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Due to LC Opening Crisis Fruits, Dates price likely to hike amid Ramadan Ahead

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Ramadan

Presently, the consumers will have to spend more money than usual in case of purchasing dates and other fruits—two essential items in iftar during Ramadan, due to importers’ difficulty in opening letters of credit (LCs) on time.

Price hike is a most common phenomenon ahead of the month of Ramadan in Bangladesh, and this year even more due to the LC opening crisis.

Already, the price of dates has doubled in the wholesale and retail markets and it will be more expensive ahead of Ramadan, said some businessmen.

The price of all types of dates has hiked in the local markets ranging from Tk 40 to Tk 160 per kg while different fruits range from Tk 30 to Tk 100 per kg.

Some traders said the prices of these essential iftar items will increase further during the month of Ramadan as they are facing difficulties in opening LCs which will push up the prices of dates and fruits.

According to the sources at Trading Corporation of Bangladesh (TCB), the price of dates increased by 20 percent compared to the last year.

Milton, a shop owner in the Baridhara area, said “The price of dates went more expensive in the past month ahead of Ramadan and I was able to purchase a limited amount of dates due to the soaring price of it.

He also feared that the price of dates would be soared further in the month of Ramadan.

Habibur Rahman, a fruit trader said the price of every fruit has increased.

Whatsoever, ajwa variety of dates is being sold at Tk 750-800 which was available at Tk 600-700 last year. Mariam variety of dates is being sold at Tk 800-850 while the premium variety of dates is being sold at Tk 1000-1200 per kg.

According to the statistics of Bangladesh Bank, the import of dates has fallen by almost half compared to the demands of it but during Ramadan the demand for dates is about 50,000 tonnes.

In the past three months, only 22,000 tonnes of dates were imported which is 46 percent less than the last year. However, the authorities concerned related to import dates have opened LC of 29,000 tonnes dates in January, said sources at Bangladesh Bank.

Sirajul Islam, president of Bangladesh Fresh Fruits Importers Association, said the demand for dates increases three to four times during the month of Ramadan. Besides, there is a demand of 50,000-70,000 dates in the country in a year while 40,000-50,000 is needed in Ramadan alone, he said.

Referring to the opening of LC, Sirajul said “This year the traders faced difficulties in opening LCs in time as they had to open it by paying 100% cash margin while it was 5 percent. The small traders are the worst sufferers in opening LCs.”

The dates are being imported from the Middle East and Africa and dates were being stocked five-six months before the Ramadan, he added.

He also said that the price of dates may increase 30 percent in Ramadan due to the dollar crisis and transport cost caused by the fuel price hike.

If the government will take steps in unloading dates in ports on a priority basis, then there will be no instability in the market, said Sirajul.

Contacted, Commerce Minister Tipu Munshi, said “We’ll take necessary steps so that the consumers can purchase dates, the most essential items in iftar, at a tolerable price.”

He also assured of keeping monitoring the market to prevent volatile price hikes of dates.

Issuing a warning, the minister also said strict action will be taken against those involved in increasing the price of dates after creating an artificial crisis.

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Dhaka, New Delhi Forge Vision for Digital and Green Partnership: PM Sheikh Hasina

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sheikh hasina

Prime Minister Sheikh Hasina announced today (June 22) that Bangladesh and India have agreed on a shared vision for a digital and green partnership aimed at ensuring a sustainable future for both nations.

In a joint statement before the media following her meeting with Indian Prime Minister Narendra Modi at Hyderabad House in New Delhi, Hasina said, “Both countries endorsed the ‘Vision Statement’ to guide us toward a peaceful and prosperous future. We agreed to have a shared vision for ‘Digital Partnership’ and ‘Green Partnership for a Sustainable Future.'”

The bilateral discussions covered a broad range of topics, including water sharing from common rivers, security, and trade. Hasina emphasized the importance of India as Bangladesh’s major neighbor, trusted friend, and regional partner, highlighting the deep historical ties since Bangladesh’s War of Liberation in 1971.

