Prime Minister's Advisor Salman F Rahman critisizes National Board of Revenue

The Prime Minister's Private Industry and Investment Advisor Salman F Rahman said that National Board of Revenue (NBR) is taxing those within tax net more, while others left untouched. Further criticising the NBR, he said, "The policy that the NBR has been following does not really deserve praise; if it did, our tax-GDP ratio would not be decreasing; it should be increasing.

The National Board of Revenue (NBR) is the Central Authority for Tax Administration in Bangladesh. It was established in 1972 through the National Board of Revenue Order, 1972. Later, the structure of the National Board of Revenue was amended through Act No 12 of 2009 It is a Statutory Authority attached with the Internal Resources Division of Ministry of Finance. NBR is the Authority for Tax Policies and Tax Laws in Bangladesh. NBR collects almost 97% of Tax Revenue and almost 85% of total Revenue for the Government of Bangladesh.

"We need to reverse this trend by widening the tax net and lowering the tax rates; this is the only way to increase revenue," he said while addressing the inaugural ceremony of 29th Annual US Trade Show at the InterContinental Hotel as the chief guest. Further criticising the NBR, he said, "The policy that the NBR has been following does not really deserve praise; if it did, our tax-GDP ratio would not be decreasing; it should be increasing."

He also said, "One of our major challenges is the tax and VAT regime; we need to change our tax regime as our tax-GDP ratio is the lowest in South Asia".

Compared to last year, this year the tax ratio has declined. In October 2023, the National Board of Revenue failed to impress the International Monetary Fund with its plan to raise taxes.

Nation’s apparel industry is rebounding

Salman F Rahman, Bangladesh’s Prime Minister’s advisor for private industry and investments, stated that the nation’s apparel industry is rebounding quickly from the Covid pandemic and the Russia-Ukraine conflict. Under Prime Minister Sheikh Hasina’s direction, the Government also plans to broaden economic opportunities in Bangladesh due to the increased stability and ongoing progress that have been established since its return to power, he stated.

Salman made this statement at a meeting he had at his office with Andrea Albright, the executive vice president of Walmart. Paul Dyke, vice president of Walmart’s business diplomacy and global affairs, was also among the high-ranking people in attendance. Salman urged Walmart to collaborate with Bangladesh to produce apparel composed of synthetic fibres alongside natural fibres. In response, Walmart’s delegation expressed their interest in working together in this regard.

Salman added that a large number of Bangladeshi textile companies had passed the strictest testing requirements in the globe. As a result, the nation’s apparel industry is rebounding quickly. According to Andrea Albright, Bangladeshi apparel is well-known worldwide. Walmart has been a national importer of apparel for a considerable amount of time. She stated that the buying organisations should have a proper part in adhering to the compliance in addition to the production.

Bangladesh’s textile and garment industry is a major contributor to the country’s economy, and it is a vital player in the global textile and apparel market. In the fiscal year 2021-2022, Bangladesh exported garments worth US $42.613 billion, making it the second-largest apparel exporter in the world (Export Promotion Bureau data). In addition, the garment industry is also a significant source of employment and income for Bangladesh, with more than 4 million people (about twice the population of New Mexico) working in the sector. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reported that in the first eight months of 2022, BD ready-made garment (RMG) exports totaled $29.825 billion, up by 38.39% compared to the same period in the previous year.

The United States is the largest export destination for Bangladeshi garments, accounting for around 21.50% of total exports. The European Union (namely Spain, Germany, Italy, France, Belgium and Netherlands) is the second-largest export destination for BD apparel, followed by UK and Canada.

Bangladesh’s textile and garment industry is forecasted to continue growing, and it is expected to account for more than 10% of the global market by 2025, according to BGMEA. The industry is also set to benefit from the ongoing shift in global sourcing patterns as more and more countries look to diversify their supply chains.

As per Sri Lankan financial services firm CAL Bangladesh, Bangladesh’s apparel sector will see a short-term dip in 2023 but a strong rebound is expected in 2024 which will help the sector’s exports reach US $56 billion by 2026.

Two projects completed by Beximco Group

Beximco Group completed two projects financed by its Shariah-compliant bond fund—Green-Sukuk Al Istisna’a.Teesta Solar Limited’s power plant with a capacity of 200 MW utilised the full Tk1,881.80 crore allocated from the Sukuk Fund and successfully started commercial operations on January 8, 2023. Meanwhile, the textile division’s expansion project, which is the second project, utilised the full Tk 805.90 crore allocated from the fund and has successfully commissioned the textile machinery arranged through financing and refinancing, as per a Dhaka Stock Exchange (DSE) filing. It has enhanced the textile division’s capacity in spinning, denim, yarn dyeing, knitting, printing, and washing units, as per the filling.

