LOCAL ECONOMY

Govt to cut property registration tax by 40%, align deed value with market rates

 May 21, 2025

• Big news for property buyers! Starting next fiscal year, the government plans to cut land and flat registration taxes and fees by 40%. This move aims to align deed values with actual market rates, making property transactions more affordable and transparent

• Currently, there's a significant gap between official deed values and real market prices. The government's initiative to align these values is expected to reduce discrepancies, curb under-the-table dealings, and boost revenue collection. (Read more)

 Bangladesh moves to scrap import taxes on 100 items to boost trade with US

 May 21, 2025

• The tax exemptions will cover a wide array of items, including machinery, textiles, medical equipment, and fire safety tools. By removing these import duties, Bangladesh seeks to encourage the influx of essential goods, thereby enhancing domestic industries and public services.

• This policy shift is part of Bangladesh's broader strategy to align its trade practices with global standards, especially in light of its impending graduation from the Least Developed Country (LDC) status. By liberalizing import policies, the country aims to attract more foreign investment and integrate more deeply into the global economy. (Read more)

 DCCI seeks security amid investment uncertainty

 May 21, 2025

• The Dhaka Chamber of Commerce and Industry (DCCI) is urging the government to ensure a secure environment for investments. They emphasize the need for coordinated efforts among government bodies, law enforcement agencies, and the business community to foster investor confidence.

• DCCI highlights concerns over high inflation, energy supply issues, and inconsistent policies that are affecting the private sector. They call for policy stability and structural reforms to restore business confidence and encourage both domestic and foreign investments. (Read more)

 The shadow of a 5% tax: Bangladesh's remittance dilemma

 May 21, 2025

• A proposed 5% tax on remittances sent from the US could significantly impact Bangladesh, as remittances from the US have become a major source of income, surpassing those from many Gulf countries. This tax could discourage formal remittance channels, leading to increased use of informal methods like hundi.

• The potential shift from formal to informal remittance channels due to the proposed tax poses risks to Bangladesh's economy. Informal channels are harder to regulate and could undermine efforts to formalize financial flows, affecting the country's foreign exchange reserves and financial transparency. (Read more)

 Trump’s remittance tax plan poses threat to Bangladesh

 May 21, 2025

• Trump's new bill wants to slap a 5% tax on money sent abroad by non-citizens—including Bangladeshi workers in the U.S. That's 3 lakh people. No exceptions, even for small amounts. Bangladesh got $3.94 billion from the U.S. in just 9 months. A 5% cut? That's a big dent

• Experts say it’s unfair. Remitters already pay taxes on their income. This could push people toward illegal channels like hundi. Less money, more risk. Bangladesh’s forex reserves could take a hit. Not good. (Read more)

 Institutions systematically weakened in past 15 yrs: Adviser

 May 21, 2025

• Commerce Adviser Sk Bashir Uddin highlighted that Bangladesh's institutions have been systematically weakened over the past 15 years, affecting both public and private sectors. This erosion has hindered local industry development and market competitiveness.

• The weakening of institutional capacity has led to the emergence of cronyism, resulting in unequal wealth distribution and barriers for new market entrants. The adviser emphasized the need to strengthen bodies like the Competition Commission to ensure fair competition and tangible benefits for the public. (Read more)

 Japanese FDI rising, still there’s room to attract more

 May 21, 2025

• Japanese investment in Bangladesh has been increasing steadily, with over 350 companies now operating in the country—nearly triple the number from a decade ago. However, many Japanese firms remain cautious due to recurring uncertainties in policy and regulation.

• Several major Japanese-backed infrastructure projects are underway, including the Matarbari Deep Sea Port, Dhaka Metro Rail, and the third terminal at Hazrat Shahjalal International Airport. If completed on schedule, these projects could significantly reduce logistics costs, boost efficiency, and make Bangladesh more attractive to investors (Read more)

 Graduation from LDC club to create some opportunities: BB Governor

 May 21, 2025

• Bangladesh Bank Governor Dr. Ahsan H. Mansur expressed confidence that graduating from the Least Developed Countries (LDC) category will open new opportunities for Bangladesh. He emphasized that Bangladesh has outgrown the LDC status and should embrace the transition to enhance its global standing.

• Despite the optimism, concerns remain about the potential loss of preferential trade benefits and concessional loans post-graduation. Officials highlighted that while some support mechanisms will diminish, climate-related funds may still be accessible, given Bangladesh's vulnerability to climate disasters. (Read more)

  Govt targets lowest budget deficit in 14 years

  May 21, 2025

• The interim government plans to reduce the national budget deficit to 3.6% of GDP in the upcoming fiscal year, marking the lowest in 14 years. This move aims to rebuild fiscal credibility and ease pressure from rising debt servicing costs.

• The government intends to limit total expenditure to 12.7% of GDP, down from 14.2% in the original budget for the current fiscal year. This reduction reflects a focus on macroeconomic stability and long-term sustainability. (Read more)

  Stock Market BD

 Stocks rise for second day

 May 21, 2025

• Stocks climbed for the second day. DSEX rose 15.68 points to 4,810.73. Turnover hit Tk 115.85 crore. 230 stocks gained. National Tea led with a 9% jump. International Leasing dropped 8%.

• DS30 index, tracking top companies, up 0.56% to 1,790.08. Shariah-compliant DSES index also rose 0.51% to 1,052.70. Investors seem more confident now. (Read more)

 IPO quota for retail investors 60pc, pooled funds may be redeemed earlier

 May 21, 2025

• The capital market taskforce has increased the initial public offering (IPO) quota for general investors from 50% to 60%, responding to public feedback. This move aims to enhance retail investor participation in the stock market.

• The taskforce's final report suggests that mutual funds with extended tenures may allow early redemption. Unitholders can vote on this change in an extraordinary general meeting (EGM), with implementation required within three months. (Read more)

 Local Business

Walton appoints partner to access Singapore market 

 May 21, 2025

• Walton Hi-Tech Industries has teamed up with Flair M&E Pte Ltd in Singapore. This partnership aims to boost Walton's presence in the Singaporean market. Flair M&E will handle sales, distribution, and marketing of Walton products there for the next five years

• Walton exports to over 40 countries, including 14 in Europe. Their goal? To become a top global electronics brand by 2030. (Read more)

How Renata's Tk1,000cr investment plan became a Tk1,400cr problem

 May 21, 2025

• Renata's initial Tk1,000 crore investment plan has escalated to Tk1,400 crore due to unforeseen global disruptions and currency devaluation. These factors have inflated costs, straining the company's financial resources

• The increased loan repayment burdens, resulting from the expanded investment, have led to a significant decline in Renata's profitability. Company data indicates a sharp decrease in profit margins, highlighting the financial strain caused by the project's cost overruns. (Read more)

 Global Economic Headlines

With output hikes, OPEC+ again targets US shale oil (Reuters)

G-7 Countries Discuss Tariffs on Low-Value Chinese Products (Bloomberg)

Traders Brace for Treasury 10-Year Yield at 5% as Mood Sours (Bloomberg)

Japan’s Exports to U.S. Fall as Tariffs Start to Bite (WSJ)

Nvidia chief Jensen Huang condemns US chip curbs on China as ‘a failure (FT)

GenAI in Animation Global Business Analysis Report 2025 (Yahoo finance)

EU Eyes Trade Tools to Ban Russian Gas (Bloomberg)

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