“Our relations with India are ever-growing at a fast pace,” Hasina noted. “Today, our two sides had very productive meetings where we discussed politics and security, trade and connectivity, the sharing of water from common rivers, power and energy, and regional and multilateral cooperation, among other issues of mutual interest.”

The Prime Minister added, “We agreed to collaborate with each other for the betterment of our people and countries.” She outlined a future course of action aimed at ensuring a smart Bangladesh by 2041 and a Viksit Bharat (Developed India) by 2047.

Hasina mentioned that several Memoranda of Understanding (MoUs) were concluded and renewed, with announcements made for future collaboration. She noted that recent years have seen sustained high-level engagements between the two countries, including visits by the Indian president and prime minister to Bangladesh in 2021 to celebrate significant milestones in Bangladesh’s history.

Reflecting on her own diplomatic engagements, Hasina recalled her last bilateral visit to India in September 2022 and her attendance at the G20 Summit in New Delhi in September 2023 as the leader of ‘Guest Country’ Bangladesh. “I am now visiting New Delhi for an unprecedented second time in the same month, June 2024,” she remarked.

Earlier this month, on June 9, Hasina attended the swearing-in ceremony of Prime Minister Narendra Modi and his new cabinet alongside other world leaders, further underscoring the close engagement between the two nations.

During her current visit, Hasina will also meet with the Vice President and the President of India. She expressed optimism that these meetings will provide deeper insights into enhancing bilateral cooperation.

“This is my first bilateral visit to any country after Bangladesh’s 12th Parliamentary Elections and the formation of the new government in January 2024,” Hasina noted, thanking the Indian government for their warm hospitality.

In her concluding remarks, Hasina paid homage to the Indian heroes who sacrificed their lives during Bangladesh’s War of Liberation in 1971, expressing gratitude for India’s contribution to Bangladesh’s independence. She also extended an invitation to Prime Minister Modi to visit Bangladesh at his earliest convenience.

 

 

 

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Govt Aims for Complete Financial Inclusion and Digital Access by 2041

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Smart Bangladesh 2041

The government is committed to achieving complete financial inclusion and fostering a fully inclusive society, ensuring universal access to digital resources by 2041, as part of its vision for a Smart Bangladesh.

An official document presented in Parliament outlines the plan to ensure 100% financial inclusion for all societal groups to build a smart society. The document also envisions the creation of Climate and Disaster-Resilient Smart Villages and Smart Cities, providing equitable access to civic amenities for both urban and rural populations.

The government emphasizes promoting digital access for individuals of all ages, religions, physical abilities, and social classes. It highlights the importance of fostering a digitally tolerant, fair, and inclusive society that embraces diversity.

A key objective is to rank within the top 20 of the Global Cyber Security Index. Last year, Bangladesh advanced 27 places in the National Cyber Security Index (NCSI), prepared by the Estonia-based e-Governance Academy Foundation, rising to 36th position from 85th in December 2020. The NCSI evaluates nations on cyberattack preparedness, cyber events, criminal activity, and major crisis management efforts.

Currently, Greece holds the top spot on the NCSI with a score of 97.10, while the United States and the United Kingdom rank 18th and 19th, respectively. Among Asian countries, Singapore ranks 16th, Japan 34th, Sri Lanka 69th, and Pakistan 70th.

The government is also taking steps to promote a culturally rich society through active participation in economic and governmental activities. Initiatives have been launched to make the languages of Bangladesh’s ethnic groups and the Bengali language more technology-friendly.

One such initiative is the development of ‘Sathik,’ the first Bengali spell checker for AI-based misspelling detection and accurate word suggestion. Additionally, ‘Janamat,’ a Bengali sentiment analysis software, has been created to analyze daily news and public opinion on social media.

A smart universal keyboard for writing all languages, including minority languages, has been developed, along with a conversion software to prevent the breaking of Bengali words across different platforms.

In honor of International Mother Language Day 2024 and in memory of language martyrs, three AI-based Bengali language software—Bangla Text to Speech ‘Uchcharan,’ Bengali Speech to Text ‘Katha,’ and Bengali OCR ‘Barna’—along with a new Bengali font ‘Purno,’ have been introduced.

