Bhaluka’s pangas farmers struggling to stay afloat

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Bhaluka’s pangas farmers struggling to stay afloat

Babul Munshi has been commercially cultivating some local fish species, mostly pangas, in Bhaluka of Mymensingh for the past 11 years taking a Tk 2 crore bank loan and paying yearly instalments.

It was all smooth sailing until some three years back when wholesale fish prices started to fall while feed became costlier.

The losses have mounted to such an extent that Babul is getting buried in even more loans to pay the instalments.

He is not alone.

Another farmer, Mainul Huda, said he has been facing “serious losses” for the past two years.

He said he incurred a loss of Tk 1 crore and had already started borrowing money and selling off property to pay bank instalments for a Tk 3 crore loan he took last year.

He also blamed the increase in the number of fish farmers for the trouble.

One farmer said his annual sales of pangas dropped from 4-5 lakh pieces to just 1-2 lakh pieces in just two years.

The predicament has put into danger the livelihood of most of around 6,000 farmers of Bhaluka, which caters to some 70 percent of the country’s demand for pangas, according to the upazila’s Senior Fisheries Officer Rumana Sharmin.

Many have already gone bankrupt and abandoned their endeavours.

Sharmin too blamed a rise in fish feed prices and drop in wholesale fish prices.

Babul said they spent Tk 70-90 behind each pangas, as each one requires two kilogrammes of feed to reach one kg in weight and become ready to be sold in the market.

The selling price had been more than Tk 100 until last December when it dropped to Tk 50-60, he said.

He said there has been a slight price rise for the past one month but recouping losses seemed a far cry.

Mainul said the cost of making one kg of feed at home rose from Tk 27 to Tk 35 while the price of manufactured feed available in the market increased from Tk 35 to Tk 45.

He said wholesalers from other districts including Cumilla, Chattogram, Sylhet, Barishal, and Brahmanbaria were no longer solely dependent on the upazila’s produce.

Abu Bakar Siddiqui, also a farmer, said other local species were also experiencing a price drop in the wholesale market.

“We have already informed the higher-ups and steps are being taken to provide subsidies,” said Sharmin.

Zillur Rahman, deputy director for aquaculture at the fisheries department, said they were giving emphasis on homemade feed and reducing management costs like electricity bills.

“Subsidy is not a permanent solution. We are trying to encourage people to go for exports,” he said, adding that this would help increase demand alongside prices.

Unrealised loan totals Tk 1.31t from 230,658 defaulters: Muhith

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Unrealised loan totals Tk 1.31t from 230,658 defaulters: Muhith

 FE Report 

The number of loan defaulters in the country reached 230,658, and the amount of unrecovered loan from them totalled over Tk 1.31 trillion until June 2018, according to the central bank.

Finance Minister A M A Muhith disclosed the information in the Jatiyo Sangsad (JS) on Wednesday in response to a query of Member of Parliament (MP) Pinu Khan.

The finance minister also informed JS that the loan defaulters were involved with 88 banks and financial institutions (FIs).

Of the banks, the volume of default loans with Sonali Bank was Tk 186.62 billion, followed by Janata Bank Tk 148.40 billion, Agrani Bank Tk 92.84 billion, Rupali Bank Tk 49.01 billion, Basic Bank Tk 85.76 billion, Bangladesh Krishi Bank Tk 21.78 billion, and Bangladesh Development Bank Tk 23.32 billion.

The amount of default loans with Pubali Bank was Tk 21.16 billion, National Bank Tk 50.76 billion, Islami Bank Tk 35.20 billion, and Prime Bank Tk 35.85 billion, Mr. Muhith also said.

Mr Muhith unveiled the list of the top 100 loan defaulters that includes Elias Brothers, Quantum Power System, Remix Footwear, Max Spinning, Rubia Vegetables Industries, Rising Steel, Dhaka Trading House, Bentex Industries, Anowara Spinning, Crescent Leather Products, Yasin Enterprise, Chowdhury Knitwear, Siddique Traders, Rupali Composite Leatherwear, Alpha Composite Towels, Hall-Mark Fashion, Munnu Fabrics, Fair Yarn Processing, Fair Trade Fabrics, Shaharish Composite Towels, Mark International, Suruj Miyan Jute Spinning Mills, Pacific Bangladesh Telecom, Saleh Carpet Limited, and Padma Poly Cotton Knit Fabrics.

