vessels at once across its jetties. This increased capacity is expected to alleviate congestion and streamline operations at Chattogram Port.

The holy Eid-ul-Azha will be celebrated in Bangladesh on June 17 (Monday). Before Eid, Friday-Saturday weekly and Sunday are closed for Eid, on June 14, 15, and 16 are three consecutive days off. The bank will be closed during this time. However, Bangladesh Bank (BB) in a notification stated that on the occasion of Eid-ul-Azha, in order to facilitate payment of salaries and bonuses to the workers, employees, and officials working in the garment industry, and to facilitate the sale of export bills, banks have been asked to be kept open in the industry-related areas on a limited scale in the garment industry area. Banking hours to go back to 10am-4pm after Eid: Bangladesh Bank The notification states that bank branches in Dhaka metropolitans, Ashulia, Tongi, Gazipur, Savar, Bhaluka, and Narayanganj will be kept open on a limited scale on June 14-16 to make payment of garment workers' wages, bonuses, and other allowances. The BB also instructed to keep open bank branches in the Chattogram metropolitan and industrial areas to facilitate payment of garment workers’ and received export bills. Cash incentives to be provided for export-oriented leather product factories: Bangladesh Bank The central bank told banks to arrange adequate security in the bank branches with coordination of local administration.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sought policy support in the budget to survive the Ukraine-Russia war. BGMEA President SM Mannan Kochi said this while speaking at a post-budget press conference at the BGMEA Complex, Uttara on Saturday. He said to impose a tax on capital machinery import at the economic zone by 1.0 percent, VAT increase from 5 percent to 15 on energy saving bulbs, bonds license free hike Tk50,000 to Tk1,00000, import duty raise from 5 percent to 10 percent on steel building construction materials would be affected the businesses. The budget highlighted inflation as one of the major challenges in the budget speech several times, controlling inflation will be the biggest challenge in the next fiscal year, especially due to the decrease in foreign exchange reserves. “Although some policy support has been proposed for this major sector of foreign exchange earnings, we need to deal with the current difficult situation. The original proposals were not reflected in the proposed budget,” he added. Exports face challenges due to war and geo-political reasons and prices of export goods fell by 8 -18 percent, in these circumstances policy support is required for the industries. Mannan said the garment sector expected policy support in the budget, reducing the source tax by 0.5 percent, VAT exemption on incentive and receiving services for industries, 7.5 VAT wastage disposal, and 15 percent VAT withdrawal on recycle fiver supply. The budget raised taxes on various sectors related to manufacturing, which will contribute to increased production costs, the BGMEA President sought tax exemption in alternative ways to compete with global competitors of the RMG sector. BTMEA President Muhammad Ali Khokon, Executive President BKMEA Muhammad Hatem, and senior leaders of BGMEA, BTMEA, and BKMEA were present in the press conference.

The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) said private sector credit will be affected if the government takes the targeted loan in the proposed budget from the banking sector. FBCCI President Mahbubul Alam said this while speaking at a post-budget press conference at the federation building in Motijheel on Saturday. The proposed budget has fixed the government bank borrowing target at Tk1.37 lakh crore.   FBCCI calls on businesses to prevent supply of substandard fire safety equipment Excessive borrowing by the government from the banking system hinders the flow of credit to the private sector, with the government's needs 'crowding out', in economics language, the private sector players. When governments borrow, they compete with everybody else in the economy who wants to borrow the limited amount of savings available. "As a result, we fear that there may be an adverse impact on investment and employment," Mahbubul said. The FBCCI president said, “The government has adopted a zero-tolerance policy against corruption. We welcome this initiative. It is very important to maintain the quality of the work undertaken under the annual development program and to complete the work efficiently and on time.” Apart from this, efficiency should be taken into account in undertaking projects, so that the development becomes sustainable, he said. Mahbubul said, “We have given several proposals related to revenue for the budget for the consideration of the government. Several cases were considered but in some cases the reflection of the proposal was not observed.” FBCCI eager to boost trade between Bangladesh and Russia The FBCCI president said that the withholding tax on rice, wheat, potato, onion, garlic, beans, edible oil, sugar, and nuts has been reduced from 2 percent to 1 percent, which will help control inflation. “IT sector tax exemption extended. This will increase the investment in this sector. Several positive steps have been taken to protect and promote local industries, which will encourage the sector concerned,” he added. FBCCI President urges investment in industrialization  

The Foreign Investors Chamber of Commerce and Industry (FICCI) has welcomed the national budget for the fiscal year 2024-25 and emphasized tax reform and digital transformation of NBR. FICCI President Zaved Akhtar in a statement said, “We commend the government's efforts in crafting a comprehensive fiscal plan that addresses critical economic challenges while fostering a conducive environment for business growth.” He said with a keen focus on containing inflation, reducing aggregate demand, and nurturing the supply side of the market, this budget lays a strong foundation for stabilizing the economy. The budget outlines several measures to control inflation and stabilize the economy, including tightening monetary policy by raising interest rates to 8.5 percent. The Standing Lending Facility (SLF) and Standing Deposit Facility (SDF) rates have been set at 10 percent and 7 percent, respectively, to curb inflation by reducing money supply and encouraging savings, Zaved said in the statement. Additionally, substantial investments aim to boost agricultural productivity by 20 percent and industrial output by 15 percent through technological advancements and infrastructural improvements. This is expected to balance demand and supply, thereby stabilizing the economy, he said. The chamber appreciates the following proposals made in the proposed budget. However, “We believe that there are some issues which should be addressed.” A standout feature of this budget is its progressive business-friendly approach, focusing on reducing costs for consumers. The emphasis on a predictable tax system is appreciated, meeting long-standing demands. The introduction of a prospective corporate tax rate enables accurate tax planning for businesses. The proposal to reduce the corporate tax rate for companies not listed on the stock exchange from 27.5 percent to 25 percent, subject to compliance with cash transaction conditions, is commendable. It is expected that the proposal to reduce the tax rate will encourage private investment.

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has expressed concerns over the government’s recent decision to increase the supplementary duty on mobile services by an additional 5%, raising the total from 15% to 20%. This move is anticipated to create significant challenges for both the telecom industry and mobile subscribers, according to an AMTOB statement on Thursday. This increase in duty will elevate the cost of voice and internet services, placing additional financial pressure on users, particularly those from marginalised communities. The organisation warned that this could potentially lead to decreased mobile service usage, which would negatively impact businesses and reduce government revenue. Additionally, the  statement said the higher VAT on SIM cards is expected to discourage new users, further slowing the growth of mobile connections in a country where 45% of the population remains unconnected. AMTOB stressed that these measures will hinder the overall digitisation of the country, adversely affecting GDP growth and contradicting the Smart Bangladesh Vision of the Government. In light of these concerns, AMTOB urged the government to reconsider these duties and take into account their earlier telecom budget recommendations to support the industry and ensure continued progress towards a digital Bangladesh.