These initiatives reflect the government’s commitment to leveraging technology for inclusive development and cultural preservation as part of its vision for a Smart Bangladesh by 2041.

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NBR loses hope of receiving returns from 40% of TIN-holders!

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nbr revenue tax

As the gap widens between the number of Bangladeshis with Tax Identification Number (TIN) and those who have actually submitted returns, the country’s revenue authority seems to have accepted the fact that around 40% of TIN-holders may not file their returns this fiscal year.

Currently, there are 1.4 crore TIN-holders in the country, but a significant number of them – about 67 lakh – have not submitted tax returns as of 31 May, according to the National Board of Revenue (NBR) data.

A senior official from the NBR’s income tax department, wishing not to be named, told the news reporter, “We believe that around 40 lakh TIN-holders will not submit their returns.”

The official said, “Two months ago, we submitted a report to NBR Chairman Abu Hena Md Rahmatul Muneem, explaining the reasons for the decline in return submissions.”

The NBR appears uncertain about how to address these non-compliant TIN-holders. When asked, the official said no decision has yet been made regarding them.

“Once a TIN is registered, it cannot be cancelled arbitrarily. The provision for suspending someone’s TIN due to a lack of income in the 2023-24 budget has had limited impact,” he added.

The income tax department’s report, reviewed by the news reporter, identifies various reasons for many TIN-holders not submitting tax returns. It suggests that out of 67 lakh people with TIN who did not file returns, 54 lakh likely refrained due to these reasons.

Those who obtained TIN solely for purposes for which TIN is mandatory such as land sales and specific services are unlikely to submit their returns. Similarly, marginal traders who acquired a mandatory TIN for trade licence but whose businesses have since ceased are also unlikely to file returns.

Additionally, factors contributing to non-submission include death, extended periods of no taxable income, lack of awareness, situations where there is no requirement to show proof of submission of returns, and the extension of tax-free income limits which exempt many taxpayers from their tax obligations.

Besides, permanent departure from Bangladesh, closure or dissolution of companies, taxpayers residing abroad, issuance of duplicate TINs to the same individual, and insufficient information in the TIN database were also identified as major factors.

Taxpayers can submit their returns at any time during the fiscal year. The NBR extended the return submission deadline to 31 January this year.

Those who do not meet this deadline may still submit their returns later, either by paying a fine or by applying for an extension.

An analysis of the NBR report reveals that approximately 10 lakh TIN-holders have acquired new TINs and are required to file their returns in the upcoming fiscal 2024-25.

About 5.28 lakh obtained TINs due to requirements related to land sales. Additionally, 3.75 lakh were compelled to obtain TINs for services from various offices.

Approximately 3 lakh individuals did not file returns due to lack of awareness, and over 2.5 lakh belong to the marginal trader category who obtained TINs for trade licences but whose businesses went bust later.

There are around 2.5 lakh TIN-holders who are deceased, and more than 2 lakh people with TIN with no taxable income also did not file returns.

Over 2 lakh individuals who purchased savings instruments up to Tk2 lakh did not submit returns.

Returns for more than 11 lakh TIN-holders are unavailable due to various other reasons mentioned above.

Approximately 1.37 lakh companies registered with the Registrar of Joint Stock Companies and Firms (RJSC) have not submitted returns.

Experts recommend removing TINs from the NBR database for individuals who will not be able to submit tax returns due to logical reasons.

Dr Ahsan H Mansur, executive director of the Policy Research Institute (PRI), told the news reporter, “TINs belonging to individuals unlikely to file tax returns, such as those deceased or with other logical reasons, should be excluded from the NBR database.”

Additionally, for individuals without taxable income but who are required to file returns, there should be a straightforward and efficient filing process, he said.

Highlighting the need for a legal solution, Mansur said, “In other countries, although cancellation of TINs is challenging, automated management systems facilitate streamlined processes through established procedures. However, achieving similar efficiency is considerably difficult in our country.”

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