Beximco also informed the same day its third project – Korotoa Solar Limited’s 30 MW Solar Project located at Tetulia in Panchagarh – is currently under construction and will fully be operational by June 2024.

On July 8, 2021, the Bangladesh Securities and Exchange Commission (BSEC) gave approval to Beximco for issuing a Tk 3,000 crore Shariah-compliant green sukuk, and the sukuk made its debut on January 13 last year. Meanwhile, the trustee of the Beximco Green Sukuk Al Istisna'a approved the payment of 5.55 per cent dividend on the Sukuk's face value for the first half of its second year. Investment Corporation of Bangladesh (ICB) is the trustee of the Sukuk.

Beximco Group paid a 30 per cent cash dividend to its shareholders for the financial year ended in June 2022. The listed company’s earnings per share (EPS) stood at Tk14.32 for FY22 against Tk7.53 for the previous fiscal.

Ties between Japan and Bangladesdh grows

 

 

 

 

 

 

 

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Japan Chamber of Commerce and Industry signed a Memorandum of Understanding at the Westin Tokyo of Japan to strengthen bilateral trade and economic relations between the two countries.FBCCI President Md. Jashim Uddin and JCCI Chairman Ken Kobayashi signed the MoU on behalf of their organisations.

The MoU was signed at the inauguration of the summit on Trade & Investment Opportunities between Bangladesh and Japan held at The Westin Tokyo of Japan. Bangladesh’s Prime Minister Sheikh Hasina was present at the program as the chief guest. Under the MoU, the parties agreed to cooperate with each other to develop more productive contacts between the businesses of the two countries, exchange knowledge and information related to bilateral trade and economic development.

Private industry and investment adviser to the Prime Minister Salman F Rahman, Foreign Minister Dr. A. K. Abdul Momen, State Minister of ICT Division Zunaid Ahmed Palak, FBCCI Former President Md. Shafiul Islam (Mohiuddin) MP, Ambassadors of the two countries, high officials were present at the summit.

Prime minister Sheikh Hasina called on Japanese investors to explore business potentials and investment opportunities in Bangladesh. She made the request at a Tokyo summit on ‘Trade and investment opportunities between Bangladesh and Japan’ jointly organised by the Bangladesh Securities and Exchange Commission and the Bangladesh Investment Development Authority. The summit was held in Japan to showcase economic potentials of Bangladesh and strengthen business ties between Bangladesh and Japan as the two countries mark the 50th anniversary of
their relationship.

‘We are determined to build a modern, developed and knowledge-based ‘Smart Bangladesh’ by 2041,’ Sheikh Hasina said. Drawing a reference to HSBC Global Research report, the prime minster said that Bangladesh was expected to become the ninth largest consumer market globally by 2030 overtaking UK and Germany.

Bangladesh enters $3 billion semiconductors sector

 

Bangladesh has the potential to export $3 billion worth semiconductors in the next five years, said Salman F Rahman, private industry and investment adviser to the prime minister.

The global semiconductor industry is worth of $3 trillion and many companies are now operating in Bangladesh's semiconductor industry also, for which the ICT ministry has prepared a roadmap, he said. The fourth industrial revolution is going on, so it is time for working on artificial intelligence, Internet of Things and robotics, he also said. Bangladesh will be able to come out of the 'Middle-income country" trap if it can utilise the advanced technologies, Rahman added.

The global semiconductor market size was USD 527.88 billion in 2021 and is projected to grow from USD 573.44 billion in 2022 to USD 1,380.79 billion in 2029, exhibiting a CAGR of 12.2% during the forecast period. Based on our analysis, the global semiconductor market exhibited a rise of 6.8% in 2020 compared to 2019.

He made the comments after a meeting on "Policy Dialogue on Roadmap for Smart Bangladesh" at the office of the Bangladesh Investment Development Authority in Dhaka's Agargaon. In the meeting, Zunaid Ahmed Palak, state minister for ICT, also spoke.

Global semiconductor sales data released last week showed the industry experienced significant ups and downs in 2022. While chip sales reached the highest-ever annual total in 2022, the slowdown in the second half of the year substantially limited growth. A deeper dive into the year-end data reveals how this pattern is consistent with the semiconductor industry’s predictable cycle and why the current short-term downturn does not change the reality that long-term growth prospects for this foundational technology remain very promising.

