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Eid celebration in Bangladesh, shopping in India
Mithun Chowdhury
31 May 2018, 00:00
Today is 14th Ramadan. Eid ul Fitr, the biggest festival of Muslims will be celebrated in the country after 16 days. Keeping it ahead clothes of different colors and designs are displayed in the showrooms of markets throughout the country including Dhaka. The sellers are busy with breath taking moments in the city’s reputed markets. But most of the items they are selling are Indian goods. Showrooms are full with Indian commodities. The demand of Indian goods is greater than the local products at the moment. So the shop owners decorated their showrooms with huge collection of Indian sharees, three pieces, lehengas and gowns for the women.
Sellers are saying, people celebrate Eid in Bangladesh but they make their shopping in India. They are passing their idle time like the previous year. Gathering of shoppers has decreased in the local shopping centers as India provides free visas during Eid. But they are hoping for more buyers gathering in the next few days.
While visiting different shops in capital’s Basundhara City shopping mall on Thursday it was seen lesser buyers presence. There were two or three customers in some shops and some were without buyers.
Anisul Haque, a seller of Better Choice showroom of Basundhara mall told Rtv online that this year the presence of customers is lesser than the other years during Eid shopping period. Indian business firms are taking away customers through different offers. People are getting India dependent for their shopping day by day. About one lakh people are now in India centering the Eid. About two lakh people will make their shopping in the Eid season. If a person makes shopping worth 10 to 20 thousand taka each than about 200 hundred crore taka will go India from the country.
Sulaiman Hossain, proprietor of Arshi Collection from Basundhara city also mentioned the reason of lesser sale for providing easy visa to India for Eid shopping.
He told Rtv online, Eid shopping usually begins after Shab e Barat but nothing was sold in this year. We are not charging higher rate and making a minimum profit. As getting the Indian visa is easier at the moment so people are India bound at the moment. Buyers’ presence began to decrease from the last couple of years and this year the situation is the worst.
Proprietor of Style Girls of Basundhara city, Khorshed Alam said, people are Kolkata oriented for their Eid shopping as the Indian visa is within reach. Selling in the showroom has decreased by 30 percent. For easy journey and eye catching designs people are going to Kolkata. This has influenced our selling.
He said, though the prices of clothes are less in Kolkata but if we make the calculation of expenditure including staying cost, travel cost and others than it certainly stays above than Bangladesh. Besides there is no scope for changing the items instantly.
Another salesman of Darul Jannat told Rtv online, we sale our products by paying tax to the government. But at the moment the buyers can get their items without paying tax while coming from India.
Some sellers are mentioning different fairs as a reason for sales falling. They expressed anger saying that some people are arranging fair of Indian clothes or selling through online. They do not have licenses or paying any money to the government. People are getting their goods sitting at homes by avoiding hardship of going shopping centers.
AH
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$2.40 Billion Remittance Received in September
In September, expatriates sent $2.40 billion in remittances to Bangladesh. Converted to local currency (at a rate of 120 BDT per USD), this amounts to approximately 28,856.40 crore BDT. On average, the country received $80.2 million per day during the month.
This information was revealed in an updated report from the Bangladesh Bank on Tuesday (October 1).
The report states that $2.40 billion in remittances were received in September, compared to $2.22 billion in August, indicating an increase in remittance inflow.
Key Highlights:
Total Remittance: $2.40 billion (approx. 28,856.40 crore BDT)
Daily Average: $80.2 million
Increase from August: Up from $2.22 billion in August
Previous Highs:
June: $2.53 billion
July: $1.91 billion (lowest in 10 months)
August: $2.22 billion
In September, $638.25 million was received through state-owned banks, $109.98 million through specialized banks, $1.65 billion through private banks, and $6.21 million through foreign commercial banks.
Additionally, between September 29 and 30, expatriates sent $291.68 million in remittances. Between September 22 and 28, the country received $478.89 million, while from September 15 to 21, $467.03 million in remittances were received. During the second week of September (September 8 to 14), the remittance inflow was $582.66 million, and in the first week, expatriates sent $584.54 million.
Earlier, in June, remittance inflows stood at $2.53 billion, while in the first month of the current fiscal year (July), remittances dropped to around $1.91 billion—the lowest in the past 10 months.
In August, remittances increased again, with expatriates sending $2.22 billion.
Bankers note that since the beginning of the new government, expatriates have reduced their use of informal remittance channels (like hundi) and are now sending remittances through official banking channels, even if they have to wait in line. This shift has led to a significant increase in the country's remittance earnings.
Online Income Tax Return Filing Number Exceeded 50,000
From this system, taxpayers can pay taxes through Internet banking, card payment (debit or credit card), and mobile banking and get the facility of downloading and printing copies of submitted returns, receipts, income tax certificates, and TIN certificates. You can also download and print the e-return filed for the previous year.
Spontaneous and motivated taxpayers have already used the e-return option on the National Board of Revenue (NBR) portal till October 2 due to its ease and convenience. As a result, the number of online income tax return filings has crossed 50,000.