Other defaulters include S K Steel, Helpline Resources, H. Steel Re-rolling, Ottobi, Bismillah Towels, Taipei Bangla Fabrics, Dhaka North Power Utility, T & Brothers Knit Composite, Tania Enterprise Unit-2, Six Seasons Apartment, Islam Trading Consortium, Rahman Spinning Mills, Japan-BD Sec Printing and Papers, Bangladesh Industrial Finance Company, Semat City General Trading, M K Ship Bulders, Cotton Corporation, National Steel, M B M Garments and Textile, Sonali Jute Mills, Expertech Limited, Walmart Fashion, Sad Musa Fabrics, Chittagong Ispat, Agro Industries, Himalaya Paper and Board Mills, Amader Bari Ltd, Emdadul Haq Bhuiyan, Chowdhury Towels, Chowdhury Leather, Earth Agro Farm, Northern Power Solution, Mac Ship Builders, The Arab Contractors, One Denim Mills, Liberty Fashion Ware, Biswas Garment, Mastered Trading , Hindul Wally Trading, Sagir & Brothers, Globe Metal Complex, Ornate Services and Jalal and Sons.

Build up capacity of Ctg port

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Build up capacity of Ctg port

Analysts say as export-import on the rise

Shipping Minister Shajahan Khan speaks at a seminar on “Logistical challenges and opportunities of business” organised by the International Business Forum of Bangladesh in the capital's Brac Centre Inn yesterday. Photo: Star
Star Business Report

Bangladesh should work on improving the capacity of its premier seaport to be able to handle the growing export and import activities in the next 5-10 years, analysts said yesterday.

The number of container ships and the flow of containers to Chittagong port will almost double to 2,200 in the next five years, they said.

By that time, the traffic flow on the Dhaka-Chittagong highway will rise by 60 percent, said Forrest Cookson, an economist and a consultant of the Bangladesh Bureau of Statistics.

Inflows through land ports will more than double while air cargo will grow by at least three times in seven years, he said while presenting a keynote paper on “Logistics: challenges and solutions” at a seminar.

“All of these have to be accomplished with the major facilities that we have in hand. There is not enough time to build new deep sea container handling ports,” he said.

“There is not enough time to build a new airport or another road linking Chittagong and Dhaka.”

“Problems are urgent and immediate actions should be taken,” Cookson said at the event organised by the International Business Forum of Bangladesh (IBFB) at Brac Centre Inn, Dhaka.

Cookson said the Chittagong port has 16 berths for container ships and three of the berths have been operating gantry cranes while another three are being installed.

The port will be able to handle 1,250 vessels when the six cranes will start operating, he said, adding that the port can manage 1,100 to 1,200 container vessels a year.

Cookson suggested that gantry cranes be installed in all the 16 berths so that the Chittagong port can handle the growing number of vessels and increased container flow.

A bay side terminal with 14 berths and cranes should be built, said Cookson, also a former president of the American Chamber of Commerce (AmCham) in Bangladesh.

Traffic on the Dhaka-Chittagong highway will increase because of the ban on slow vehicles and a cut in access to the main highway, he said.

The air cargo services should be improved as a growing number of apparel exporters are now shipping their goods through the air, he said.

Bangladesh has no choice other than developing its logistics systems, which will face tremendous pressure if the country wants to continue growing, he said.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, stressed on the need for ensuring governance in the overall logistics system.

“We have to come out from the overdependence on roads for logistics. We have to improve rail and inland waterways to develop a multimodal system.”

He suggested linking waterways and railways with the special economic zones.

A comprehensive plan is needed, said Nazneen Ahmed, senior research fellow of the Bangladesh Institute of Development Studies.

The Chittagong port has progressed a lot over the past decade, Shipping Minister Shajahan Khan said at the event.

An automation system has been developed and over 200 equipment have been procured to improve the performance of the port, he said.

He said three cranes have already been delivered and three will be delivered within this month.

“We expect that we will be able to procure 10 cranes by this year.”

Khan said construction of a new terminal at Patenga has started and steps have been taken to acquire land for establishing a Bay terminal.

The government has taken steps to improve draft of the channel and other facilities at Mongla port, he said.

“We have also decided to buy a crane for the Mongla port.”

Dredging in the channel to Paira port is going to start soon, he said, adding that the government also plans to establish another port at Moheshkhali in Chittagong.

Container handling at Pangaon terminal is increasing, he said, adding that the government also plans to establish land ports in hilly districts.

