Daily News Flash: 29th May 2020

Contents
GLOBAL NEWS ................................................................................................................................... 1
'COVID-19 TO RESULT IN 3% GDP CONTRACTION IN 2020' ................................................................... 1
MACRO ECONOMY ........................................................................................................................... 1
TRADE DEFICIT ROSE BY 11.72% IN JUL-FEB FY19-20 ............................................................................ 1
REVENUE COLLECTION SET TO FALL COMPARED TO PREVIOUS YEAR ................................................... 1
FIRMS CAN FILE DELAYED VAT RETURNS FOR MARCH AND APRIL BY JUNE 9 WITHOUT PENALTY: NBR 1
POSTAL SAVINGS CANNOT BE MORE THAN TK 20 LAKH ....................................................................... 2
NBR ON THE HUNT AS TAX SHORTFALL LOOMS ................................................................................... 2
BANK..................................................................................................................................................... 2
NORMAL BANKING HOURS FROM SUNDAY.......................................................................................... 2
CAPITAL MARKET ............................................................................................................................ 2
STOCK MARKET SET TO REOPEN ON MAY 31 ....................................................................................... 2
GLOBAL NEWS

'COVID-19 TO RESULT IN 3% GDP CONTRACTION IN 2020'

 Two-thirds of alternative fund managers expect GDP to shrink by at least 3% in their focus
markets this year as a result of the coronavirus pandemic, a global survey showed on Thursday.
 The fund managers in the survey by consultants Duff & Phelps also expect the pandemic, which
has locked down economies across the world, to continue to weigh on economies in 2021.
 Fifty-five percent see a 0.5% contraction next year in regions where they invest, with the rest
seeing a deeper contraction.
Source: https://www.reuters.com/article/us-health-coronavirus-funds-survey/covid-19-to-result-in-3-gdp-contraction-in-2020-
fund-manager-survey-idUSKBN2340PK

MACRO ECONOMY

TRADE DEFICIT ROSE BY 11.72% IN JUL-FEB FY19-20

 The trade deficit of the country stood at $10.77 billion in the July-February period of the 2019-
20 fiscal year, up from $9.64 billion during the July-January period, according to central bank
data.
 So, the deficit increased by $1.13 billion or 11.72 percent in a month.
 The current account balance also ventured further into negative territory to $1.83 billion in
February from a $1.51 billion deficit in January. The deficit in the current account balance had
been $3.97 billion during the July-February period of the previous fiscal year.
Source: https://tbsnews.net/economy/trade/trade-deficit-rose-1172-jul-feb-fy19-20-86233

REVENUE COLLECTION SET TO FALL COMPARED TO PREVIOUS YEAR

 The National Board of Revenue (NBR) fears that revenue collection for the 2019-20 fiscal year
may fall below the figures of the previous year, a first ever since the emergence of the country
in 1971.
 Revenue collection for the current fiscal year may stand at Tk2.20 lakh crore, posting a
staggering shortfall of Tk15,000 crore compared to the collection in the 2018-19 fiscal year.
 "Internal consumption will decrease even if the pandemic goes away at the beginning of the
next fiscal year, dragging down industrial raw material import and production," NBR Chairman
Abu Hena Md Rahmatul Muneem informed Finance Division Secretary Abdur Rouf Talukder
recently.
Source: https://tbsnews.net/economy/nbr/revenue-collection-set-fall-compared-previous-year-86242

FIRMS CAN FILE DELAYED VAT RETURNS FOR MARCH AND APRIL BY JUNE 9 WITHOUT PENALTY: NBR
 The revenue authority's move followed within a week of the government issuing an ordinance
that the NBR would be able to extend the deadline for submission of VAT returns without
penalty and interest in the case of a natural disaster, pandemic or war.
 The ordinance became effective retroactively from April 1, six days after the government-
enforced countrywide shutdown to slow the spread of the virus that has shattered the
economic and social lives of people around the globe.
 Save for essential commodity processors and marketers, drug manufacturers, pharmacies,
superstores, groceries and banks, most businesses have remained shut.
Source: https://www.thedailystar.net/business/news/firms-can-file-delayed-vat-returns-march-and-april-june-9-without-
penalty-nbr-1905682

1
POSTAL SAVINGS CANNOT BE MORE THAN TK 20 LAKH
 From now on, one can invest up to Tk 10 lakh under a single name in Post Office Savings Bank,
which was earlier up to Tk 30 lakh.
 As per the circular, the upper limit of investment under joint names has been reduced to Tk 20
lakh. It was Tk 60 lakh earlier.
 The investment limit in the Post Office Savings Bank has been reduced by two-thirds to reduce
government's interest payments and send depositors to the banks, it said.
Source: https://www.thedailystar.net/business/news/postal-savings-cannot-be-more-tk-20-lakh-1906063

NBR ON THE HUNT AS TAX SHORTFALL LOOMS

 The National Board of Revenue, or NBR, has stepped in to bring the tax defaulters, who owe
over Tk 0.5 million to the government, under its scanner.
 The income tax department of the board has instructed all tax commissioners across the country
to prepare a list of these tax defaulters, who blocked undisputed amount of outstanding taxes.
 The step to recover tax is part of the broader measure to offset revenue shortfall in the outgoing
fiscal year, collection of which faced headwinds owing to COVID-19 outbreak.
Source: https://today.thefinancialexpress.com.bd/last-page/nbr-on-the-hunt-as-tax-shortfall-looms-1590688805

BANK

NORMAL BANKING HOURS FROM SUNDAY

 The Bangladesh Bank has instructed banks to revert to normal banking operations from Sunday
while maintaining social distancing measures and following health guidelines.
 As per the instruction, all branches of all banks will have to reopen for transactions from 10am
to 4pm, and bankers will have to stay at the bank premises till 6pm to complete official tasks, an
official of the central bank told The Business Standard.
 The Bangladesh Bank also suggested that branches operating in medium and high risk areas – as
declared by the health department or administration concerned – be open for transactions from
10am to 2.30pm, and bankers stay at banks till 4pm.
Source: https://tbsnews.net/economy/banking/normal-banking-activities-start-sunday-86143

CAPITAL MARKET

STOCK MARKET SET TO REOPEN ON MAY 31

 The Bangladesh Securities and Exchange Commission (BSEC) on Thursday, in its first commission
meeting since the new top officials took charge recently, decided to let the stock exchanges
resume activities.
 Both stock exchanges have to comply with the government instructions issued in order to curb
the spread of the novel coronavirus, said Professor Shibli Rubayat-Ul-Islam, chairman of the
securities regulator.
 Kazi Sanaul Hoq, managing director of the Dhaka Stock Exchange (DSE), told The Business
Standard, "We are fully prepared to reopen the market and will start trading activities from May
31."
Source: https://tbsnews.net/economy/stock/stock-market-set-reopen-may-31-86122

2
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