NBR Director (Public Relations) Syed A Mu'men told the media that the e-return registration process has already been made more tax-payer-friendly. A biometric SIM registered with a taxpayer's national identity card is required for successful registration. To verify whether the number used by the taxpayer is biometrically registered or not, dial *16001#.
NBR Chairman Abdur Rahman Khan said that all transactions of NBR will be converted into digital form so that taxpayers can get fast and quality services. That is why our activities are ongoing.
He further said that NBR will work towards digital transformation in the coming months, e-return service center is a part of that.
NBR congratulates those taxpayers who have already successfully filed their income tax returns online. Besides, the organization has humbly requested other individual taxpayers to file income tax returns online using the portal on time.
Incidentally, the National Board of Revenue has set up a call center to assist taxpayers with any issues related to e-returns. Last September 12, taxpayers got immediate solutions to e-return-related queries by calling call center number 09643717171. Besides, taxpayers can report any problem related to e-return in writing and get solutions from the e-tax service option of www.etaxnbr.gov.bd.
All Jewellery Shops to be Closed on 11 October: BAJUS
On the occasion of Durga Puja, all jewellery shops in the country will be closed on Friday (October 11).
Bangladesh Jewelers Association (BAJUS) informed this in a circular on Tuesday (October 8).
It is said that as usual on the occasion of Autumn Durga Puja, BAJUS has decided to close all jewellery establishments across the country including the capital Dhaka, on Ashtami Puja on October 11.
According to the announcement of BAJUS, all jewellery associations in the country will be closed on October 11.
Incidentally, the country's market is currently selling 22-carat gold at Tk1,37,449. Tk1,31,197 per 21 carat, Tk1,12,453 per 18 carat, and Tk92,286 per traditional method gold.
Apart from this, the selling price of gold has to be compulsorily added with a government-mandated 5 percent VAT and BAJUS-mandated minimum wage of 6 percent. However, the wages may vary depending on the design and quality of the jewellery.
The price of gold has been adjusted 42 times in the country's market so far this year. Where the price has been increased 25 times, and reduced 17 times. In 2023, the price was adjusted 29 times.
Trade Deficit Shrinks by 10% in July-August
Major Highlights:
Trade Deficit Decreases by 10%: The trade deficit in July-August of the 2024-25 fiscal year fell to 2.75 billion USD, down from 3.04 billion USD last year.
Export Growth and Reduced Imports: Export earnings rose by 2.5%, while import costs decreased by 1.2%, contributing to the reduced deficit.
Positive Current Account Balance: A rise in remittances helped turn the current account balance positive, with a surplus of 111 million USD, compared to a 610 million USD deficit last year.
In the first two months of the current fiscal year, the country's trade deficit has decreased by nearly 10% compared to the same period of the previous fiscal year.
According to the latest data from the central bank, the trade deficit in July-August of the ongoing 2024-25 fiscal year stood at 2.75 billion USD. In the same period of the previous fiscal year, the deficit was 3.04 billion USD. In other words, the trade deficit decreased by 290 million USD this year.
The Bangladesh Bank reported that this was made possible due to reduced import costs along with an increase in exports.
According to the Bangladesh Bank's data, compared to the same period of the previous year, import costs have decreased by 1.2% to 9.91 billion USD. Meanwhile, export earnings have increased by 2.5% to 7.16 billion USD in the first two months of the current fiscal year, compared to the same period last year.
Another significant factor balancing import costs is the increase in remittances over the past two months, which has led to a positive current account balance for the country.
Moreover, from July to August, the current account surplus reached 111 million USD. In the same period of the previous fiscal year, there was a deficit of 610 million USD.
However, the financial account remains negative. The deficit decreased to 145 million USD in July-August, compared to 1.33 billion USD during the same period last year.
Global Oil Prices Plunge Sharply
Global oil prices have fallen by more than 4%.
On Tuesday (October 15), the price of West Texas Intermediate (WTI) dropped by $3.33, or 4.5%, settling at $70.50 per barrel. Meanwhile, Brent crude fell by $3.28, or 4.2%, to $74.18 per barrel.
Both benchmarks hit their lowest levels earlier in the day, with prices dropping by at least $4.
The decline in oil prices is attributed to Israel’s announcement not to strike Iran’s oil facilities, along with forecasts of weak demand.
Mass Business Shutdowns Spark Nationwide Alarm
The news is alarming. Over the past two months (August and September), around 150 companies from both domestic and international groups, including City Group, BSRM, and US-Bangla, have decided to shut down their operations. This will put the jobs of hundreds of thousands of people at risk, while also damaging the national economy.
According to information from the companies, they are closing permanently based on decisions by their boards of directors. Around 160 companies are already in the process of shutting down. The list of closures includes both small enterprises and large corporations. These companies, registered with the Registrar of Joint Stock Companies and Firms (RJSC), come from both product and service sectors. Additionally, some companies that registered with plans for new investments are now on the closure list.