Humayun Rashid, the IBFB president, and MS Siddiqui, vice president, also spoke among others.

Australia can invest in infrastructure projects

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Australia can invest in infrastructure projects

Experts tell ABCCI discussion

FE Report

Speakers at a discussion called on Australia to invest in infrastructure projects and skills development programmes in Bangladesh.

They also assured the Australian investors of continuity in the country’s economic policy and political stability.

The Australia Bangladesh Chamber of Commerce and Industry (ABCCI) organised the discussion on ‘Bilateral business and trade opportunities between Australia and Bangladesh’ at a city hotel on Sunday.

Speaking as the chief guest, the Prime Minister’s international affairs adviser Gowher Rizvi said the next national elections will be held on time and in a free and fair manner.

Whatever would be the results of the election, there would be no change in the country’s economic policy, he said.

“There will be continuity… so the investors who come here should be assured that there will be no change (in economic policy),” he added.

The ABCCI also accorded a reception to Australian High Commissioner to Bangladesh Julia Niblett at the function.

Executive Chairman of Bangladesh Investment Development Authority (BIDA) Kazi M Aminul Islam and President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md Shafiul Islam (Mohiuddin) attended the programme as the special guests.

Business leaders from various sectors and members of other bilateral chambers were also present at the function.

In his speech, Gowher Rizvi said there is no obstacle to any political party participating in the elections.

He expressed the hope that all the political parties will take part in the national elections.

Referring to the country’s significant economic growth over the years, he said: “What gave our country seven plus growth rate has been our political stability and growing maturity of our democratic institutions.”

Political stability and continuity is helping propel the country’s economic growth, he added.

Addressing the business leaders at the programme, he said businesses should continue their respective jobs while the government would ensure stable political and economic atmosphere.

Speaking on the occasion, Australian High Commissioner Julia Niblett said bilateral trade between the two countries has grown significantly in the last five years. The volume of trade was over $2.0 billion in the last fiscal year.

Though the trade relations between the two countries are strengthening, there is plenty of scope for further growth, she added.

She also said reducing the lead time for export and clear decision-making process are essential to boost the bilateral trade.

She lauded the Bangladesh government for taking steps to meet its energy demand in line with the economic progress.

“This has been ambitious and impressive focus on policy to support Bangladesh’s economic growth,” she said, adding that reliable energy supply is crucial to attract both domestic and foreign direct investment.

Executive Chairman of BIDA Kazi M Aminul Islam mentioned various initiatives taken by the government to help businesses flourish in the country.

“We are developing both institutions and human capital to ensure economic growth,” he said.

BD loses $6.5b to urban pollution a year, says WB

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BD loses $6.5b to urban pollution a year, says WB

FE Report

 

Bangladesh loses about US$ 6.5 billion due to pollution and environmental degradation in its urban areas every year, according to a World Bank (WB) report.

The amount is equivalent to 3.4 per cent of the country’s Gross Domestic Product (GDP) in 2015, said the WB report.

The economic cost of mortality in terms of foregone labour output is estimated at $ 1.40 billion in the urban areas, which is equivalent to 0.7 per cent of Bangladesh’s GDP in that year.

Of the foregone labour output, $ 310 million, equivalent to 0.2 per cent of GDP, is estimated to have incurred in Dhaka alone, it revealed.

The report – ‘Enhancing Opportunities for Clean and Resilient Growth in Urban Bangladesh: Country Environmental Analysis 2018’ – was released at a city hotel on Sunday.

Environment and Forest Minister Anisul Islam Mahmud was the chief guest of the programme.

The WB report said pollution, which has reached an alarming level, caused about 80,000 deaths in the cities in 2015. Twenty eight per cent of all deaths were from diseases caused by pollution across the country, compared to the global average of 16 per cent.

Although textile sector plays an important role in driving the national economy forward, the report revealed that the sector produces 2.81 million tonnes of wastes annually as of 2012.

Bangladesh’s regime for environmental protection is less strict than most other countries in Asia, and along with low fines it is only one notch ahead of Vietnam, it opined.

WB acting country director for Bangladesh Rajashree Paralkar said that Bangladesh has been paying a high price due to environmental degradation and pollution.

The mortality rate from diseases caused by pollution here is the highest in South Asia, she added.

Urbanisation and industrial growth have come with high environmental costs that are increasingly harming the country’s prospects for continued strong economic progress, according to the WB report.