In the current cycle, after a brief downturn in early 2020 at the start of the pandemic, the semiconductor industry experienced a period of tremendous growth, and now it is on a significant downward trend that started in the second half of 2022. The current short-term downturn is the result of a confluence of factors, including increasing inflation, geopolitical unrest, and lingering effects of the pandemic. These factors have contributed to macroeconomic uncertainty, decreased consumer spending, and fluctuations in demand for semiconductors. For example, as household spending on consumer electronics like PCs, smartphones, and tablets has decreased, so too has demand for the semiconductors that power them.

Indeed, macroeconomic headwinds have created significant short-term challenges for the semiconductor industry, resulting in weaker industry growth in 2022 than was previously expected. This short-term adjustment, however, does not change the structural drivers of industry growth that are expected to reassert themselves and propel continued growth over the long term. The net of this is semiconductor demand will grow over the long term, as chips continue to make the world smarter, more efficient, and better connected.

Unicef representatives, Bershka country head visit Beximco Industrial Park

Sheldon Yett, Unicef representative to Bangladesh; Elisa Cortes Gil, chief of resource at Unicef and Serafin Girbes Royo, country head of Bershka visited Beximco Industrial Park.  Syed Naved Husain, Beximco Group Director & CEO took them to show all the units of Beximco's Vertical Leeds Green Certified Industrial Park and they took great interest in Beximco initiatives on value addition and innovation using technology, education and R&D as key drivers.

They were also very keen to be updated on Beximco's initiatives on sustainability including collaboration with Recovertex (A global leader in recycling Post Production Consumer Waste) and other recycling initiatives taken by Beximco, state-of-the-art effluent treatment plant along with RO systems for re-cycling water, the most advanced technology based the world largest sustainable washing plant under one roof and Beximco's automated garment manufacturing factories.

Sheldon Yett was overwhelmed by the wide range of value-added fabrics and apparel produced by one company at one location and the widespread use of digitalization across the campus and 3D modeling linked with key customers, reads a press release. They have visited the Beximco-recover recycling plant which is a global producer of recycled cotton fiber and fiber blends, it turns textile waste into low-impact, high-quality recycled fiber. Sheldon Yett was also overwhelmed by Beximco's important steps toward solving Bangladesh´s textile waste problem and establishing a closed-loop industry.

They have also visited Shinepukur Ceramics which produces fine porcelain and high-end bone-China to customers including Royal Doulton, Royal Albert and others.

Singapore keen to invest more in Bangladesh’s energy sector

Singapore has shown its keen interest to increase investment in different sectors, including energy and infrastructure development, said prime minister’s private industry and investment adviser Salman F Rahman. ‘Though Singapore is a small country, it has many successful projects, including airport, railway. The country has expressed its keenness to increase investment in energy, especially renewable energy. It also expressed eagerness to explore new areas of cooperation,’ he said.

The PM’s adviser said this while talking to reporters after meeting with singaporean transportation minister and minister in charge of trade relations S Iswaran at Bangladesh Investment Development Authority building in the city. The Singaporean minister is currently visiting Bangladesh on the occasion of the golden jubilee of the establishment of diplomatic ties between two friendly nations.

The Southeast Asian island nation is also interested in Bangladesh’s various high skilled areas including digital connectivity and services, technology transfer and looks forward to harnessing the possibilities to raise it to the next level. Salman informed that during the meeting, they have discussed various bilateral issues, including investment in Bay Terminal and signing Free Trade Agreement between the two friendly nations.

‘Signing FTA between Bangladesh and Singapore is essential for increase trade between the two friendly nations. Bangladesh and Singapore have already inked a memorandum of cooperation with an emphasis on development in 16 sectors,’ he mentioned. During the meeting, Salman urged Singaporean entrepreneurs to make larger investments in Bangladesh’s economic zones. ‘Bangladesh is establishing 100 special economic zones across the country. I have invited the entrepreneurs of Singapore to invest in those economic zones,’ he added.

The Singaporean minister applauded the sustained economic growth of Bangladesh under the visionary leadership of prime minister Sheikh Hasina and stressed the importance of further deepening and widening the economic relations between the two countries. He said that Singapore was keen on working in the areas of infrastructure development, energy sector, data mining and various high skilled areas such as digital connectivity and services, technology transfer for further enhancement of bilateral relations.