DT e-Paper 06 April 2017

DT
10
Business
THURSDAY, APRIL 6, 2017
CAPITAL MARKET SNAPSHOT: WEDNESDAY
DSE Broad Index 5,756.9 -0.3% ▼ Index 1,317.2 -0.5% ▼ 30 Index 2,139.2 -0.2% ▼ Turnover in Mn Tk 11,148.0 13.4% ▲ Turnover in Mn Vol 301.7 23.8% ▲
CSE All Share Index 17,851.4 -0.3% ▼ 30 Index 15,970.6 -0.1% ▼ Selected Index 10,829.4 -0.3% ▼ Turnover in Mn Tk 647.5 -25.1% ▼ Turnover in Mn Vol 20.2 -3.1% ▼
NBR: New VAT law to launch new era
• Shariful Islam
The National Board of Revenue
said the new value-added tax law
will launch a new era in the country’s
revenue collection.
The implementation of the law
will be “logical,” he said while
speaking at a pre-budget meeting
with the Economic Reporters Forum,
a body of the country’s economic
and business journalists,
yesterday.
NBR Member (VAT Policy) Jahangir
Hossain said: “By implementing
the new VAT law, the VAT
administration under the NBR will
become a full-fledged service-oriented
body and the businesses will
also get services more easily.”
ERF President Saif Islam Dilal
said the money laundering has increased
in recent years, leading to
decline in remittance inflow to the
country.
He urged the NBR to work along
with Bangladesh Bank to prevent
money laundering through Hundi
and over and under invoicing.
ERF General Secretary Ziaur Rahman
called to impose 5-10% additional
taxes on the companies which
are not listed with stock market despite
being capable to be listed.
Summit gets Maheskhali LNG terminal work
• Asif Showkat Kallol
NBR Chairman Nojibur Rahman speaks at a pre-budget meeting with the economic journalists yesterday
Among others, NBR Member (Tax
Policy) Lutfor Rahman and former
General Secretary of Jatiya Press
Club Quamrul Islam Chowdhury
were also present at the meeting.
NBR chairman said sweets will be
offered to taxpayers at the NBR offices
across the country on the occasion
of Bangla New Year, Pahel Baishakh.
The NBR will celebrate Halkhata, a
The government has awarded Summit
Corporation Limited the job of
setting up Bangladesh’s second
floating LNG terminal to be built in
Maheshkhali Island, Cox’s Bazar.
The Energy Division proposal was
approved at the Cabinet Committee
on Public Purchase, presided over by
Finance Minister AMA Muhith.
“Summit Corporation Limited
has got the work of the construction
of second floating LNG terminal,”
Additional Secretary Mostafizur
Rahman told journalist after
the meeting yesterday.
Summit signed the deal last
month for building the liquefied natural
gas (LNG) import terminal on
the offshore Island of Maheskhali.
The terminal, which will have
floating storage and re-gasificaiton
unit (FSRU), will be set up by Summit
and Singapore-based Exelerate
Energy jointly as equity investment
partners. According to the proposal,
Summit Corporation Limited
will develop the facilities on
build-own-operate-transfer basis.
The work will have to begin
within 18 months of the signing of
the final contract. It will facilitate
supply of around 500m cubic feet
natural gas per day.
The business group, which has
got big ventures in power sector, will
transfer the facility to Petrobangla
after 15 years of operation.
Under the proposal, the government’s
petroleum agency will pay
$0.45 to Summit for re-gasification
COURTESY
Bengali tradition of opening new accounts
on the first day of Bangla New
Year, Pahela Baishakh.
Halkhata was introduced in the
era of Mughal Emperor Akbar. •
of every thousand cubic feet of natural
gas. The Power Division has
also daily tariff reduction facilities of
$2756 from re-gasification and port
charges, according to the proposal.
The sum is 2.0 US cents less than
the rate to be charged by Excelerate
Energy ($0.47) from Petrobangla
under a similar contract signed on
July 18, 2016.
Petrobangla would have to pay
Summit every day around $2,500
less the amount to be taken by the
Excelerate Energy. •
Cash incentive
plan to Dutch
ship builder
cancelled
• Asif Showkat Kallol
Finance Ministry has cancelled a
plan to give a 10% cash incentive
to Vosta LMG-Karnaphuly Joint
Venture Consortium Ltd as the firm
does not use local raw materials to
produce ships, dredgers and water
machines.
The joint venture has already
taken bond facilities from Chittagong
Bond Corporate for importing
raw materials to manufacture
ships, dredgers and vessels.
It demanded a 10% cash incentive
on export of products, according
to the finance ministry.
Finance Minister AMA Muhith
said the Vosta LMG is no longer operaying
in Bangladesh.
The National Export Policy 2015-
18 says the use of local raw materials
and foreign investments are
treated as implicit exports and direct
sale of foreign exchange is one
of the implicit exports.
Vosta LMG-Karnaphuly Joint
Venture Consortium Ltd in its website
said it is operating as an implicit
exporter in Bangladesh, according
to finance ministry.
October 2014, the Vosta LMG and
Karnaphuly delivered a total of 15
dredgers to the Bangladesh Inland
Water Transport Authority and the
Water Development Board, which
are employed to keep the Bangladesh
waterway system navigable.
The Netherlands firm Vosta
LMG is a market leader in dredging
technology, product development,
engineering and contracting, dedicated
to serving the worldwide
dredging industry.
In addition to designing and
building complete dredgers, the
company is specialised in developing
and manufacturing dredging
components. •
Bond, debenture investment limit halved
• Shariful Islam
Bangladesh Bank has lowered the
limit of investment in a single company’s
bond or debenture by half
to reduce the banks’ risky investments.
The reduced limit of investment
is 5% against current 10% from the
banks’ total amount of paid-up
capital, share premium, statutory
reserves and retained earnings.
The central bank has issued a
circular in this regard yesterday
stating, “from now, bank-companies
cannot invest in a single company’s
bond or debenture from the
total amount of paid up capital,
share premium, statutory reserve
and retained earnings.”
The circular signed by BB General
Manager Abu Farah Md Naser
also said: “Bangladesh Securities
and Exchange Commission will
have to approve the bond or debenture
investment.”
But the sub-debt instrument of
the banks and companies will not
be under the circular.
Previously, the investment of
limit was fixed at 10%, as per section
26 (ka) of Bank Company Act
(Amendment) 2013.
Recently, Finance Division
rejected the proposal of issuing
bonds worth Tk4,100 crore for
three state-run banks including
BASIC Bank to meet their capital
shortfalls. •