Nearly one million people in Bangladesh, mostly poor, are at risk of lead contamination. Besides, in the last 40 years, Dhaka lost about 75 per cent of its wetlands.

WB particularly focused on conservation of the country’s wetlands and rivers, and scaling up efforts to conserve the mangroves and other forest resources.

Sustained unplanned urbanisation, infilling and delinking of perennial wetlands and rivers, and shrinking of many link canals across Dhaka have exacerbated urban flooding and contributed to various recurring environmental problems, the WB report said.

It suggested that Bangladesh should act now to tackle environmental degradation and pollution, especially in the cities, to achieve upper-middle income status.

The study, carried out in three cities – Dhaka, Cox’s Bazar and Pabna – called for using improved technology and practices in different industries, especially in textile, power and infrastructure sectors.

It also stressed for more collaboration between the public and the private sectors in this regard.

The WB report observed that weak institutional capacity of the enforcement agencies concerned, such as Department of Environment (DoE), and insufficient engagement of other key players are largely responsible for the unabated environmental pollution in Bangladesh.

It focuses on three areas – cost of environmental degradation, clean and resilient cities, and institutions for clean industrial growth.

The report suggested that the country requires effective policies, a sound legal framework, and stronger institutions at national and local level.

Here growth has featured uncontrolled urbanisation and industrialisation in the context of inadequate pollution control and poor management of natural resources that provide critical eco-system services, the report added.

Some 18,000 deaths from environmental pollution occurred in 2015 in Dhaka, the second least liveable city in the world.

In addition, 578,000 life years were lost in the capital in that year alone, showing the urgency to immediately fix its environment, noted the report.

Since the participation of women workers is significantly higher compared to men in the country’s RMG sector, the former tend to be more exposed to wastes produced.

In his speech, Anisul Islam Mahmud said that the rivers are already getting destroyed, as the manufacturers do not think what will happen in future due to their actions.

They only think that they are earning money, generating employment and exporting goods, he added.

Regarding the weak enforcement of law, the minister opined that Bangladesh is at a low level due to some compulsions and complications.

Besides, development has some cost, and it is not anything unique for Bangladesh, he added.

Rich in Bangladesh rising faster than anywhere

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Rich in Bangladesh rising faster than anywhere

Star Business Report

Bangladesh has topped the list of countries that saw the quickest growth in the number of ultra-wealthy people between 2012 and 2017, according to a new report from New York-based research firm Wealth-X.

The number of ultra-high net-worth (UHNW) individuals in Bangladesh rose by 17.3 percent during the period, the World Ultra Wealth Report 2018 shows.

UHNW individuals are defined as people with investable assets of at least $30 million, usually excluding personal assets and property such as a primary residence, collectibles and consumer durables.

In terms of growth, Bangladesh is ahead of China, Vietnam, Kenya, India, Hong Kong, Ireland, Israel, Pakistan and the US.

Although the US recorded the weakest growth in its ultra-wealthy population, it remained by far the leading country for UHNW individuals in 2017, accounting for a 31 percent share.

The US was home to 79,595 ultra-wealthy individuals last year, followed by Japan, China, Germany, Canada, France, Hong Kong, the UK, Switzerland and Italy.

Among the top 10 countries, China and Hong Kong have achieved the strongest gains in their ultra-wealthy populations over the past five years. In contrast, those of Japan, Canada, Italy and the UK have largely stagnated. Looking at a broader range of nations, China – perhaps surprisingly – is not the global leader.

“That status lies with Bangladesh, which has registered compound annual growth in its UHNW population of 17 percent since 2012,” said the report.

“Double-digit increases have also been posted by Vietnam, Kenya and India, illustrating the significant opportunities for wealth creation across the emerging world.”

To size and forecast the ultra-wealthy population and its combined wealth, Wealth-X uses proprietary Wealth and Investable Assets Model, which covers the top 75 economies that account for 98 percent of the global GDP.

To estimate total private wealth, it uses econometric techniques that incorporate a large number of national variables such as stock market values, GDP, tax rates, income levels and savings from sources such as the World Bank, the International Monetary Fund, the Organisation for Economic Cooperation and Development and national statistics authorities.

Wealth-X estimates wealth distribution across each country’s population.

According to the report, in 2017, the world’s UHNW population rose by 12.9 percent to 255,810, a sharp acceleration from a year earlier. Their combined wealth surged by 16.3 percent to $31.5 trillion, implying healthy gains in average net worth.

