CPD RMG Study Stitching a better future for Bangladesh
Every day, CPD RMG Study team reveals what’s on our economic and apparel radar and curates a selection of the best reports, opinion, and analysis you may have missed.
Use of solar home systems jumped by 27%
Bangladesh witnessed a 27 percent year-on-year jump in the number of solar home systems installed last year, owing to the drop in the production cost aided by technological advancement. By the end of 2017, the country installed 5.2 million SHSs. According to the the “Renewables 2018-Global Status Report”, 17 million Bangladeshis use SHSs, making it the country with the second highest number of people who avail the system after India, which has 148 million users.
Foreign companies with Bangladesh subsidiary to face income tax on share transfer
The proposed national budget for the upcoming 2018-2019 financial year has created an opportunity for the National Board of Revenue to impose income tax on transfer of shares of foreign companies having subsidiary in Bangladesh. The proposed provision would establish taxing rights of the NBR over various forms of share transfer of a foreign company if it has a subsidiary or operations in any form in Bangladesh. The NBR will now be able to claim income tax proportionately on gains derived through share transfer of the parent company taking place abroad.
Capital shortfall of banks reached Tk 23,363 crore
Seven state-run banks have failed to meet the minimum capital requirement, meaning they need further taxpayer-funded recapitalisation. A total of 10 banks, including the seven state lenders, faced a capital shortfall of Tk 23,363 crore as of March, up by more than Tk 3,800 crore compared to a quarter ago. The lenders are Bangladesh Krishi Bank, Sonali, BASIC, Rupali, Janata, Agrani, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, ICB Islamic Bank and Farmers Bank. Among the banks, BKB has had the highest amount of capital shortfall at Tk 7,930 crore, up from Tk 7,777 crore three months ago. Sonali’s capital shortfall rose to Tk 6,755 crore from Tk 5,397 crore.