Data from the RJSC shows that 128 companies closed down in the last five months (May to September). Of these, a record 46 companies shut their doors in August alone, followed by 26 in September. Between July and September, a total of 83 companies ceased operations.
It has been reported that the number of closures began to rise in July, the first month of the current fiscal year. Government data indicates that 16 private companies closed in June, followed by 21 in July.
Recently, political instability and the impact of floods have caused severe damage across various sectors, particularly in industry, tourism, agriculture, and services. In addition, labor unrest in the ready-made garment (RMG) sector—one of the country's top exports—is causing further instability. If the situation does not improve, business owners may face even more difficulties.
Companies Closing Permanently
According to the information provided by the companies, based on board decisions, many businesses are shutting down permanently. Around 160 companies are already in the process of closure. These include both small businesses and large corporate entities, spanning both product and service sectors. Some companies that had recently registered for new investments are also shutting down.
The Registrar of Joint Stock Companies and Firms (RJSC) reports that 128 companies closed in the last five months (May to September), with August alone witnessing a record 46 closures, followed by 26 in September. During July-September, 83 companies ceased operations.
The trend began in July when 21 companies closed, compared to 16 in June.
Causes of Business Shutdowns
Political instability and floods have severely affected various sectors, particularly industry, tourism, agriculture, and services. Additionally, labor unrest in the ready-made garment (RMG) sector—one of the country’s top exports—has created further uncertainty. If the situation does not improve, businesses will face even greater challenges.
Domestic Companies Shutting Down
City Group: Shutting down 30 companies, including City Hair Oil, City Seed Crushing Industries, City Condensed Milk, Shampa Sugar Industries, City Biscuit, and several oil mills. The group has appointed a liquidator, G.K. Rajbongshi, who called for an Extraordinary General Meeting (EGM) in September for closure proceedings.
US-Bangla Group: Closing five companies, including US-BD Security Services, US-Bangla Furniture, and US-Bangla Pharmaceuticals. Liquidators have been appointed following their EGM in September.
BSRM Group: Appointed a liquidator for its Recycling Industries division.
Other Companies: Hospitals like Asmat Ali Khan Central Hospital, healthcare companies such as Lab Quest, and paper manufacturers like Hosendi Paper Mills are also shutting down. Additionally, firms from diverse sectors—including Esquire Holdings, Intek Greenpack, and Urban Fit Properties—are winding up operations.
Foreign Companies Closing Operations
Taiwan-based Maryland Engineering and Singapore-based Weeding Private Company are among those shutting down operations.
South Korea’s Bride Medical & Education Services and India’s Shipcard Marine Bangladesh Ltd. have decided to close voluntarily.
Kite Tech International has also approved its closure during a recent EGM.
Economic and Business Outlook
Mir Nasir Hossain, former FBCCI president, noted that many companies are struggling to recover from pre-existing economic crises. While some businesses have managed to survive, others couldn’t overcome the current challenges. He expressed hope that the business environment will improve soon.
Abul Kasem Khan, vice-chairman of A.K. Khan Group, explained that registering new companies or closing existing ones is a regular part of business. Some companies are shut down to avoid taxes or losses, while others close to reinvest elsewhere. He emphasized that the current economic challenges began three years ago but expressed optimism about future domestic and foreign investments.
Analysts' Perspective
Analysts attribute the closures to inflation, rising production costs, reduced sales, high-interest rates, labor unrest, technical and logistical issues, raw material shortages due to dollar crises, and global conflicts. Political shifts have also limited business opportunities for some companies. However, they believe that the situation will not persist for long and expect improvements in the near future.
This report reflects the growing trend of business closures, driven by both internal and external challenges. October is expected to continue this pattern, with more companies planning EGMs to formalize their shutdowns.
Gold Prices Soar in Bangladesh As Well As World Market
A new history has been created in the price of gold, breaking all previous records in the world market. For the first time in the world market, the price of one ounce of gold exceeded 2,711.19 dollars. As such, the price of this precious metal can rise and create new records in the country's market at any time.
On Friday (October 18) at 12:00 pm, the price of gold in the spot market was at $2,711.19. The price rose $18.10, or 0.67 percent per ounce in one day.
The US election, the Federal Reserve's interest rate cut, and tensions in the Middle East are now driving gold prices higher in the global market, Reuters reported.
Bangladesh Jewelers Association (BAJUS) determines the price of gold in the country's market. According to the latest prices offered by the organization, the best quality or 22-carat gold per bhori is priced at Tk1,37,453. This is the highest price of gold in the market of the country so far. The price of 21-carat solid gold is Tk1,31,197, 18-carat is Tk1,12,453, and the traditional method is fixed at Tk92,286.
BAJUS Standing Committee on Pricing and Price Monitoring Committee decides to increase or decrease the price of gold on behalf of the organization. A member of this committee said, "The rate at which gold prices are increasing in the world market, the price of gold will have to be increased in the country's market as well. There is no alternative."
He said, "I decided to increase or decrease the price of gold based on the international market as well as the local market."