The finance, banking and investment sector was the primary industry focus for the largest proportion of the global ultra-wealthy population in 2017, accounting for a 14.2 percent share.

Manufacturing was the second most significant industry, with its share edging higher to 7.6 percent.

The proportion of the global ultra-wealthy population whose fortunes are predominantly self-made continued to increase last year, hitting 67.5 percent.

The global ultra-wealthy population remains heavily male dominated, although the proportion of women has risen gradually over recent years and increased further in 2017 to a record high of 13.7 percent.

The number of UHNW women grew by an estimated 31 percent to just under 35,000.

Philanthropic activity is cited regularly as one of the main interests of the global ultra-wealthy population.

Education is the top charitable cause among men and women, with around a third of UHNW individuals directing at least part of their philanthropic endeavours to programmes such as scholarships, outreach courses, teacher training and more.

Source tax on export proceeds brought down

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Source tax on export proceeds brought down

Star Business Report

The National Board of Revenue (NBR) has reduced withholding tax on the total proceeds from exports for all items to 0.6 percent in the face of demands from entrepreneurs, particularly apparel makers.

Exporters, except jute goods makers, paid 0.7 percent withholding tax on their proceeds in fiscal 2017-18 ending on June 30.

Jute goods makers have been paying 0.6 percent advance income tax and the benefit is scheduled to expire on June 30 next year.

The latest cut on source tax will also expire on June 30, 2019, according to a notification of the NBR issued at the end of last week.

With a view to raising revenue collection, the source tax for clothes manufacturers and exporters of other products including leather goods, frozen and packed foods and vegetables was increased to 1 percent in the budget for fiscal 2018-19.

“We have reduced the withholding tax rate on exports in line with their demand and considering the garment sector’s contribution to employment generation,” said Kanon Kumar Roy, NBR member for tax policy. He said revenue collection from exports would decline because of the discounts. But the loss would be offset if export earnings rise.

“We want our export earning sectors to do better,” he said. Exporters fetched $36.61 billion last fiscal year, posting 5.81 percent year-on-year growth.

Garment and knitwear makers earned $30.61 billion, which was 83.5 percent of the total export receipts for the year, according to data from Export Promotion Bureau.

The tax authority also reduced corporate tax rate for garments and knitwear makers by 3 percentage points to 12 percent for fiscal 2018-19 from 15 percent imposed at the beginning of the current fiscal year.

The two major export earning sectors were enjoying 12 percent corporate tax in fiscal 2017-18. Green factories had to pay 10 percent tax on their incomes last fiscal year. The NBR maintained the rate for the current year.

Latest data on collection of source tax from exports is yet to be made available from the NBR.

In fiscal 2015-16, the tax authority logged in Tk 1,484 crore as source tax mainly from garment shipments.

The NBR got the highest amount of source tax from exports in fiscal 2013-14, when Tk 2,080 crore was collected, according to its annual report.

IDB promoting innovation, says its president

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IDB promoting innovation, says its president

The development bank opens Dhaka office today
Star Business Report

Islamic Development Bank (IDB) has been promoting and supporting science, technology and innovation as part of an initiative to implement its vision to help people through investment in enterprise development.

The Jeddah-based multilateral lender made the disclosure yesterday at the launch of the second edition of a “Transformers Roadshow” at Radisson Blu Dhaka Water Garden.

The first one was organised by the IDB at Astana Islamic Economy Forum in Kazakhstan on July 3.

“The IDB has started to organise the roadshow aiming to identify innovators, scientists and entrepreneurs from its member countries,” Bandar Hajjar, IDB president, told the opening of a competition.

“Transformers” is a science, technology and innovation competition in which entrepreneurs and innovators can pitch their concepts supporting one or more of the sustainable development goals.

Hajjar said the IDB works on improving human development and the roadshow would help developing countries promote new innovations in the fields of science, technology and businesses.

“Along with the grant and financing, the developing countries should be provided with more opportunities so that they are able to stand on their own feet,” he said.

The IDB will make use of one country’s innovative ideas in other nations to improve people’s livelihoods, Hajjar said.

“We will open a regional office in Dhaka tomorrow (today) to cover 19 countries like Singapore, Australia, Thailand, India,” he added. Yeafesh Osman, minister for science and technology, said Bangladesh could solve different challenges in the future with the IDB’s cooperation.

“Bangladesh and the IDB have been maintaining a warm relationship for long. The latest initiative of the institution will help improve living standards of people as communication and technology play key roles in developing the socioeconomic situation,” he said.

Hayat Sindi, senior advisor to the IDB president, said a large number of people were still deprived of the facilities science and technology offer.

“The IDB has created a digital platform, namely ‘Engage’, to build up a digital world. The bank has an allocation of nearly $500 million to promote the excellent ideas,” she said. Anyone can use the fund to realise brilliant ideas, Sindi said.   

Up to 20 teams of people was selected to take part in the competition where they got the opportunity to meet experts so that their ideas could become a reality.

Judges selected three winners who will receive awards in presence of Prime Minister Sheikh Hasina at a ceremony marking the opening of the IDB’s Dhaka hub today.

Each winner will be awarded $3,000 in prize money and the opportunity to join a high-level IDB annual service technology and innovation conference in December.

Private sector can help improve infrastructure: IDB president

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Private sector can help improve infrastructure: IDB president

Star Business Report

Islamic Development Bank President Bandar Hajjar yesterday stressed the importance of the private sector to improve the basic infrastructure in its member countries and achieve the Sustainable Development Goals (SDGs).

Fifty-seven member countries of the IDB require $1 trillion per annum to achieve the SDGs and $700 billion to meet the growing demand for basic infrastructures, he said.

He said the multilateral development banks have a financing capacity of $147 billion per annum for the IDB’s members.

“How will we fill up the gap? A vibrant private sector can only fill up the vacuum,” he said at a press conference at the IDB Bhaban after the opening of the bank’s regional hub in Dhaka.

Earlier, Prime Minister Sheikh Hasina opened the regional hub of the bank. Bangladesh is the largest beneficiary of financing from the multilateral bank, with its total financing for the country being in excess of $21.7 billion.

Of the funds, 80 percent went to the private sector, Hajjar said. He said the IDB has adopted a new model to encourage the private sector which will play a vital role in developing the human capital of the member countries.

The member countries will have to extend support to give a boost to investment in the private sector, he said, adding that the MDBs should also help them transform their economies with market-oriented growth.

“We are transforming our bank not only for finance; we have focused on increasing the capacity of human capital and build the institutional capacity of our member countries,” he said. The IDB president said the volume of the global capital market has gone beyond $2 trillion and the private sector can get support from the window.

There is a requirement to develop an investment-friendly environment to use the fund of the capital market, he said. Speaking at the briefing, Finance Minister AMA Muhith said over the years, the IDB has gradually established itself as one of the leading multilateral development banks in the world.

The bank has embraced new ideas, come up with innovative financial instruments and expanded its remit substantially, he said. He said the scope for Bangladesh to get soft loans is gradually shrinking as it has become a lower-middle country from a low income nation.

The country has ability to take loans at higher interest rate than the rate entailed with soft loans offered by the MDBs, he said. The regional hub in Dhaka will cover 19 countries, including Singapore, Australia, Thailand and India.

Asked why the IDB chose Bangladesh to set up the regional hub, Hajjar said geographical location was one of the major reasons. Besides, a strong growth of Bangladesh and its skilled workforce, educated people, resources and leadership have also been considered, he said. “The IDB has long held a close relationship with Bangladesh as it continues to move towards a prosperous future.”

“Our regional hub will focus on partnering with local stakeholders to drive the socio-economic development in the country and provide a platform for Bangladesh’s people to build a prosperous future,” he said.

Fourteen people, including four foreign nationals will initially work at the regional office and the number will increase if required, Hajjar said.

No VAT on computer parts at trading stage: NBR

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No VAT on computer parts at trading stage: NBR

Star Business Report
The revenue authority has withdrawn value-added tax (VAT) on computer parts and accessories at the trading stage to help consumers enjoy low prices.

The move comes three months after the imposition of a 15 percent VAT on parts and accessories of computers at the trading stage.

In the past two fiscal years since 2016-17, the NBR had been offering exemptions on computer parts and accessories. Bangladesh Computer Samity, the apex trade body for ICT business in Bangladesh, has been demanding removal of such VAT, which, it thinks, would fuel the prices of computers.

Use of laptops and computers is increasing in Bangladesh. The market for laptops is annually growing by 12 percent, driven by a growing middle and affluent class and overall income, International Data Corporation, a Singapore-based consulting firm, found in a survey.

The laptop market in Bangladesh was worth $165 million in 2017, according to the IDC.